IFC

Glossary
CANADIAN SECURITIES INSTITUTE (2014) G1

GLOSSARY G3
Account Closing Fees Amortization Assets

A charge levied by some mutual funds Gradually writing off the value of an All things of value that are owned by a
when clients close their accounts. intangible asset over a period of time. firm or individual.
Commonly applied to items such as
Accredited Investor goodwill, improvements to leased Assets Under Management (AUM)
An individual or institutional investor premises, or expenses of a new stock or The assets managed by an investment
who meets certain minimum requirement bond issue. firm.
relating to income, net worth, or
investment knowledge. Also referred to as Amortization Period Auction Market
a sophisticated investor. The period during which the entire Market in which securities are bought and
principal amount of a mortgage loan is to sold by brokers acting as agents for their
Accumulation Plan be repaid to the mortgagee. clients, in contrast to a dealer market
A plan offered by a mutual fund company where trades are conducted over-the-
that enables investors to make automatic Amortized Cost counter. For example, the Toronto Stock
periodic purchases of units of a particular This cost reflects the fact that mortgages Exchange is an auction market.
mutual fund. might have entered the portfolio when the
market rate for them was different from Audit
Acquisition Fee their fi xed rate. A professional review and examination of
See Front-end Load. a companys financial statements required
Annual Information Form (AIF) under corporate law for the purpose of
Active Portfolio Management A document that contains information not ensuring that the statements are fair,
An investment management style included in a simplified prospectus or consistent and conform with International
employed by managers who believe that annual financial statements. Financial Reporting Standards (IFRS).
financial markets present occasional
inefficiencies which can be exploited to Annuitant Auditors Report
earn excess returns. Proponents of this The person on whose life insurance An independent report on the accuracy
approach will try to add value through benefits are based. and validity of a companys financial
strategies such as market timing and statements.
individual security selection. Annuity
A sum of money invested with a life Autorit des marchs financiers
Adjusted cost base insurance company that is paid out to the (AMF)
The deemed cost of an asset representing investor based on a predetermined The body that administers the regulatory
the sum of the amount originally paid plus formula. The annual payouts are framework surrounding Qubecs financial
any additional costs, such as brokerage fees composed of both the initial amount sector: securities sector, the distribution of
and commissions. invested and returns generated. financial products and services sector, the
financial institutions sector and the
Administrative Bodies Appraisal Firms compensation sector.
Provincial and territorial securities Firms that engage in the business of
administrators such as securities collecting mutual fund performance Availability
commissions or other regulatory bodies information and report this information A method that allows people to estimate
that operate within the provincial and on a regular basis. the probability of an outcome based on
territorial governments. Powers and how prevalent or familiar that outcome
operations include registration, disclosure, Arbitrage Transactions appears in their lives.
and investigation and prosecution. The simultaneous purchase and sale of
securities traded on different exchanges. Average
Alpha A statistical tool used to measure the
A statistical measure of the value a fund Arithmetic Mean direction of the market. The most
manager adds to the performance of the A somewhat inaccurate method of common average is the Dow Jones
fund managed. If alpha is positive, the calculating average annual return. It Industrial Average.
manager has added value to the portfolio. involves adding up the annual returns and
If the alpha is negative, the manager has dividing by the number of years. Average Annual Return
underperformed the market. The average of the simple annual returns
Ask Price earned on an investment over a given
Alternative Managed Products The lowest price at which a seller will number of years.
Professionally managed portfolios of basic accept for the financial instrument being
asset classes and/or commodities and quoted. Back-End Load
include segregated funds, hedge funds, A type of sales fee that is paid by the
Asset Allocation investor when the funds are redeemed or
commodity pools, exchange-traded funds, The weight of the various components
income, trusts, closed-end funds and sold. This fee is calculated on either the
(cash, debt, equity, and money market initial purchase value or the current price
principal protected notes (PPN). securities) of an investors portfolio. which includes any increase in value.
CANADIAN SECURITIES INSTITUTE (2014)

G4 INVESTMENT FUNDS IN CANADA
Balance of payments Benchmark Branch Compliance Officer (BCO)

Accounts maintained by a country to An index or fund that enables you to The person responsible for ensuring
record international activities, such as compare the success of a fund or portfolio compliance with the regulatory
foreign trade and international borrowing manager. requirements within the branch by
and lending. Balance of payments monitoring the conduct of the mutual
accounts actually comprise two separate Benchmark Index fund salespeople.
accounts: the Current account and the An index that reflects a mutual funds
Capital account. investment universe and can be used as a Bull Market
standard against which performance can A general and prolonged rising trend in
Balanced Mutual Funds be measured. security prices. Bull markets are usually
Hold a diversified portfolio of different associated with an expansionary phase of
types of securities: bonds, stocks, and Beneficiary the business cycle. As a memory aid, it is
money market securities. Often, the fund The person who will receive the benefits said that a bull walks with his head up
manager will vary the proportions payable under the contract upon death of while a bear walks with his head down.
depending on market conditions. the annuitant.
Business Cycle
Bank Rate Best Practical Allocation The series of short-term fluctuations of
The minimum rate at which the Bank of An asset allocation where the risk and national income over definite periods.
Canada will lend money on a short-term return levels are adjusted based upon a
basis to the chartered banks and other clients behavioural tendencies. A best Call Premium
members of the Canadian Payments practical allocation may slightly Is measured by the difference between a
Association (CPA) in its role as lender of underperform over the long term, but is an securitys par value and the price the issuer
last resort. allocation that the client can comfortably must pay to call it for retirement.
adhere to over the long run.
Bankers Acceptance Callable Preferred
A commercial draft (i.e., a written Beta May be redeemed (called in) upon due
instruction to make payment) drawn by a The standard measure of market risk. It notice by the securitys issuer.
borrower for payment on a specified date. shows how much a security or a portfolio
fluctuates when the market as a whole Canada Education Savings Grants
A BA is guaranteed at maturity by the (CESG)
borrowers bank. As with T-bills, BAs are fluctuates.
An incentive program for those investing
sold at a discount and mature at their face Biases in a Registered Education Savings Plan
value, with the difference representing the Personal beliefs that may lead to irrational (RESP) whereby the federal government
return to the investor. BAs may be sold or emotional choices and decisions. will make a matching grant of a maximum
before maturity at prevailing market rates, of $500 to $600 per year of the first
generally offering a higher yield than Bid Price $2,500 contributed each year to the RESP
Canada T-bills. The highest price at which a buyer will pay of a child under age 18.
for the financial instrument being quoted.
Basis Point Canada Pension Plan (CPP)
A unit equal to 1/100 of 1%. Board of Directors A government sponsored pension plan to
Those that hold the ultimate responsibility which all employed residents in Canada
Bear Market for a mutual funds activities, ensuring
A sustained decline in equity prices. Bear (except Qubec) contribute. Contribution
that the investments are in keeping with to the plans is automatic. Starting from
markets are usually associated with a the funds investment objectives.
downturn (recession or contraction) in the age 65, pensioners receive a modest
business cycle. Bond monthly amount.
A bond is a debt security that may be Canada Premium Bond (CPB)
Bearer Bond issued by either a government or a
A bond that is not registered in the name A relatively new type of savings product
corporation. The issuer of a bond promises that offers a higher interest rate compared
of a particular investor and can be to pay a stipulated rate of interest (coupon
negotiated by any holder. to the Canada Savings Bond and is
rate) and to pay back the principal or par redeemable once a year on the anniversary
Behavioural Biases value at maturity. of the issue date or during the 30 days
Systematic errors in financial judgment or Bond Fund thereafter without penalty.
imperfections in the perception of A fi xed-income fund that invests
economic reality. Canada Savings Bonds (CSBs)
principally in government and corporate A type of savings product that pays a
Behavioural Finance bonds. competitive rate of interest and that is
A field of study that combines psychology guaranteed for one or more years. Not to
and economics to explain why and how be confused with marketable government
investors act and how that behaviour bonds, CSBs do not trade on the
affects financial markets. secondary market they are sold back to
the government at par value plus accrued

