A B C
D E F
G H I
J K L
M N O
P Q R
S T U V
W X Y Z
60J
Refers to Section 60(J) of the Income Tax Act which allows the tax-free
transfer of pension benefits, deferred profit sharing plans, retiring allowances
and superannuation benefits to a registered retirement savings plan.
Accrued interest (Intérêt couru, intérêts
cumulés)
Interest that is due on a bond or other fixed income security since
the last interest payment was made.
Adjusted Cost Base (Prix de base rajusté)
It is the calculation used to determine the cost of an investment.
Revenue Canada requires investors to use the adjusted cost base (ACB) when
calculating capital gains or losses for tax purposes. The "cost base" of
an investment is the initial purchase price plus any related costs, such
as commissions or fees. The cost base may never change if there are no
additions or disposals ("redemptions" in the case of funds). However, when
changes are made, the cost base must be "adjusted" to reflect the new cost
base of the investment for tax purposes.
Annuitant (Rentier)
The beneficiary of an annuity.
Annuity (Rente)
A contract that provides for periodic payments (fixed or variable)
for life or over a certain period of time.
Arm's length transaction (Transaction sans lien de dépendance)
A transaction between two parties who are not related or affiliated
in any manner, to avoid any question or conflict of interest.
Asset (Avoir, actif, bien)
Any item of economic value owned by an individual or corporation.
Asset Allocation Portfolio (Portefeuille de répartition
de l'actif)
A single mutual fund which tries to accomplish the goals of dividing
investments among different kinds of assets to optimize the risk /reward
tradeoff based on an individual's specific situation and goals.
Assign (Ayant droit)
An individual who has acquired rights from another person.
Average Cost (Coût moyen)
The total cost of all the fund shares divided by the total number of
shares owned. See also Adjusted Cost Base.
Back-end load (Frais de rachat, frais de sortie en France)
A sales charge or commission paid when an individual redeems an investment.
It is also called Deferred Sales Charge (DSC).
Balance sheet (Bilan)
A quantitative summary of a company's financial condition at a specific
point in time, including assets, liabilities and net worth.
Balanced fund (Fonds équilibré)
A mutual fund that buys a combination of common stocks, preferred stocks,
bonds, and short-term bonds, to provide both income and capital appreciation
while avoiding excessive risk.
Beneficial owner (Propriétaire bénéficiaire)
The real owner of a security. An investor may choose to have securities
registered in the name of a trustee, nominee or broker to facilitate transfer
or anonymity. However, the investor who receives interest, dividends or
profits from the securities, is the beneficial owner.
Beneficiary (Bénéficiaire)
An individual, institution, trustee or estate which receives, or may
become eligible to receive, benefits under a will, retirement plan or other
contract.
Board lot (Lot régulier)
The normal unit of trading of a security : 100 shares of stock or 5
bonds. Also called round lot.
Bond (Obligation)
A certificate issued by a government or a public company, promising
to repay borrowed money at a fixed rate of interest for a specified length
of time, and to repay the loan on its maturity.
Book value (Valeur comptable, valeur livre)
The original value of an asset as it appears on the company's balance
sheet.
Business day (Jour ouvrable)
The part of a day during which a company operates, usually from 9am
to 5pm Monday through Friday.
Canada Customs and Revenue Agency - CCRA (Agence des douanes
et du revenu du Canada)
Its long-standing mission is to promote compliance with Canada's tax,
trade, and border legislation, and regulations through education, and responsible
enforcement, thereby contributing to the economic and social well-being
of Canadians.
http://www.ccra-adrc.gc.ca
Canadian Life and Health Insurance Association - CLHIA (Association
canadienne des compagnies d'assurance de personnes - ACCAP)
The national self-regulatory organization of the insurance industry.
http://www.clhia.ca
Capital gain or loss (Gain ou perte en capital)
The difference between the selling price and the initial purchase price
of an asset.
Capital stock (Capital-actions, capital social d'une entreprise)
The number of shares authorized for issuance by a company's charter,
including both common shares and preferred shares.
Cash on delivery - COD (Livraison contre remboursement)
A transaction in which goods are paid for in full in cash or by certified
cheque immediately when they are received by the buyer.
Certificate of assignment (Attestation de cession)
The document by which the bankrupt agrees to assign his/her assets.
Certificate of appointment of trustee in bankruptcy(Certificat
de nomination du syndic de faillite)
A document appointing a specific trustee to administer and dispose
of the estate of a bankrupt person for the benefit of the creditors.
Chattel mortgage (Hypothèque mobilière)
A lien on assets other than real estate backing a loan.
Clearing (compensation)
The verification of information between two brokers in a securities
transaction and the subsequent settlement (delivery of certificates in
exchange for payment). The Clearinghouse is the agency which matches the
information, settles the trade and regulates delivery.
Clone fund (Fonds cloné)
A fund which tries to copy the strategy of a successful, existing fund.
Closed-end fund (Fonds à capital fixe)
A fund with a fixed number of shares outstanding, and one which does
not redeem shares the way a typical mutual fund does.
