Glossary / Terms
Asset Class:
Bonds: You lend your money to a Company or the Government who promise to pay interest over time,
plus they promise to re-pay the original investment.
Cash: This is short-term debt, e.g., 91, 182 day T-Bills, currency such as coins or bills.
Commissions:
Common Shares:
Deferred Sales Charges (DSCs):
GICs/GIAs: Money deposited in Banks, Insurance Companies, Credit Unions. You are paid interest on your
monies over time.
Funds: You and other investors' money is placed in a "bucket" or "pool". Professional Investment or Fund
Managers purchase market based securities, which can be Mutual Funds, Segregated Funds, Pooled, or
Separate Asset. Value of Funds is based upon value of securities traded in the marketplace.
Fund Manager:
Index: A benchmark/standard used to measure performance, e.g., S & P / TSX, S & P 500, MSCI, SCUBI.
Interest: Paid to the lender for the use of his/her money.
Investment Management Fees (IMFs): This is the fee, which is paid to the Fund Manager. All market based
funds have IMFs.
Marketplace: Toronto Stock Exchange, New York Stock Exchange, Tokyo Stock Exchange, Over-The-Counter
(OTC), NASDAQ, etc.
Management Expense Ratios (MERs):
Mutual Funds:
Preferred Shares:
Principal / Capital: This is the money, which you have to save or invest. You can save it in a bank account or
invest in securities.
Risk: The possibility that an investments return will be different than expected. This can be reduced by
diversification. That is, "Don't put all your eggs in one basket!"
Securities: Are what you buy with money. Basic securities are Guaranteed Interest Certificates (GICs) /
Guaranteed Interest Accounts (GIAs), Bonds, Stocks/Shares/Equities, or Cash.
Segregated Funds:
Stocks/Equities/Shares: You use money to purchase a share or part of a company. These shares can be
Common or Preferred.
Style:
Volatility: Price/value changes of an investment. Volatility can be reduced by diversification in your portfolio.
Bonds: You lend your money to a Company or the Government who promise to pay interest over time,
plus they promise to re-pay the original investment.
Cash: This is short-term debt, e.g., 91, 182 day T-Bills, currency such as coins or bills.
Commissions:
Common Shares:
Deferred Sales Charges (DSCs):
GICs/GIAs: Money deposited in Banks, Insurance Companies, Credit Unions. You are paid interest on your
monies over time.
Funds: You and other investors' money is placed in a "bucket" or "pool". Professional Investment or Fund
Managers purchase market based securities, which can be Mutual Funds, Segregated Funds, Pooled, or
Separate Asset. Value of Funds is based upon value of securities traded in the marketplace.
Fund Manager:
Index: A benchmark/standard used to measure performance, e.g., S & P / TSX, S & P 500, MSCI, SCUBI.
Interest: Paid to the lender for the use of his/her money.
Investment Management Fees (IMFs): This is the fee, which is paid to the Fund Manager. All market based
funds have IMFs.
Marketplace: Toronto Stock Exchange, New York Stock Exchange, Tokyo Stock Exchange, Over-The-Counter
(OTC), NASDAQ, etc.
Management Expense Ratios (MERs):
Mutual Funds:
Preferred Shares:
Principal / Capital: This is the money, which you have to save or invest. You can save it in a bank account or
invest in securities.
Risk: The possibility that an investments return will be different than expected. This can be reduced by
diversification. That is, "Don't put all your eggs in one basket!"
Securities: Are what you buy with money. Basic securities are Guaranteed Interest Certificates (GICs) /
Guaranteed Interest Accounts (GIAs), Bonds, Stocks/Shares/Equities, or Cash.
Segregated Funds:
Stocks/Equities/Shares: You use money to purchase a share or part of a company. These shares can be
Common or Preferred.
Style:
Volatility: Price/value changes of an investment. Volatility can be reduced by diversification in your portfolio.