GLOSSARY G5
interest at any time. CSBs are registered in Career Average Plan Closed-End Fund
the name of an individual and, because of Pension is calculated as a percentage of an Shares of these funds are bought and sold
their redemption features, are not subject employees earnings over the course of her on the open market. A fi xed number of
to interest rate risk like ordinary bonds. career (while in the plan). Employees may shares are issued and their value depends
contribute a fi xed percentage of their on market demand and on the value of the
Canadian Investment Funds salary (such as 5%) to this type of plan. securities held by the fund.
Standards Committee (CIFSC) Employer contributions required to fund
The body that oversees mutual fund the defined benefit vary according to Code of Ethics
classification. The CIFSC tracks factors such as investment yield, mortality A code that establishes norms based
investment funds on a security-by-security and employee turnover. upon the principles of trust, integrity,
holdings basis. justice, fairness, honesty, responsibility
Carry Forward and reliability.
Canadian Payments Association In the case of RRSPs, it refers to unused
(CPA) contribution room that can be used to Cognitive Bias
A not-for-profit organization that reduce taxable income in future periods. Basic statistical, information processing or
establishes, operates, and maintains In general, unused contributions can be memory errors that are common to all
systems for the clearing and settlement of carried forward indefinitely. human beings. They can be thought of
payments among member financial also as blind spots or distortions in the
institutions on behalf of their clients Cash Account human mind.
individuals, businesses, and governments. An account in which no borrowing is
permitted. Cognitive Dissonance
Capital A state of mental imbalance that occurs
Has two distinct but related meanings. Cash Flow when contradictory cognitions bump into
To an economist, it means machinery, The amount of money coming in from all one another. This can occur when people
factories and inventory required to sources of income and the amount of are presented with information that
produce other products. To an investor, it money going out to pay bills. conflicts with pre-existing beliefs.
may mean the total of financial assets
Cash Flow from Operations/Total Coincident Indicators
invested in securities, a home and other
Debt Ratio Economic indicators that behave similarly
fi xed assets, plus cash.
A ratio that gauges a companys ability to and simultaneously with the economy.
Capital and Financial Account repay the funds it has borrowed. Cash Coincident indicators help economists to
One of the two accounts of the balance of flow/total debt ratio = cash flow / total determine which phase of the business
payments that records the flow of debt. cycle an economy is currently in.
payments between countries to finance the Examples include gross domestic product
Cash Management (GDP), personal income, and retail sales.
acquisition of assets such as stocks, bonds
A central bank process of controlling the
and real estate.
national money supply through the buying Collateral
Capital Gain or selling of bonds in the market. Secures a bond by a pledge of an asset
When an investor sells an asset for more in the case of default.
Chambre de la scurit financire
than its purchase price, a capital gain is
The Chambre is responsible for setting Commercial Paper
realized. Only 50% of capital gains is
and monitoring continuing education A short-term debt security whose issuer
taxable; 50% remains tax free.
requirements and for enforcing a code of promises to pay the maturity value by a
Capital Growth ethics in the province of Quebec. stated date. Commercial paper is issued
An investment with this return objective by very creditworthy companies and is
Client Name Account therefore quite liquid.
will have an appreciable level of risk and
The opposite of a nominee account. A
will be expected to increase in value over
client name account is an account Commodity Pools
the long term. See also Capital Gains.
registered directly in the name of the A special type of mutual fund that can
Capital Loss client of the account with the mutual employ leverage and engage in short
Selling a security for less than its purchase fund. selling using derivatives.
price. Capital losses can only be applied
Client Service Common Shares (Common Stock)
against capital gains. Surplus losses can be
This involves fully understanding and A common share is said to represent
carried forward indefinitely and used
satisfying the unique needs of each client. residual ownership of the issuing company
against future capital gains. Only 50% of
and is therefore entitled to a vote at
the loss can be used to offset any taxable Closed Mortgage shareholder meetings. It does not have
capital loss. Can often be repaid prior to the end of the a stated maturity date and is only paid
term, but a penalty will apply. dividends once preferred shareholders
Closed-End Discretionary Funds have been paid.
Funds that have the flexibility to buy back
their outstanding shares periodically.

Comparison Universe Contribution Room Credit Rating

A collection of portfolios that form the If you do not contribute the maximum The grading of a company based on the
basis for comparison. allowable amount to your RRSP in any companys ability to pay back credit. A
given year, you can carry forward the high credit rating means that the company
Compliance unused contribution indefinitely to future is very likely to pay back loans and is not a
Following the rules, whether those rules years. The contribution room is the default risk.
are legal requirements or dealer policies. annual unused contribution carried
forward. Cumulative Preferred
Composite Leading Index For these shares, dividends not paid in one
A leading index published monthly by the Conventional Mortgage period will accumulate and be paid in a
Macdonald-Laurier Institute which tracks When the amount of the mortgage loan later period.
the performance of the Canadian does not exceed 80% of the appraised
Economy. The MLI index tracks the value of the pledged property. Currency
performance of nine components, and is The money used as a form of payment by
published the last week of every month. Convertible Bond a country.
Can be converted to a given number of
Compounding common shares, generally of the same Currency Forward Contract
The effect of reinvesting (rather than company. Conversion is usually permitted A contract between two parties that locks
spending) the returns on an investment, so during periods determined by the issuer or in the exchange rate for the purchase or
that investors earn a return on a return. the issuer can force conversion if market sale of a currency on a future date.
Concentration Risk conditions warrant it. Current Account

ETFs are not subject to individual stock or Convertible Preferred One of the two accounts of the balance of
sector exposure limits that normally are Can be converted to a given number of payments that records the net trade of
part of a mutual funds investment common shares, generally of the same goods and services, net payments of
objective. If particular sectors have had company. Conversion is usually permitted interest abroad and net transfers between
extraordinarily large gains, then it is during periods determined by the issuer or countries.
possible for the ETF to be highly the issuer can force conversion if market
concentrated in a single stock (in excess Current Assets
conditions warrant it. Are assets that are expected to be
of 10%) or sector (in excess of 40%).
Corporate Bonds converted to cash within one year. Cash or
Confidentiality Are issued by corporations mainly to cash equivalents are also considered
All information concerning the clients finance the acquisition of equipment. current assets.
transactions and his or her accounts must They are subject to interest rate risk but,
be considered confidential and must not Current Income
unlike government bonds, are also subject Earned from fi xed-income funds that
be disclosed except with the clients to default risk. Often, specific assets are
permission, for supervisory purposes or by make regular interest or dividend
pledged as collateral to guarantee payments to the holder. Generally, an
order of the proper authority. repayment of the debt. investor seeking current income has the
Consumer Price Index (CPI) Correlation intention of living off the proceeds.
A measure of the average of the prices paid A statistical measure of the degree to
for a basket of goods and services Current Liabilities
which the returns on a security are Are liabilities that are expected to be
compared to a base year. associated with the returns on another settled within one year.
Contract Holder security.
The owner of a segregated fund contract. Current Ratio
Cost-push inflation A liquidity ratio that is calculated by
Contraction A type of inflation that develops due to an dividing a firms current assets by its
The phase of the economic cycle that increase in the costs of production. For current liabilities.
follows the peak. During a contraction, example, an increase in the price of oil
economic activity declines. may contribute to higher input costs for a Current Yield
company and could lead to higher Is computed by dividing the coupon or
Contractionary inflation. dividend payment for one year by the
A monetary policy that seeks to reduce the current market price of the security. The
size of the money supply. Coupon current yield is used to compare the
The promise made by the bond to make short-term return on different securities.
Contribution In Kind semi-annual payments to the bondholder. For a money market mutual fund it is the
Transferring securities into an RRSP. The last seven days annualized yield; it does
general rules are that when an asset is Coupon Rate
The periodic (almost always semi-annual) not assume compounding of returns.
transferred there is a deemed disposition.
Any capital gain would be reported and interest payment that the issuer of a bond
taxes paid. Any capital losses that result has promised to pay the bondholder.
cannot be claimed.

GLOSSARY G7
Custodian Deemed Disposition Depreciation

Handles the disbursement and receipt of Under certain circumstances, taxation The amount by which the value of fi xed
funds as well as the safekeeping of the rules state that a transfer of property has assets is periodically decreased to reflect
securities. This function is performed by a occurred, even without a purchase or sale, the effects of regular wear and tear.
trust company or bank. e.g., there is a deemed disposition on death
or emigration from Canada. Derivatives (Derivative Securities)
Cyclical unemployment A security whose value is determined by
The type of unemployment that rises Default Risk the value of some other security or asset.
when the economy weakens and falls when This is the risk that a mortgage, bond, or An example of a derivative would be an
it recovers. preferred share will not make its option or a future.
anticipated interest or dividend payment,
Dealer Market or principal will not be repaid at maturity Direct Distribution
A market in which securities are bought (in the case of mortgages and bonds). A mutual fund company that has its own
and sold over-the-counter in which dealers centralized order-taking department and
acts as principals when buying and selling Deferred Sales Charge sales staff is said to engage in direct
securities for clients. Also referred to as the See Back-End Load. distribution.
unlisted market.
Defined Benefit Plan Directional Strategies
Death Benefits A type of employer-sponsored pension Hedge fund strategies that bet on
In a segregated fund, the contract holders plan that allows the employee to anticipated movements in the market
beneficiary or estate is guaranteed to determine the amount of the eventual prices of equities, debt securities, foreign
receive payouts amounting to at least the pension benefits with relative accuracy. currencies and commodities.
original premiums invested by the contract Generally, the benefits are a given
holder, excluding sales commissions and percentage of the employees salary and are Disclosure
certain other fees. The amount of the often based on the number of years of Includes insider reports, regular corporate
death benefit is equal to the difference, if service. financial reports, timely disclosure of
any, between the net asset value of the material changes in the affairs of a
fund and the original amounts invested. Defined Contribution (Money company and examination of all
Purchase) Plan prospectuses to ensure that there is full,
Debentures A type of employer-sponsored pension true and plain disclosure. Proper
Are bonds that have no assets pledged as plan that does not allow the employee to disclosure allows investors to make
collateral in the case of default. determine the amount of the eventual informed choices.
pension benefits in advance. The benefits
Debt Instruments received depend on how successfully the Discount
Money borrowed from lenders for a variety contributions have been invested over the Occurs when the price of a mutual fund is
of purposes. The borrower typically pays years. The employee and the employer below its net asset value.
interest for the use of the money and is both contribute to the plan.
obligated to repay it at a set date. Discouraged Workers
Deflation Individuals that are available and willing
Debt Security A decrease in the general price level of to work but cannot find jobs and have not
A debt security, such as a bond, evidences goods and services in a country. Deflation made specific efforts to find a job within
a loan which has been made by the occurs when the inflation rate falls the previous month.
investor to the issuer. The issuer of a debt below 0%.
security essentially borrows money from Discretionary Funds
the investor and thereby incurs a debt. Demand Savings that are not needed for day-to-day
The tendency of consumers to buy more of living.
Debt/Equity Ratio a good when its price decreases and less
A financial leverage ratio that determines Discretionary Income
when its price increases. The amount of money coming in from
the relationship of debt to equity.
Demand-pull inflation employment and other sources minus the
Declaration of Trust Inflation that occurs when demand in an amount of money going out to pay bills.
A legal document establishing the funds economy outpaces supply.
structure, indicating its principal Discretionary Trading
investment objectives, investment policy, Deposit-Taking Institution Any purchase or sale where the sales
any restrictions on the funds investments, Companies, such as banks and trust representative determines the timing and/
who the funds trustee, manager and companies, that pool the deposits of or price of a sale or purchase.
custodian will be, and the classes or series thousands of savers and then invest those Disinflation
of units the fund may have, among other funds in different types of investments. A decline in the rate at which prices
things. rise i.e., a decrease in the rate of
inflation. Prices are still rising, but at a
slower rate.