Collateral (Nantissement, garantie, sûreté)
Assets pledged by a borrower to secure a loan or other credit, and
subject to seizure in the event of default It is also called security.
Common stock (Actions ordinaires)
Securities representing equity ownership in a corporation, providing
voting rights and entitling the holder to a share of the company's success
through dividends and/or capital appreciation.
Compliance officer (Responsable de la conformité des règlements)
The officer that oversees trading and other activities to ensure that
regulations are being adhered to.
Compound interest (Intérêts composés)
Interest which is calculated not only on the initial principal but
also the accumulated interest of prior periods.
Consideration (Contrepartie)
Something of value, such as money, given by one party to another in
exchange for an act or promise.
Conversion (Conversion)
The process of exchanging units of a mutual fund for units of another
mutual fund. See also Switch.
Corporate Resolution (Résolution de société)
A document which authorizes designated officers of the corporation
to submit transactions in the registered account on behalf of the corporation.
Credit union (Coopérative de crédit, Caisse populaire)
Credit unions are non-profit, member-owned, financial cooperatives
entirely operated by and for their members.
Crystallization (Achat-vendu)
Simultaneous redemption-purchase of a security (very often for tax
purposes).
CUSIP - Committee on Uniform Security Identification Procedure
(Comité sur l'uniformité de la procédure d'identification
d'une valeur mobilière).
CUSIP is a standard system of securities identification and securities
description that is used in electronically processing and recording securities
transactions in North America.
Custodian (Dépositaire)
Typically a trust company, the custodian holds and safeguards all assets
on behalf of individuals.
Debenture (Débenture)
An unsecured debt backed only by the integrity of the borrower, not
by collateral.
Deferred Profit Sharing Plan (Régime de participation
différée aux bénéfices)
An employer-sponsored benefit program under which certain amounts may
be set aside, per participating employee, out of the profits and invested
in a tax-deferred, registered account.
Deferred Salary Leave Plan (Régime d'échelonnement
du traitement aux fins de congé)
Plan which allows employees to defer a portion of their salary for
a period of twelve to seventy-two months. The deferred salary must then
be used in financing a leave of absence for any reason for duration's of
six to 12 months, subject to the approval of the employer and the terms
and conditions of the Plan.
Demutualization (Démutualisation)
Demutualization is the process by which a mutual life insurance company
is converted into a company with common shares. A mutual company is owned
by its participating policyholders, but the ownership rights are not tradable
or exchangeable. Under the process of demutualization, common shares are
issued to eligible participating policyholders who then have the opportunity
to retain or sell the shares.
Dollar cost averaging (Achat périodique par sommes fixes)
An investment strategy designed to reduce volatility in which mutual
funds are purchased in fixed dollar amounts at regular intervals, regardless
of what direction the market is moving.
Dividend Reinvestment Plan (Plan de réinvestissement des
dividendes)
An investment plan enabling share holders to automatically reinvest
cash dividends and capital gain distributions, thereby accumulating more
stock without paying brokerage commissions.
DSC fees (Frais de rachat) See Back-end load.
Employee Benefit Plan (Régime de prestations aux employés)
An arrangement under which the employer or someone not dealing at arm's
length with the employer makes contributions to another person (called
a custodian) and under which one or more payments will be made to or for
the benefit of employees, former employees or persons with whom the employees
and former employees do not deal at arm's length.
Employer matching contribution (Abondement)
The amount that a company contributes to its employees' retirement
accounts, typically in proportion to each employee's contribution.
Equity or Shareholder's equity (Avoir des actionnaires, capitaux
propres de l'entreprise)
Shareholders' ownership interest in a corporation in the form of common
or preferred stocks.
Estate (Succession)
All assets owned by an individual at death, to be distributed according
to the individual's will.
First 60 days Contribution receipt (Reçu de cotisation
pour les 60 premiers jours)
Receipt issued for the contributions made into an RSP during the first
60 days of the year. This receipt can either be applied to the previous
year or the current year tax return.
Fixed income investment (Placement à revenu fixe)
A fixed income investment is essentially an IOU in which the issuer
promises to repay the investor both principal and interest at maturity.
Bonds, debentures and preferred shares are fixed income securities that
generate a predictable stream of interest or dividend.
Flow-through shares (Actions accréditives)
A Flow-through Share (FTS) is simply a common share of an oil and gas
company. The name "flow-through" is attached because the company agrees
to do exactly that - flow-through to the purchasers of these shares certain
tax deductions that are generated from the company's capital expenditure
programs.
Foreclosure (Saisie immobilière)
A legal procedure in which real estate is sold by the lender to pay
a defaulting borrower's debt.
Foreign content (Contenu étranger)
The amount of foreign property in a plan. As of today (year 2001),
the foreign content limit is 30 % of the book value of the plan.
