Canadian Mortgage, Insurance and Financial Glossary

Words categorized under Investments

accounts payable (A/P, AP) — Definition (Investments, Financial-banking)

Money owed by a business for goods and services received.

accounts receivable (A/R, AR) — Definition (Investments, Financial-banking)

Money owed to a business by purchasers of goods and/or services.

accrual method — Definition (Investments, Taxation, Financial-banking)

Business accounting in which you report income in the year you earned it and expenses in the year you incur them, rather than reporting income and expenses when you receive payment or when you pay the expenses. Under this method, if you built a deck and billed the client in December 1999, the amount you charged would be reported in 1999 as income even if you didn't get the payment until January 2000. If you own a business that maintains an inventory, you are required to use the accrual method.

accumulation period (AP) — Definition (Investments, Annuities, Financial-banking)

The period where an investor continues to put money into his or her investment(s).

acid-test ratio — Definition (Investments, Financial-banking)

A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.

actuarial table — Definition (Investments, Insurance, Financial-banking)

A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.

actuary — Definition (Investments, Insurance, Financial-banking)

An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.

agency (agcy) — Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)

A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party.

agent (agt) — Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)

A person who acts on behalf of another. In real estate, an agent is a person who conducts transactions on behalf of sellers and sometimes buyers.

angel investors — Definition (Investments, Financial-banking)

Private individuals with capital to invest in business enterprises.

annual crediting cap — Definition (Investments, Financial-banking)

The highest rate that can be credited to an equity-indexed annuity in a year.

annual percentage yield (APY) — Definition (Investments, Financial-banking)

The percentage, required by Truth in Savings regulations, to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year.

annuitant — Definition (Investments, Annuities, Financial-banking)

An individual who owns or is the recipient of an annuity.

annuitization — Definition (Investments, Estate-management, Annuities, Financial-banking)

The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.

annuitization options — Definition (Investments, Estate-management, Annuities, Financial-banking)

The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.

annuity — Definition (Investments, Estate-management, Annuities, Financial-banking)

A financial instrument that disperses a number of payments over a set period of time.

annuity certain — Definition (Investments, Estate-management, Annuities)

A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.

annuity consideration — Definition (Investments, Annuities)

The payment(s) made by an individual in order to accumulate value in an annuity.

annuity contract — Definition (Investments, Estate-management, Annuities)

A contract that outlines each party's responsibilities as they relate to an annuity.

annuity factor method — Definition (Investments, Estate-management, Annuities)

A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.

annuity in advance — Definition (Investments, Annuities, Financial-banking)

When payments are made at the start of a period as opposed to the end.

annuity in arrears — Definition (Investments, Annuities, Financial-banking)

When payments are made at the end of a period as opposed to the start.

annuity ladder — Definition (Investments, Annuities, Financial-banking)

A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.

annuity table — Definition (Investments, Estate-management, Annuities)

A table that can be used to find the future value of an annuity.

appreciation — Definition (Investments, Real-estate, Financial-banking)

An increase in the value of a property or item.

asset-backed securities (ABS) — Definition (Investments)

Securities backed by a pool of assets.

  ➥  Financial security made up of a bundle of assets.

average annual yield (AAY) — Definition (Investments, Financial-banking)

The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.

backflip takeover — Definition (Investments, Financial-banking, Legal-contracts)

A form of takeover where the purchasing company becomes a subsidiary of the purchased company.

balance sheet (B/S, BS) — Definition (Investments, Insurance, Financial-banking)

A listing of a business' assets, liabilities and ownership equity as of a specific date.

Bank of Canada (BC, BOC) — Company Est.1935, Ottawa, Ontario, Canada

Canada's central bank.

  ➥  Canada's central bank.

bank spread — Definition (Investments, Mortgages, Financial-banking)

The difference between the interest rate a bank charges a borrower and the interest rate a bank pays a depositor.

basis — Definition (Investments, Taxation, Insurance, Financial-banking)

That on which a thing rests or is founded.

bear market — Definition (Investments, Financial-banking)

When stock prices are decreasing, it's a bear market.

beneficiary — Definition (Investments, Estate-management, Annuities, Insurance)

An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.

bond — Definition (Investments, Financial-banking)

A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.

bond ladder — Definition (Investments, Financial-banking)

A series of bonds with different maturity dates, often times evenly spaced over a set period of time.

borrower — Definition (Investments, Mortgages, Financial-banking)

A person who borrows money or obtains a loan.

broker-agent — Definition (Investments, Insurance, Financial-banking)

An individual, usually in the employ of an insurance company, that is licensed as both an insurance broker and agent.

bull market — Definition (Investments, Financial-banking)

When stock prices are increasing and it's a healthy market, this is known as a bull market.

business (busn) — Definition (Investments, Financial-banking, Abbreviation, Legal-contracts)

A company, either for-profit or non-profit.

business net retention — Definition (Investments, Insurance, Financial-banking)

A measure of the gross writings retained by a company for their own account.

buyer's market — Definition (Investments, Real-estate, Financial-banking)

When market conditions favour the buyer.

call deposit account — Definition (Investments, Financial-banking)

A bank account that combines some features from both savings and checking accounts.

Canada Education Savings Grant (CESG) — Canada

Program recently introduced by the federal government whereby it will invest, in the form of grants, along-side parents who save for their children's education through RESPs. The government will top up contributions made to an RESP by 20% up to a yearly maximum of $400 per beneficiary.

Canada Pension Plan (CPP) — Canada

A public pension plan administrated by the Canadian government.

Canada Savings Bond (CSB) — Canada

A secure way for Canadians to save. The bonds, which are a form of debt issued by the Canadian government, are cashable, with proper identification, at any time at most Canadian financial institutions.

Canadian Investor Protection Fund (CIPF) — Company Est.1969, Canada

A Canadian not-for-profit that protects investors from a CIPF members' bankruptcy.

  ➥  Non-profit organization that provides investor protection for investment dealer bankruptcy.

capital — Definition (Investments, Financial-banking)

Money that is used to make money; for example, to buy rental property or a business.

capital assets — Definition (Investments, Taxation, Financial-banking)

Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."

capital expenditure — Definition (Investments, Real-estate, Financial-banking)

The cost of making an improvement to a property.