Diversification Duty of Care Electronic Document

The process of reducing investment risk by A legal obligation imposed on mutual Data recorded or stored in a computer
investing in different types of securities funds representatives requiring that they system or other similar device and that can
issued by companies active in different adhere to a standard of care while be read or perceived by a person or a
industries. Ideally, these securities will not performing any acts that could foreseeably computer system or other similar device.
all have the same response to economic harm others. This includes displays, printouts and other
and other events as some decrease, output of that data.
others will hopefully increase. Earned Income
For an individual, it includes all income Electronic Signature
Dividend Fund from employment but it excludes income A signature in digital form that is
A type of fi xed-income fund that holds from investments and any pension or incorporated in, attached to, or associated
dividend paying common shares and unemployment benefits received. with an electronic document.
possibly preferred shares. Dividend funds
are distinguished from preferred dividend Earnings Per Common Share Emotional Bias
funds by the fact that they tend to hold (EPS) The opposite illogical or distorted
mostly common shares. A shareholder ratio that is calculated by reasoning. An emotion is a mental state
dividing net income by the number of that arises spontaneously, rather than
Dividend Income common shares outstanding. Shareholders through conscious effort. Emotions are
The dividends received from an like to see consistent increases in EPS over physical expressions, often involuntary,
investment in common and preferred time. related to feelings, perceptions or beliefs
shares. about elements, objects or relations
Earnings Per Common Share between them, in reality or in the
Dividend Tax Credit (DTC) (EPS) Ratio imagination.
Refers to the preferential tax treatment A value ratio that ratio shows the earnings
granted to dividend income (common and available to each common share. Endowment
preferred) received from taxable Canadian People who are subject to endowment bias
corporations. The dividend is grossed up Economic Indicators place more value on an asset they hold
by 38% and the tax credit of 15.02% is These are a group of statistics that provide property rights to than on an asset they do
calculated based on this amount. information about the direction and level not hold property rights to.
of activity of the economy.
Dividend Yield Equilibrium price
Dividends earned during ownership Effective Yield The price at which the quantity demanded
of shares. In the case of money market mutual equals the quantity supplied.
funds, this calculation makes the
Dollar Cost Averaging assumption that the yield generated over Equity (Equity Instruments)
Involves periodically (e.g., monthly) the last seven days will remain constant for An investment instrument that provides
purchasing a fi xed dollar amount of one year into the future. It assumes weekly an ownership stake in a company.
mutual fund units. As the unit price compounding of returns at that rate.
fluctuates, so will the number of units Equity Growth Fund
purchased. By investing regular dollar Efficient This type of fund seeks out smaller firms
amounts in an increasing market, the If markets are efficient, the prices of that are expected to pay little or no
average cost per unit tends to be lower over securities reflect all the information that dividends and to produce significant
the long run. exists about them. capital gains as their share prices increase.
As a result, equity growth mutual funds
Drawdowns Efficient Market tend to have a lot of volatility and are
A transfer of deposits from the chartered The prices of stocks or securities reflect all suitable for investors with higher risk
banks to the Bank of Canada. of the information that may exist about tolerance.
those stocks or securities.
Dual Employment Equity Index Fund
Persons that are dually registered as Electronic Commerce Has the primary goal of earning capital
mutual fund sales representatives and life (E-commerce) gains by constructing a portfolio designed
insurance agents. Business activities, such as purchasing, to mimic a particular stock market
distribution, sales, and other transactions, index often the S&P/TSX Composite
Duration that take place by means of advanced Index in Canada.
A measure of a bond or a bond portfolios communications and computer
sensitivity to changes in interest rates. The technologies. Equity Mutual Fund
higher (lower) the duration, the greater Seeks to earn some combination of current
(smaller) the change in the value of a bond dividend income and capital gains. It
in response to a given change in interest generally invests in common shares of
rates. larger firms with strong dividend records
and limited capital gains potential.

GLOSSARY G9
Ethical Conduct Explicit Costs Financial Markets

The conduct of complying not only with Costs that are directly borne by the The mechanism through which suppliers
the letter of the law but also with the spirit investor. They fall into three categories: and users of capital are matched.
of the law. management fees, operating expenses and
sales charges. Financial Planner
Ethical Responsibility A professional holding a recognized
The responsibility of the investment guide Extra Dividend designation (CFP, ChP or PFP) who
to ensure that the clients needs are A dividend paid in addition to the regular assists clients in establishing and reaching
respected and placed before the guides dividend. financial goals by analysing current
own needs (e.g., attaining a sales target) finances and making recommendations on
and those of the employer. Fairness reaching financial goals. The Mutual
All relevant information that might have Funds Sales Representative is not expected
Ethics an impact on an investors decision to buy to play the role of financial planner.
The moral principles that go beyond or to sell must be fully disclosed.
prescribed behaviour and addresses Financial Planning Pyramid
situations where rules are unclear or Final Average Plan A visual aid that can be used to help build
contradictory. Bases the pension on an employees length a financial plan and prioritize decision
of service and average earnings over a making around asset choices.
Event-Driven Strategies stated period of time. Often this is the
Hedge fund strategies that seek to profit average of the best five consecutive years of Financial Statement Analysis
from unique events such as mergers, earnings in the last 10 years of The process of examining and working
acquisitions, stock splits and stock employment, or the average of the best with the firms financial accounting
buybacks. three consecutive years of earnings over information in order to assess value and
the last five years of employment. financial soundness.
Excess Returns
The possibility of returns above those Final Good First-Order Risks
needed to compensate for the risk of an A finished product that is purchased by Risks associated with the direction of
investment. Undervalued stocks offer the the ultimate end-user. interest rates, equities, currencies and
possibility of excess returns. commodities. Broadly speaking, it refers
Financial Action Task Force to market-induced risk, or systematic risk.
Exchange Rate (FATF)
The price at which one currency exchanges An inter-governmental body whose Fiscal Policy
for another. purpose is to develop and promote A deliberate action by a government
national and international policies to (federal, provincial or territorial) to
Exchange Rate Risk combat money laundering and terrorist influence the economy through changes
The risk that an unexpected change in financing. either in spending or in taxation
exchange rates will alter the value of initiatives.
foreign assets or cash payments expected Financial Circumstances
from a foreign source. This type of risk Include the size of the clients investment Fiscal year
applies to global mutual funds. See also portfolio, employment and investment A companys accounting year. Due to the
Foreign Exchange Risk. income, whether the source of nature of particular businesses, some
employment income is secure, and the companies do not use the calendar year for
Exchange-Traded Funds (ETFs) level of periodic expenses incurred. their bookkeeping. A typical example is
Baskets of securities traded like individual the department store that finds
stocks on an exchange. ETFs are similar to Financial Goals and Objectives December 31 too early a date to close its
index mutual funds in that they will A clients reasons for selecting a given books after the Christmas rush and so
primarily invest in the equities of investment. May be expressed in terms of ends its fiscal year on January 31.
companies that compose the target index, the types of desired returns (e.g., growth,
but the way in which an ETF is structured interest income) or in terms of desired Fixed Assets
allows it to be far more tax efficient than investment characteristics such as safety or Are those assets that are expected to last
an index mutual fund. liquidity. longer than one year.
Expansion Financial Intermediaries Fixed Trust

The phase of the economic cycle that Suppliers and users of capital access the An unmanaged pool of debt securities that
follows the trough. During an expansion, markets through the chartered banks, all mature at the same time. The pool is
economic activity increases. trust companies, life insurance companies, created by an investment dealer who then
and investment dealers. These financial sells units of the pool to investors. Unlike
Expansionary intermediaries can be either deposit-taking a bond fund, a fi xed trust has a limited
A monetary policy that seeks to increase or non-deposit-taking institutions. life.
the size of the money supply.

Fixed-Dollar (Constant) Front-End Load Global Equity Funds

Withdrawal Plan A sales fee that the investor pays when the A type of global mutual fund that earns
A type of systematic withdrawal plan that fund is purchased. This fee is generally not dividends and capital gains.
allows investors to receive a periodic fi xed charged by banks or trust companies and
amount of money through the redemption is based on the dollar value invested. Global Mutual Funds
of units of their mutual fund. These funds offer international
Fund Distributors diversification by investing in the
Fixed-Income Funds Represents the link between a mutual economies of specific countries or regions
Consist of fi xed-income securities. fund and the investing public. A funds anywhere in the world, including Canada.
Fixed-income funds share the goal of distributor is often its investment
generating current income. company. Government Bond
A debt security that is issued by the
Fixed-Income Securities Fund Facts federal, provincial, and municipal
Are securities that generate predetermined A short mutual fund document designed governments in order to finance public
periodic interest or dividend income. They to give investors key information that is spending. These bonds trade OTC, they
include government and corporate bonds, relevant to their investment decisions, have a wide range of maturities, and they
mortgages, and preferred shares. including facts about the fund itself, are considered to have little or no default
performance history, investments and the risk.
Fixed-Period Withdrawal Plan costs of investing in the fund.
A systematic withdrawal plan that allows Gross Domestic Product (GDP)
the mutual fund investor to receive money Fund Manager The market value, in current dollars, of all
such that over a specified period the Provides day-to-day supervision of the goods and services produced within a
mutual fund will be completely paid out. funds investment portfolio. country in one year. GDP includes the
value of all goods and services produced
Flat Benefit Plan Fund of Funds by Canadian citizens and foreigners living
An employees monthly pension is a The investor owns units of a pool of in Canada and does not include the value
specified number of dollars for each year mutual funds. of goods and services produced by
of service. Canadian citizens and businesses abroad.
Fund Sponsor
Forecast The mutual fund investment firm. Gross Profit
To estimate the cash flow to be earned The excess of sales revenues over the costs
during the year as well as the price you Fund Wrap
A program that provides a series of that were incurred to produce or acquire
think that you could sell a security for at the goods that were sold.
the end of the year. portfolios with multiple mutual funds to
reflect pre-selected asset allocation models. Gross Profit Margin Ratio
Foreign Exchange Risk It can be a fund of funds or a portfolio An operating performance ratio that
The risk that an unexpected change in allocation service. shows the companys rate of profit after
exchange rates will alter the value of allowing for cost of goods sold.
foreign assets or cash payments expected Fundamental Analysis
from a foreign source. This type of risk Security analysis that attempts to Growth at a Reasonable Price
applies to global mutual funds. determine the true or intrinsic value of a (GARP)
security by examining the fundamentals A value approach to buying earnings
Foreign Investors such as sales, earnings, economic changes, growth. GARP managers, like growth
Retail or institutional investors who reside competitive forces, and management. managers, seek companies with
outside of a country, but invest in that projections of growing earnings and high
country. Futures Contract
A transferable agreement to deliver or take and increasing ROEs (return on equity)
Frequent trader delivery of a fi xed quantity of an asset for a relative to the industry average. Unlike
Individuals who buy and sell mutual fund specific price by a specific future date. growth managers, GARP managers avoid
units actively, sometimes holding positions stocks with high P/Es (price/earnings
for as little as one day. Geometric Mean ratios) and P/Bs (price-to-book ratios).
A calculation that determines the average
Frequent Trading Charge compound return over several time Growth Investing
Is assessed by some mutual funds to periods. A form of equity investing that is more
discourage investors from redeeming their concerned about the future prospects of a
units shortly after purchase or from Glide path firm than its present price.
switching between funds. A formula that defines the change in the
asset allocation mix of a target date fund
Frictional unemployment over time, based on the number of years
The result of the labour turnover in a remaining to the target date. The closer
normal, healthy economy, where people the target date, the more conservative the
enter and leave the workforce and jobs are asset mix.
created and terminated.

GLOSSARY G11
Guaranteed Investment Certificate Hurdle Rate Interest Coverage Ratio

(GIC) The rate that a hedge fund must earn A financial leverage ratio that reveals the
A deposit instrument most commonly before its manager receives an incentive ability of a company to pay the interest
available from trust companies, requiring fee. Hurdle rates are usually based on charges on its debt and indicates how well
a minimum investment at a predetermined short-term interest rates to reflect the these charges are covered, based upon
rate of interest for a stated term. Generally opportunity cost of holding risk-free assets earnings available to pay them.
nonredeemable prior to maturity but there such as T-bills.
can be exceptions. Interest Income
Hybrid Security Income earned on fi xed-income securities.
Guaranteed Minimum Withdrawal Securities, usually preferred shares,
Benefit plan that have features of both bonds and Interest Rate Anticipation
A GMWB plan is similar to a variable common shares. A fi xed-income investment philosophy
annuity. With a GMWB, the client that involves moving between long-term
purchases the plan, and the GMWB Implicit Costs government bonds and very short-term
option gives the planholder the right to Trading costs, which are measured by T-bills based on a forecast of interest rates
withdraw a certain fi xed percentage (7% is brokerage fees and turnover. over a certain time horizon. Price
typical) of the initial deposit every year sensitivity to interest rate movements
Incentive Fees increases as the term to maturity increases
until the entire principal is returned, no Fees that are usually calculated after the
matter how the fund performs. and the coupon decreases.
deduction of management fees and
Hedge Funds expenses and not on the gross return Interest Rate Risk
Lightly regulated pools of capital run by earned by the manager. The basic feature of interest rate risk is
managers that have great flexibility in that as interest rates rise (fall), the value
Independent Review Committee of all fi xed-income securities will
applying their investment strategies. Under National Instrument 81-107, decrease (increase).
Hedging mutual funds must have an independent
The process of reducing the risk of loss review committee which is required to Interest Rates
from fluctuations in market prices either approve or consider conflicts of For consumers, interest rates represent the
effectively locking in the value of a interest that are identified by the manager gain from deferring consumption from
portfolio. Derivative securities can be used of the fund. today to tomorrow via saving. For
for this purpose. businesses, interest rates represent the cost
Inflation of borrowing money.
High-Water Mark A generalized, sustained trend of rising
A fund manager is paid an incentive fee prices. International Funds
only on net new profits. In essence, a Mutual funds that invest anywhere in
Initial Public Offering (IPO) the world except in Canada.
high-water mark sets a bar (based on the An issuing by a company that has never
funds previous high value) above which issued shares before. It requires an Interval Funds
the manager earns incentive fees. estimate of an appropriate offering price See Closed-End Discretionary Funds.
Holding Period Return for the shares.
Inventory Turnover Ratio
A transactional rate of return measure that Insider An operating performance ratio that
takes into account all cash flows and An individual with inside information of measures the number of times a companys
increases or decreases in a securitys value material significance about his company inventory is turned over in a year. It may
for any time frame. Time frames can be that has not yet been made public. also be expressed as a number of days
greater or less than a year. required to achieve turnover.
Insider Trading
Holdings-Based Style Analysis The act of trading in securities based on Investigation and Prosecution
Examines each stock in the portfolio and undisclosed material non-public Violations are carefully scrutinized and
maps it to a style at a specific point in information. offenders may be prosecuted; the
time. commission has the authority to subpoena
Instalment Debenture witnesses, seize documents for
Household Budget A bond or debenture issue in which a
Outlines the individual or family income examination and assume many functions
predetermined amount of principal of an administrative tribunal. The
and expenditures on a periodic basis with matures each year.
the intention of determining how much securities commission may also prosecute
money will be available for savings and Institutional Investor an action against a violator. This may
investment. A legal entity that represents the collective result in the levy of a substantial fine and/
financial interests of a large group. A or imprisonment.
mutual fund, insurance company, pension
fund and corporate treasury are just a few
examples.

Investment Company iShares CDN S&P/TSX 60 Index Life Annuity

The firm that receives the management Fund An annuity whose payments are
fees from each of the mutual funds Units are traded on the Toronto Stock guaranteed as long as the investor lives.
under its control. The investment Exchange and are bought and sold
company is responsible for hiring through stockbrokers. The S&P/TSX 60 Life-Cycle Hypothesis
investment managers and for organizing is composed of 60 of the largest The basis of the hypothesis is that as
the distribution of the funds. Canadian firms. people age, their objectives, financial and
personal circumstances, and risk tolerance
Investment Dealer January Effect change as well. Though the hypothesis is
May act on the clients behalf as agent Stocks in general, and small stocks in not infallible, it can facilitate the task of
in the transfer of instruments between particular, that move abnormally higher knowing your client.
different investors, and may also act as during the month of January.
principal. Investment dealers are also Life Income Fund (LIF)
referred to as brokerage firms or Know Your Client A termination option available to holders
securities houses. The mutual fund advisor must use due of locked-in pension funds such as a
diligence to learn the essential facts LIRA. A LIF is similar to a RRIF but it
Investment Fund relevant to every client and every order. has both a minimum and a maximum
Offers investors an interest in a pool of Information concerning the clients annual withdrawal requirement. Funds
securities. Mutual funds are a type of financial status (both income and net from a standard RRSP are not transferable
investment fund. worth), family and other commitments, as to a LIF.
well as financial goals, is required in order
Investment Horizon to make an appropriate investment Life Insurance
The length of time within which an recommendation. A contract between an insured holder and
investor expects a given investment to an insurer, where the insurer promises to
satisfy his investment or return objectives. Know Your Product pay a designated beneficiary a sum of
Understand the characteristics (e.g. risk money in exchange for a premium, upon
Investment Industry Regulatory level, fees, type of income generated, and the death of the insured person.
Organization of Canada (IIROC) tax consequences) of all the funds offered
The Canadian investment industrys for sale. Life Withdrawal Plan
national self-regulatory organization. Similar to the fi xed-period plan, except the
IIROC carries out its regulatory Labour force period selected is the expected remaining
responsibilities through setting and The sum of the population aged 15 years lifetime of the investor.
enforcing rules regarding the proficiency, and over who are either employed or
business and financial conduct of dealer unemployed. Limit Order
firms and their registered employees and An order to buy or sell a security at a
through setting and enforcing market Lagging Indicators specific price or better.
integrity rules regarding trading activity An economic indicator that measures that
change after an economy has passed Limited Partnership
on Canadian equity marketplaces. A type of partnership whereby a limited
through a phase in the business cycle.
Investment Knowledge partner cannot participate in the daily
How familiar an investor is with the risk Leading Indicators business activity and liability is limited to
and return characteristics of securities. An economic indicator that helps to the partners investment.
determine which phase of the business
Investment Manager cycle is likely to occur in the future. Liquidity
(also known as a portfolio manager) Is Refers to the readiness with which an asset
responsible for constructing and managing Legal Responsibility can be sold without requiring the seller to
the investment portfolios that make up the The responsibility of the investment guide make a large price concession.
various mutual funds managed by an to ensure that each client buys only
suitable investments. All provincial Liquidity Ratio
investment company. A financial ratio that attempts to
securities acts make this legal
Investment Policy Statement responsibility clear. determine a firms ability to meet its short
The statement that guides the overall asset term liabilities from its current assets. See
management of the mutual fund portfolio. Leverage Current Ratio.
The use of borrowed funds to invest.
Investment Portfolio Load
The fundamental characteristic is that it is Liabilities Sales commission charged to individual
a diversified collection of securities. Those The obligation to provide goods, services, investor. See Back-End Load and
securities may include stocks, bonds, or cash at some time in the future. Simply Front-End Load.
money market securities, and even stated: what is owed by a firm or an
derivatives. individual.

GLOSSARY G13
Locked-In Retirement Account Management Expense Ratio (MER) Market Risk

(LIRA) A calculation that is required under Refers to the risk of fluctuations in the
When a registered pension plan is National Instrument 81-102. It allows market as a whole if the stock market is
terminated prior to retirement (e.g. when investors to compare the level of in a slump, this will influence a fund that
an individual changes employers), plan management fees and expenses from one invests in stocks. Even a highly diversified
funds may be transferred to a LIRA. The fund to another. It includes both mutual fund has market risk.
funds cannot be withdrawn before the management fees as well as fund expenses.
holder reaches a designated age. Market Sentiment
Management Fees The overall attitude of investors toward a
Lock-Limit Up These fees are charged by all mutual funds particular stock or the stock market in
When a commodity contract has reached and are deducted from the fund itself to general.
its permitted daily price limit on the pay the fund managers or investment
upside, the commodity is said to trade advisory services. Market Timing
lock-limit up. When lock-limit up (or The act of shifting from one class of
lock-limit down on the downside), trading Margin security to another (e.g. from bonds to
can only take place at the lock-limit up The amount that an investor is required to stocks) based on expectations of where the
price or lower on that day. leave on deposit when using borrowed economy or the markets may be heading.
funds to purchase securities. The margin
Locked-In RRSP is usually a fi xed percentage of the value of Marketable Government Bond
The holder of a locked-in plan cannot the securities. Bonds for which there is a ready market
withdraw any of the money until the (i.e., clients will buy them because the
holder reaches a particular age depending Margin Account prices and features are attractive).
upon the province of residence. An account that uses money borrowed
from a stockbroker to buy securities. Material Fact
Long Position A fact that, if correctly stated, would likely
Signifies ownership of securities. I am Marginal Tax Rate lead investors to change their purchase
long 100 BCE common means that the Refers to the rate of tax to be paid on the decision.
speaker owns 100 common shares of next dollar of income earned from any
source. Maturity date
BCE Inc. The date at which the bondholder expects
Long-Term Liabilities Market to get the par value of the bond back.
Are liabilities that are not likely to be paid Any arrangement whereby products and
services are bought and sold, either Maturity Guarantee
off within one year. The minimum dollar value of the contract
directly or through intermediaries.
Loss Aversion after the guarantee period, usually 10
A stronger impulse to avoid losses than to Market Efficiency years. This amount is also known as the
acquire gains. This hypothesis argues that all available annuity benefit.
information about the markets is reflected
Macroeconomics in market prices, which is to say that it is Mean
The field of assessing the performance, impossible to earn excess returns by simply A central value of a set of numbers. Or, the
structure and behaviour of the economy as using publicly available information. sum of the values divided by the number
a whole. of values. Also known as the average.
Market Order
Managed Futures An order to buy or sell a security at the Microeconomics
Involves the active trading of derivatives current market price. Refers to how the individual is affected by
products and strategies on physical changes in prices or income levels.
commodities, financial assets and Market Ratios
See Value Ratios. Momentum Investing
currencies. A form of equity investing where
Managed Products Market Review proponents believe that strong gains in
Professionally managed portfolios of basic A section of mutual fund financial earnings or stock price will translate into
asset classes and/or commodities. statements where the fund manager stronger gains in earnings or stock price.
Components of managed products could explains what has happened to rates, and
therefore the performance, of the fund Monetary aggregates
include segregated funds, hedge funds, An aggregate that measures the quantity
commodity pools, closed-end funds and over the recent past, and why. The fund
manager also provides a forecast or of money held by a countrys households,
principal protected notes (PPN). firms and governments. It includes various
outlook for the fund over the next few
months. forms of money or payment instruments
grouped according to their degree of
liquidity.

Monetary Policy Mutual Fund Dealer Association Net Worth

The regulation, by a Government, of the (MFDA) Whatever an individual has accumulated
money supply and available credit for the The Self-Regulatory Organization (SRO) to date is his net worth. It is the difference
purpose of promoting sustained economic that regulates the distribution (dealer) side between the total assets and the total
growth and price stability. of the mutual fund industry in Canada. liabilities of an individual what is
owned less what is owed.
Money Laundering Mutual Fund Sales Representative
The fact of accepting cash (or assets) Individuals who are licenced to sell and New Account Application Form
obtained illegally and making it appear provide advice on mutual funds products (NAAF)
legitimate. It is a criminal offence to their clients in the province or territory A form that is fi lled out by the client at the
punishable under Canadas Criminal where they have been licenced. opening of an account. It gives relevant
Code. information to make suitable investment
National Instrument 81-101 recommendations. The NAAF must be
Money Market Funds A law adopted by the Canadian Securities completed and approved before any trades
These are considered to be the lowest risk Administrators (CSA) and followed are put through on an account.
of all mutual fund investments. The fund throughout the country. It specifies the
invests in money market securities, such as required structure and content of the No-Load Funds
T-Bills and commercial paper. mutual fund simplified prospectus. This type of fund charges no sales fee and
is predominately offered by subsidiaries of
Money Purchase Plan National Instrument 81-102 financial institutions.
A type of Registered Pension Plan; also A law adopted by the Canadian Securities
called a Defined Contribution Plan. In Administrators (CSA) and followed Nominal GDP
this type of plan, the annual payout is throughout the country. It is a wide- The dollar value of all goods and services
based on the contributions to the plan and ranging set of rules that deals with all produced in a given year at prices that
the amounts those contributions have aspects of the creation and management of prevailed in that same year.
earned over the years preceding mutual funds.
retirement. In other words, the benefits are Nominal interest rate
not known but the contributions are. National Registration Database The quoted or stated rate on an investment
Database for registration of applications or a loan. This rate allows for comparisons
Money supply for mutual fund salespeople. but does not take into account the effects
The total amount of money available in an of inflation.
economy at a specific time. Natural Resource Funds
A type of specialized fund that invests in Nominal Return
Mortgage the securities of companies engaged in The return on an investment that has not
Essentially includes an obligation by the natural resource industries. Examples of been adjusted for inflation. In the case of a
mortgagor to pay stipulated amounts on a such industries include mining, oil and bond it is simply the coupon rate.
debt that is secured by a pledge of gas, and forest products.
property. Nominee account
Natural unemployment rate An account registered in the name of
Mortgage Fund Also called the full employment a dealer or third-party administrator on
Consists of a diversified portfolio of unemployment rate. At this level of behalf of the beneficial owner of the
residential and some commercial unemployment, the economy is thought to mutual fund.
mortgages. Some mortgage funds limit be operating at close to its full potential or
mortgages held to those insured under the capacity. Nominee owner
National Housing Act (NHA). Default A person or firm (bank, investment dealer,
risk is lowered still by the fact that Net Asset Value Per Unit CDS) in whose name securities are
mortgages that are in default will often be (NAVPU) or Net asset value per registered. The shareholder, however,
purchased by the investment companys share (NAVPS) retains the true ownership of the
parent firm (i.e. the bank that booked the It is the net assets of the fund divided by securities.
mortgage). the number of units outstanding.
Non-Conventional Mortgage
Mutual Fund Net Profit Margin A mortgage that exceeds 80% of the
An unlimited number of units are issued A profitability ratio that indicates how appraised value of the property. This type
by the fund and they are bought and sold efficiently the company is managed after of mortgage requires mortgage insurance
directly by the fund itself. The value of a taking into account both expenses and under the National Housing Act.
unit is not determined by market demand taxes.
but by the net asset value of the securities
in the funds portfolio.

GLOSSARY G15
Non-Deposit-Taking Institution Option contract Participating Preferred

Companies, such as life insurance A derivative security which gives the Holders of this type of share receive an
companies, that do not take deposits. holder the right, but not the obligation, to additional dividend if, after paying a
They acquire capital by pooling the buy or sell the underlying asset within a dividend to common shareholders, profits
premiums from policies they issue to fi xed period for a fi xed price. still remain.
individuals and then invest those
premiums in capital market securities. In Option Premium Participation Rate
this way, they provide sufficient funds to This is the price an investor pays for The share of the working-age population
satisfy the claims of policy holders. an option. in the labour force. The participation rate
shows the willingness of people to enter
Odd Lot Organized Exchange the workforce and take jobs.
A transaction in less than a board lot. The location (either physical or electronic)
where buyers and sellers of securities are Passive Portfolio Management
Offering Memorandum systematically matched. An investment management style
A document that provides detailed employed by managers who believe that
disclosure, similar to a prospectus, but Output gap financial markets are efficient (that is, all
that is not reviewed by any regulatory The difference between real GDP (actual available information is reflected in the
agency and that does not provide investors production) and potential GDP (what the price of a security) and therefore present
with the same legal remedies. economy is capable of producing). no opportunity to earn significant excess
Economists use the output gap as an returns. Proponents of this approach will
Old Age Security (OAS) indicator to measure inflationary seek to match the performance of a market
Pension is payable at age 65 to all pressures. segment or index by mimicking its risk
Canadian citizens and legal residents and return characteristics. Unlike active
including landed immigrants and those Overconfidence
Unwarranted faith in ones intuitive managers, passive managers do not try to
with visitors permits. add value through strategies such as
reasoning, judgments and cognitive
Open Mortgage abilities. market timing and individual security
A type of mortgage that, at any time selection.
before the end of the term, can be repaid Over-Contribution
An investment into an RRSP that exceeds Peer Group
by the mortgagor (the borrower) without A group of managed products (particularly
penalty. the allowed amount of contribution. The
over-contribution is not tax deductible, mutual funds) with a similar investment
Open-Ended Mutual Fund (Open- and the individual may be subject to a mandate.
end Fund) penalty if the over-contribution exceeds a Perfect Negative Correlation
See Mutual Fund. cumulative lifetime over-contribution The patterns of returns of different
limit of $2000. classes of securities are mirror images
Open-End Trust
The trust structure enables the fund to Overnight Rate of each other, with the peaks of one
avoid taxation. Any interest, dividends or The interest rate that is set in a security corresponding with the
capital gains income, net of fees and marketplace called the overnight market troughs of the other.
expenses, is passed on directly to the unit where major Canadian financial Perfect Positive Correlation
holders. The fund does not incur tax institutions lend each other money on an The patterns of returns of different classes
liability. overnight basis. of securities match each other, with the
Open-market Operations Over-the-Counter (OTC) Market peaks of one security corresponding with
Method through which the Bank of The OTC market has no physical location the peaks of the other.
Canada influences interest rates by trading as such. It is really a large computer Performance Assessment
securities with participants in the money network through which investment dealers The process of comparing a mutual fund
market. negotiate transactions among themselves. managers results with those of an
Most bonds trade OTC but the shares of established and reliable benchmark to
Operating Expenses some small and large companies can also
In the case of a mutual fund, it refers to determine if there has been a
be traded OTC. comparatively good return on
expenses that arise from the day-to-day
activities of the fund. Examples include Par Value investment.
brokerage fees, securities fi ling fees, audit This is the face value or the stated value of Performance Averaging Formulas
fees and administrative expenses. a bond or a preferred share. Securities may The method by which a PPNs final payoff
trade above, below, or at their par value. is based not on the value of the underlying
Operating Performance Ratios
Ratios that illustrate how well asset at maturity, but on some average
management is making use of the performance of the underlying asset over
companys resources. These ratios include the life of the note.
profitability and efficiency measures.

Performance Participation Cap Portfolio Allocation Service Preferred Shares

A principal protected note with a A type of fund wrap where the client owns Preferred shareholders will receive a fi xed
performance participation cap promises to units of several mutual funds in the dividend before common shareholders.
pay the return earned by some particular proportions established through the They are granted voting rights only under
asset up to a maximum amount. allocation service. special circumstances, and will receive a
predetermined dollar amount (par value)
Performance Universe Portfolio Asset Allocation should the company dissolve.
A large number of other mutual funds This refers to the selection of the classes of
with similar characteristics against which securities to be held the proportions of Premium
a mutual fund can be compared. equities, debt securities, and money The price of a fund is above the net
market securities. asset value.
Perpetual Preferred
A unique type of preferred security that Portfolio Funds Price-Earnings Ratio (P/E)
has no maturity date. Mutual funds that invest in other funds A shareholder ratio that shows how much
instead of buying securities directly. investors are willing to pay for the current
Personal Circumstances earnings of a firm and what they believe
These include clients age, whether they Portfolio Investment Objectives the firms growth prospects are. It is
are single or married, how many children Are most often presented in terms of the calculated by dividing the current price
they have, and what kind of lifestyle they types of return that the portfolio should per common share by the current EPS.
wish to maintain. They have a major generate and, indirectly, the level of risk
impact on the ability of the investor to that will be assumed in order to earn those Primary Market
bear risk and on the financial goals returns. This is the market for newly issued and
selected. underwritten securities that have never
Portfolio Manager been offered to the public.
Personal data A professional investor who selects the
The personal information of a person that securities that belong to the portfolio. Principal Protected Note (PPN)
may include age, marital status, number of A debt instrument. It has a maturity date
dependants, risk tolerance and health and Potential GDP upon which the issuer agrees to repay
employment status. The goods and services an economy is investors their principal. In addition to the
capable of producing when its existing principal, PPNs provide interest paid
Personal Information Protection inputs of labour, capital, and technology either at maturity or as regular payments
and Electronic Documents Act are fully employed at their normal levels linked to the positive performance of the
(PIPEDA) of use. underlying PPN asset. The underlying
The Act that provides protection for assets can be common stocks, mutual
personal information and grants legal Pre-Authorized Contribution Plan
(PAC) funds, stock indices, commodities or
status to electronic documents. hedge funds.
Automatic purchase plans or
Phillips curve contributions, where investors can Privacy Commissioner
A graph showing the relationship between purchase units in regular installments The federal law establishes a Privacy
inflation and unemployment. The theory throughout the year. Commissioner as an oversight mechanism.
states that unemployment can be reduced Consumers have the right to fi le a
in the short run by increasing the price Pre-Authorized Investment Plan
See Voluntary Accumulation Plan. complaint about any aspect of compliance
level (inflation) at a faster rate. Conversely, with PIPEDA. Clients are entitled to fi le a
inflation can be lowered at the cost of Precious Metals Funds complaint against a financial institutions
possibly increased unemployment and Specialized mutual funds that focus on apparent breach of compliance with the
slower economic growth. securities related to precious metals, such measures adopted in the federal law for the
Policy Statements as gold and silver. protection of their personal information.
Clarify the position of the securities The Commissioner is empowered to
Preferred Dividend Funds
commissions on various issues. They may receive complaints; conduct investigations;
A type of fi xed income fund that holds
be issued as national policies and attempt to resolve complaints; and audit
primarily dividend paying preferred shares
instruments, provincial policies, or the personal information management
and possibly common shares. Preferred
uniform policies ie; NI 81-101. practices of an organization.
dividend funds are distinguished from
Registered Pension Plan (PRPP) dividend funds by the fact that they tend Private Placement
A trust registered with Canada Revenue to hold mostly preferred shares. The underwriting of a security and its sale
Agency and established by an employer to to a few buyers, usually institutional, in
provide pension benefits for employees large amounts.
when they retire. Both employer and
employee may contribute to the plan and
contributions are tax-deductible.

GLOSSARY G17
Probate Quartile (Quartile Rankings) Real Rate of Return

A provincial fee charged for authenticating A ranking system that shows how well an This refers to the return on an investment
a will. The fee charged is usually based on individual security or mutual fund has over a given period after adjusting for
the value of the assets in an estate rather performed compared to its peers. A first inflation for the same period.
than the effort to process the will. quartile ranking implies that the funds
performance is in the top 25%, or Record keeping
Professional Management equivalently, that it outperformed 75% of The act of keeping and maintaining
The fundamental service offered by its peers. A second quartile ranking accurate financial records.
mutual funds. It is the role of highly implies that the funds return is between
qualified portfolio managers to select Redemption
25% and 50% of the top performing A feature that allows the issuing
investments that are likely to generate funds. Funds within these two quartiles
returns that reach certain performance corporation to redeem, or pay back, the
are deemed to be outperforming their bondholders before the stated maturity
targets. peers. The bottom quartile, then, would date.
Professional Responsibility include funds that are under-performing
The responsibility of the investment guide relative to their peers. It has been found to Redemption Fee
to provide the best client service possible be highly unlikely that a fund will See Back-End Load.
and to refuse to sell a product that is felt to consistently remain in the top quartile
Referral Arrangement
be unsuitable. over extended time periods.
An arrangement where a member is paid
Profit Qubec Pension Plan (QPP) (or pays) a fee, including fees based on
That part of a companys revenue A mandatory contributory pension plan commissions (or sharing a commission),
remaining after all expenses and taxes designed to provide monthly retirement, for the referral of a client to or from
have been paid and out of which dividends disability and survivor benefits for all another person.
may be paid. Quebec residents. Employers and
Registered Education Saving Plan
employees make equal contributions.
Prohibited Practices (RESP)
Practices that are illegal or otherwise Quick Ratio A type of tax deferred savings plan that
unacceptable to securities regulators. A more stringent measure of liquidity allows usually parents or grandparents to
compared with the current ratio. save for a childs education. Unlike RRSP
Prospectus Calculated as current assets less inventory contributions, annual RESP contributions
A legal document which must accompany divided by current liabilities. By excluding are not tax deductible.
all new security issues. It primarily inventory, the ratio focuses on the
outlines the financial condition of the Registered Pension Plan (RPP)
companys more liquid assets.
issuer, the use to which the funds raised A trust registered with Canada Revenue
will be put, and the risk associated with Ratio Analysis Agency and established by an employer to
the securities. A method of using various ratios to provide pension benefits for employees
evaluate financial statements. when they retire. Both employer and
Protected Funds employee may contribute to the plan and
Mutual funds that offer similar benefits as Ratio Withdrawal Plan contributions are tax-deductible.
segregated funds, like the guarantee of the A systematic withdrawal plan that allows
initial investment after (usually) 10 years mutual fund investors to regularly receive Registered Retirement Income
and reset options. These funds, however, a fi xed percentage of the fund value. If the Fund (RRIF)
do not usually provide death benefits upon ratio exceeds the total of income and An RRSP termination option that allows
the death of the unitholder. capital appreciation, capital erosion will the investor to retain the same investments
result. as were held in the RRSP. A RRIF requires
Purchase Price Per Unit minimum annual withdrawals which must
The total cost per unit an investor pays Real GDP begin by the end of the second calendar
including any acquisition fees. It is The dollar value of all goods and services year following the plans initiation. Like
calculated by dividing the NAVPU by 1 produced in a given year valued at prices RRSPs, RRIFs are transferable between
minus the acquisition fee percentage. that prevailed in some base year. financial institutions and an investor may
Real Estate Market have more than one.
Purchasing Power
It is the ability of a dollar to buy goods This is the market for commercial or
and services. As purchasing power residential properties.
decreases, an individual is able to purchase Real Interest Rate
fewer goods and services for the same The nominal rate of interest minus the
amount of money. percentage change in the Consumer Price
Index (i.e., the rate of inflation).

Registered Retirement Savings Representativeness Risk

Plan (RRSP) An internal system for classifying objects See Volatility.
Allows contributors to save some of their and thoughts.
annual earned income, up to allowable Risk Analysis Ratios
limits, while deferring income taxes on the Reset Option Ratios that show how well the company
contributions. Any earnings held within Allows the contract holder to protect can deal with its debt obligations.
the plan are sheltered from taxes but, upon profits inside the segregated fund.
Risk Averse
withdrawal, are taxed as regular income Retail Investors Descriptive term used for an investor
regardless of their source (e.g., dividends, Individual investors who buy and sell unable or unwilling to accept the
capital gains or interest). securities for their own personal accounts, probability or chance of losing capital.
Registrar and not for another company or
organization. They generally buy in Risk Profile
Usually a trust company appointed by A description of the type of risk associated
a company to monitor the issuing of smaller quantities than larger institutional
investors. with a particular investment.
common or preferred shares. When a
transaction occurs, the registrar receives Retained Earnings Risk Tolerance
both the old cancelled certificate and the Net income that is not paid out in the The financial and psychological readiness
new certificate from the transfer agent and form of dividends but kept by the firm of an individual to bear the day to day
records and signs the new certificate. The usually to finance growth. fluctuations in the value of their
registrar is, in effect, an auditor checking investments. People who are unable to
on the accuracy of the work of the transfer Return tolerate risk are said to be risk-averse.
agent, although in most cases the registrar The return or yield on a security includes Those who like to take risks are risk
and transfer agent are the same trust any change in the value of the security tolerant.
company. over the holding period plus any cash
flows (e.g. interest, dividends) received, all Risk-Adjusted Rate of Return
Registration divided by the original price. The rate of return that is adjusted for risk
Everyone who sells securities, or counsels to be able to compare the performance of
and advises investors, must be registered Return On Common Equity (ROE) two securities on the same basis.
with the appropriate provincial or Ratio
An operating performance ratio that Sacrifice Ratio
territorial securities administrator. This is
indicates managements effectiveness in Describes the extent to which Gross
to monitor the competence and ethical
maintaining or increasing profitability in Domestic Product must be reduced with
behavior of people involved in the selling
relation to the companys common equity increased unemployment to achieve a 1%
of securities.
capital. decrease in the inflation rate.
Regret Aversion
Returns-Based Style Analysis Safety of Capital
People who are subject to regret aversion
Comparing the funds returns (usually 36 An investment that is not likely to erode
bias avoid making decisions because they
to 60 months of data) to the returns of a the capital of the investor will provide
fear, in hindsight, that whatever they
number of selected passive style indices. safety of capital. A money market mutual
decide to do will result in a bad decision.
fund, for example, will satisfy this
Regular Dividend Reward-To-Risk Ratio investment objective.
A term that indicates the amount a Provides an indication of how successful a
fund is at earning a return given the level Sales Charges
company usually pays on an annual basis.
of risk it assumes to earn that return. It is A type of explicit cost paid to mutual
Regulators calculated by dividing the funds return by fund sales representatives and financial
It is the role of regulators to define the its standard deviation of returns. advisors who recommend a companys
limits of activity for the participants in the funds to their clients.
financial system and to ensure that Right of redemption
A mutual funds shareholders have a Sales Commission
financial market transactions are fair and
continuing right to withdraw their See Load.
in compliance with regulations.
investment in the fund simply by Savings
Regulatory Bodies submitting their shares to the fund itself The amount of money not needed for
Provincial and territorial securities and receiving in return the dollar amount current expenditures.
administrators that are responsible for of their net asset value. This characteristic
the administration of the provincial is the hallmark of mutual funds. Payment Secondary Market
securities acts. for the securities that have been redeemed This is the market for securities that have
must be made by the fund within three previously been sold by the issuer. When
Relative Value Strategies
business days from the determination of an investor purchases a security through a
Hedge fund strategies that attempt to
the net asset value. broker, this is said to be a secondary
profit by exploiting inefficiencies or
market transaction.
differences in the pricing of related stocks,
bonds or derivatives in different markets.

GLOSSARY G19
Second-Order Risks Segregated Fund Short-Term Bond Fund

Risks that are not related to the market, Essentially, the life insurance industrys A type of fi xed-income fund that combines
but to other aspects of trading, such as equivalent of a mutual fund. These pooled the characteristics of a bond fund and a
dealing, implementing arbitrage investments are sometimes called variable money market fund. This fund invests
structures, or pricing illiquid or deferred annuities and, like mutual funds, primarily in government bonds with
infrequently valued securities. Second- investors purchase an interest in these maturities of up to five years (though
order risks include liquidity, leverage, funds based on their net asset value. mostly less than three years) and money
deal-break, default, counterparty, trading, Unlike mutual funds, the value of these market securities.
concentration, pricing model, security- investments is often guaranteed.
specific and trading model risks. Simple Rate Of Return
Self-Regulatory Organizations It is the return earned by an investment
Sector Rotation (SROs) over a given period without considering
A type of equity investing philosophy that Associations that regulate the companies the effects of compounding. Simple rates
is based on the belief that different and the employees within a specific are useful for looking at the consistency
industries will perform well during certain industry. For example, the Mutual Fund of returns.
stages of the economic cycle. Dealers Association (MFDA) is the
mutual fund industrys SRO for the Simplified Prospectus
Sector Trading distribution side of the mutual fund For mutual funds, provides all of the
A fi xed-income philosophy for bonds that industry. information required under National
involves varying the weights of different Instrument 81-101 (risk factors of the
types of bonds held within a portfolio. Serial Bond fund, method of distribution, fees,
A bond or debenture issue in which a investment objectives etc.).
Sector Weighting predetermined amount of principal
The selection of the specific industries matures each year. Small Cap Funds
from which stocks in a portfolio will be Small capitalization funds, which means
chosen. Service Fee that the market value of the equity of the
See Trailer Fee. firm is relatively low, probably because the
Secured Bond firm is small.
Bonds that include a promise to turn over Set-Up Fee
an asset to the bondholders for liquidation A one-time fee that is charged by some Soft landing
if the corporation fails to make its coupon mutual funds the first time an investor A business cycle phase when economic
payments or pay the par value at maturity. purchases units. growth slows sharply but does not turn
negative, while inflation falls or
Securities Seven-Day Yield remains low.
Paper certificates or electronic records that Calculated by dividing the ending net
evidence ownership of equity (stocks) or asset value by the funds initial net asset Sophisticated Investor
debt obligations (bonds). value and then subtracting 1. See Accredited Investor.
Securities Administrator Shareholder Source of Capital

A general term referring to the provincial A person who purchases a stock is a The only source of capital is savings.
regulatory authority (e.g., Securities shareholder of the company that issued Capital comes from retail, institutional,
Commission or Provincial Registrar) the stock. and foreign investors.
responsible for administering a provincial
Securities Act. Shareholders Equity Specialty Mutual Funds
Also known as net worth, this is what is A category of funds that specialize in a
Securities Commission left when liabilities are subtracted from particular industry (sector fund) or a
See Securities Administrator. assets. distinctive type of security. These funds
offer a lower level of diversification than
Security Sharpe Ratio other mutual funds and may therefore be
Paper certificates or electronic records that Similar to the reward-to-risk ratio, but it somewhat riskier.
evidence ownership of equity (stocks) or subtracts the T-bill rate from the return
debt obligations (bonds). before calculating the ratio. Speculator
An investor who seeks out higher risk
Security Analysis Shelf Registration funds and investments that offer the
Refers to the evaluation of risk and return Registration of only a simplified possibility of high returns.
characteristics of securities. prospectus for new issues.
Spousal RRSP
Security Selection Short Selling This type of plan allows a couple to divide
A fi xed-income philosophy for bonds that This occurs when an investor sells a the ultimate retirement income between
involves fundamental and credit analysis security that he does not own. This them. See Registered Retirement Savings
and quantitative valuation techniques at transaction is undertaken in order to Plan (RRSP).
the individual security level. benefit from a fall in the price of the
security.

Stability Stock might result from a temporary imbalance

The opposite of volatility. Stability refers Also called a share or equity. A stock between the times that a company receives
to the amount of change in an investment represents an ownership interest in cash from its clients and the time that it
over time. A stable investment is a safe corporations. Typically, stocks do not have must pay suppliers for goods it has
investment. a stated maturity date and therefore fit purchased.
within the definition of a longer-term
Standard Deviation security. Survivorship Bias
A common measure of volatility in A form of bias that affects comparison
investment returns. It shows how spread Stock Exchange universes. As defunct portfolios drop out,
out the returns are with respect to the A marketplace where buyers and sellers of they are excluded from rankings in
average (mean) return. The higher the securities meet to trade and where prices subsequent quarters; therefore, a
standard deviation, the more risky are established according to supply and performance universe is a universe of
the investment. demand. survivors.
Standard Equity Funds Strategic Asset Allocation System for Electronic Document
A mutual fund composed of Canadian An investors mix of specific mutual funds Analysis and Retrieval (SEDAR)
common stocks that seeks to earn some or asset classes consistent with the A web site containing all Canadian mutual
combination of dividend income and investors characteristics. The mix is fund documents including the simplified
capital gains. determined mathematically based on prospectus, annual reports, and annual
capital market expectations. information forms.
Standard Trading Unit
A fi xed number of shares that constitute a Structural unemployment Systematic Risk
trading unit. The common size is A form of unemployment resulting from a The risk associated with mutual fund
100 shares but it may be as large as mismatch between demand in the labour shares or units that can suffer in falling
1000 shares depending on the stock market and the skills and locations of the markets where unit values are subject
exchange and the stock price. workers seeking employment. to market swings.
Standards of Conduct Style Analysis Systematic Withdrawal Plan

The code of conduct that mutual fund The study of style drift (change in a Allows a mutual fund investor to
sales representatives should apply in their managers investment style over a period automatically redeem units on a
relationships with clients. of time) in a funds holdings or returns regular basis. This type of plan is of
over time. benefit to investors who require cash
Statement of Changes in Equity
payouts on which to live or to
A financial statement that shows the total Style drift
supplement their income.
comprehensive income kept in the Changes in a managers investment style
business year after year. over a period of time. T3 Form
Referred to as a Statement of Trust Income
Statement of Comprehensive Suitability
Allocations and Designations. When a
Income A registrants major concern in making
mutual fund is held outside a registered
A financial statement which shows a investment recommendations. All
plan, unitholders of an unincorporated
companys revenues and expenditures information about a client and a security
fund is sent a T3 form by the respective
resulting in either a profit or a loss during must be analyzed to determine if an
fund.
a financial period. investment is suitable for the client in
accounts where a suitability exemption T5 Form
Statement of Financial Position does not apply. Referred to as a Statement of Investment
A financial statement showing a companys
Income. When a mutual fund is held
assets, liabilities and equity on a given Supply
outside a registered plan, shareholders are
date. The quantity of a good or service that
sent a T3 form by the respective fund.
producers are willing to supply at a
Statement of Investment particular price during a given time Target-date Funds
Objectives period. A mutual fund that adjusts its asset mix to
Mutual funds must set investment
move from more risky to more
objectives and clearly state the types of Surplus Funds
conservative as the maturity date of the
investments that the fund will make in In the case of an individual, surplus funds
fund approaches.
order to attain them. apply to money that is not immediately
needed to support a lifestyle buying Tax-Free Savings Account (TFSA)
Status Quo groceries, paying the mortgage and so on. A Government sponsored saving plan
The predisposition of people, when faced In the case of companies, surplus funds where investment income earned in the
with a wide variety of options, to choose
TFSA is tax free.
to keep things the same.

GLOSSARY G21
Technical Analysis Trailer Fee Trustworthiness

Security analysis that is based on the Is paid by mutual funds to compensate The trait of deserving trust and
premise that the only things that affects distributors for providing ongoing services confidence.
stock prices are supply and demand. This to the mutual funds clients. These fees are
type of analysis may also involve looking not borne by the funds investors but by Turnover Rate
for buy or sell signals by examining price the investment company that manages The proportion of a total funds assets
movements or volume movements in the fund. traded in a year.
stock charts. Underwriting
Trailing Commission
Term See Trailer Fee. Occurs when a new issue is purchased by
The period during which a particular rate an investment dealer and the dealer bears
of interest on a mortgage stays in effect. Transfer Agent the risk that the issue will be sold at the
Is responsible for maintaining records desired price. In a best efforts
Term to Maturity of who owns the mutual funds units. underwriting, the dealer does not assume
The time between the issuance of a fi xed This function is usually performed by a the risk of guaranteeing that all or any
income security and its maturity date, at trust company. part of an issue will be sold.
which the issuer will pay back the
principal. Transfer Fee Unemployment Rate
Is charged when a mutual fund investor A measure of the prevalence of
Termination wishes to switch investments out of one unemployment. It is calculated as a
Leaving the employer and transferring fund and into another fund with the same percentage by dividing the number of
internally within the company to another mutual fund company. unemployed individuals by all individuals
province. currently in the labor force.
Treasury Bill (T-Bill)
Terrorist Financing A T-Bill is a short term debt security Unique Risk
Terrorist financing (proceeds for crime) issued by the government. T-Bills do not The risk that a particular firm or industry
provides funds for terrorist activity. pay interest, instead they are sold at a will do poorly, regardless of the
discount and are redeemed for their par performance of the market as a whole.
Time-Weighted Maturity value at maturity. This type of risk can be eliminated
See Duration. through diversification.
Trend Ratios
Time Weighted Return (TWR) Constructed by selecting a base period Unsolicited Orders
Also known as the geometric mean return, (usually treating the ratio for that period Orders for mutual funds that have not
it involves adding 1 to each of the as 100) and then dividing the base period been recommended by the salesperson but
observed annual returns, finding the nth into subsequent periods. Trend ratios are instead come from the clients.
root of their product (where n is the useful for spotting trends and making
number of annual returns), and finally comparisons between companies. Users of Capital
subtracting 1. Individuals, companies, and governments
Trust deed that levy money by borrowing or issuing
Total Assets This is the formal document that outlines shares (companies only) for a number of
Includes the estimated market value of real the agreement between the bond issuer reasons.
estate, the value of all investments, and the and the bondholders. It outlines such
value of all other assets held by the client. things as the coupon rate, if interest is Value Investing
paid semi-annually and when, and any An equity investment philosophy that
Total Liabilities promotes a conservative approach to
Calculated by adding up the outstanding other terms and conditions between both
parties. money management. Value investors want
amount on mortgages and loans, as well as to buy a firm for less than what the assets
unpaid bills. Trustee in place are worth.
Tracking Error For bondholders, usually a trust company
appointed by the company to protect the Value Ratios
The degree to which ETFs fails to mirror Ratios that show the investor what the
the index returns. security behind the bonds and to make
certain that all covenants of the trust deed companys shares are worth, or the return
Trading costs relating to the bonds are honoured. For a on owning them.
The amount of brokerage fees and segregated fund, the trustee administers Variability
commissions paid to buy and sell securities the assets of a mutual fund on behalf of The amount of change in returns of an
within a mutual fund. the investors. investment over a period of time.
Trustee Fee Variable Annuity
Is charged to investors who hold mutual An annuity where payments to the
fund investments as stand-alone RRSP, annuitant will fluctuate in keeping with
RRIF, and RESP investments. the changes in the value of the mutual
fund from which payments are made.

Variance Wealth Yield Curve

Measures the extent to which the possible This is measured by the value of an A graph showing the relationship between
returns on a security differ from the investors savings, investments, and assets. yields of bonds of the same quality but
expected return. When their value grows at a rate that different maturities. A normal yield curve
exceeds the inflation rate, wealth increases. is upward sloping depicting the fact that
Vested short-term money usually has a lower yield
The accumulated contributions in an Whipsaws than longer-term funds. When short-term
employer-sponsored pension plan belong Rapid intraday or interday price swings in funds are more expensive than longer term
to the employee. the market that may result in many funds the yield curve is said to be inverted.
short-term trading losses.
Volatility Yield to Maturity
Volatility measures the periodic change in Working Capital Shows the return expected over the life of
returns in relation to the average or mean A companys total current assets minus its a bond assuming the periodic coupon
return the greater the change, the more current liabilities. payments are reinvested at the yield to
volatile the investment. A volatile maturity. It takes into account the current
investment is a risky investment. Working Capital Ratio
See Current Ratio. market price of a bond, the time
Voluntary Accumulation Plan remaining to maturity, the par value, and
Allows the mutual fund investor to specify Yield the coupon rate.
the amount and timing of the regular See Current Yield and Effective Yield.
investments they are willing to make.

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Glossary

CANADIAN SECURITIES INSTITUTE (2014) G1

Account Closing Fees Amortization Assets

CANADIAN SECURITIES INSTITUTE (2014)

Balance of payments Benchmark Branch Compliance Officer (BCO)

CANADIAN SECURITIES INSTITUTE (2014)

CANADIAN SECURITIES INSTITUTE (2014)

Comparison Universe Contribution Room Credit Rating

Concentration Risk conditions warrant it. Current Account

CANADIAN SECURITIES INSTITUTE (2014)

Custodian Deemed Disposition Depreciation

CANADIAN SECURITIES INSTITUTE (2014)

Diversification Duty of Care Electronic Document

CANADIAN SECURITIES INSTITUTE (2014)

Ethical Conduct Explicit Costs Financial Markets

Expansion Financial Intermediaries Fixed Trust

CANADIAN SECURITIES INSTITUTE (2014)

Fixed-Dollar (Constant) Front-End Load Global Equity Funds

CANADIAN SECURITIES INSTITUTE (2014)

Guaranteed Investment Certificate Hurdle Rate Interest Coverage Ratio

CANADIAN SECURITIES INSTITUTE (2014)

Investment Company iShares CDN S&P/TSX 60 Index Life Annuity

CANADIAN SECURITIES INSTITUTE (2014)

Locked-In Retirement Account Management Expense Ratio (MER) Market Risk

CANADIAN SECURITIES INSTITUTE (2014)

Monetary Policy Mutual Fund Dealer Association Net Worth

CANADIAN SECURITIES INSTITUTE (2014)

Non-Deposit-Taking Institution Option contract Participating Preferred

CANADIAN SECURITIES INSTITUTE (2014)

Performance Participation Cap Portfolio Allocation Service Preferred Shares

CANADIAN SECURITIES INSTITUTE (2014)

Probate Quartile (Quartile Rankings) Real Rate of Return

CANADIAN SECURITIES INSTITUTE (2014)

Registered Retirement Savings Representativeness Risk

CANADIAN SECURITIES INSTITUTE (2014)

Second-Order Risks Segregated Fund Short-Term Bond Fund

Securities Administrator Shareholder Source of Capital

CANADIAN SECURITIES INSTITUTE (2014)

Stability Stock might result from a temporary imbalance

Standards of Conduct Style Analysis Systematic Withdrawal Plan

CANADIAN SECURITIES INSTITUTE (2014)

Technical Analysis Trailer Fee Trustworthiness

CANADIAN SECURITIES INSTITUTE (2014)

Variance Wealth Yield Curve

CANADIAN SECURITIES INSTITUTE (2014)

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