Free units -10% DSC free redemption (Unités gratuites
- rachat des 10% sans frais)
A service offered by mutual fund companies that allows an investor
of back-end load funds to redeem a small portion of their holdings without
paying a redemption fee. It is calculated as 10 % of the market value of
the amount purchased, and in subsequent years, 10 % of the previous year-end
market value. Although widely used, the term "free units" is improper
since only the redemption fee is waived on those specific units.
Front-end load (Frais d'acquisition, frais d'entrée en
France)
Sales charge or acquisition fee applied to an investment at the time
of purchase.
Garnishment (Saisie-arrêt)
Situation in which an employer is instructed by a court to withhold
some or all of an employee's wages to pay off the settlement of a lawsuit
which that employee lost.
Global fund (Fonds mondial)
A mutual fund which invests throughout the world, including Canada.
See also International fund.
Grandfather clause (Clause des droits acquis)
A provision exempting persons or other entities already engaged in
an activity from rules or legislation affecting that activity.
Group RSP (RÉR collectif)
A group RSP is essentially a collection of individual RRSPs for the
employees or members of the applicable organization. Individuals belonging
to the organization or their spouses are eligible to participate. The organization
can act as agent for the annuitant for certain purposes, such as receiving
contributions to the RSP.
Growth fund (Fonds de croissance)
A mutual fund whose aim is to achieve capital appreciation by investing
in stocks likely to have superior growth potential.
Guaranteed Investment Certificate - GIC (Certificat de placement
garanti - CPG)
A deposit instrument requiring a minimum investment at a predetermined
rate of interest for a fixed term.
Home Buyers'Plan - HBP (Régime d'accession à la
propriété)
The HBP is a program that allows you to withdraw up to $20,000 from
your registered retirement savings plans (RRSPs) to buy or build a qualifying
home for yourself.
Hypothecation (Nantissement)
The pledging of securities or other assets as collateral to secure
a loan.
IDA - Investment Dealers Association (Association des courtiers
en valeurs mobilières)
The Investment Dealers Association of Canada is the national self-regulatory
organization and trade association of the Canadian securities industry.
The Association regulates the activities of investment dealers in terms
of both their capital adequacy and conduct of business. http://ida.ca
IFIC - Investment Funds Institute of Canada (Institut des fonds
d'investissement du Canada)
The national trade association for the Canadian mutual fund industry.
A key part of IFIC's mandate is to educate investors and potential investors
about mutual funds and mutual fund investing. http://www.ific.ca
Income fund (Fonds de revenu)
A mutual fund which emphasizes current income in the form of dividends
or coupon payments from bonds and/or preferred shares, rather than growth.
Index fund (Fonds indiciel)
A mutual fund that tries to mirror the performance of a specific index,
such as the TSE300.
Individual Pension Plan - IPP (Régime de retraite
individuel)
This is a special plan created for the key employees of a corporation,
or the shareholders who hold more than 10 % of the capital stock of the
corporation. To set up an individual pension plan, MRS requires a trust
agreement signed and accepted by both the employer and MRS, a copy of the
plan text, an actuarial valuation report, approval from the applicable
pension board and a letter of direction from the client / employer appointing
an investment manager to the pension plan.
International fund (Fonds international)
A mutual fund which invests in stocks and bonds of companies outside
of Canada. See also Global fund.
Investment fund (Fonds de placement)
A term generally interchangeable with "mutual fund".
Joint tenants with rights of survivorship (Copropriétaires
avec gains de survie)
Ownership of property by two or more people in which the survivors
automatically gain ownership of a decedent's interest.
Joint tenants in common (Tenants joints avec propriété
en commun)
All tenants in common share equal property rights except that, upon
the death of a tenant in common, that share does not go to the surviving
tenants but is transferred to the estate of the deceased tenant. Unity
of possession but distinct titles.
Know Your Customer (Bien connaître son client)
A guideline stated or implied by various securities regulatory bodies
which requires that brokers determine the suitability of investments for
customers before making recommendations.
Labor sponsored fund (Fonds des travailleurs)
Labour-sponsored funds (LSFs) are pools of workers' savings money which
provide subsidized venture capital to small and medium-sized businesses.
Leverage (Effet de levier, d'endettement)
The borrowing of money for investment purposes. (Speculation that the
borrowed capital will bring in profits greater than the interest payable).
Leveraged buy-out - LBO (Rachat d'entreprise financé par
l'endettement)
Takeover of a company or controlling interest in a company, using a
significant amount of borrowed money.
Lien (Privilège, droit de rétention)
The mortgage lender's legal claim to the borrower's property.
Life Income Fund - LIF (Fonds de revenu viager - FRV )
LIFs (life income funds) are special RRIFs (registered retirement income
funds) into which an individual can transfer amounts from his/her supplemental
pension plan or locked-in retirement account (LIRA).
Unlike RRIFs, which have no ceiling on withdrawals, LIFs have a limit
placed on how much the individual can withdraw each year because the purpose
of a LIF is to provide an income for life. The withdrawal range is calculated
so that there is enough money in the account to purchase a Life Annuity
before the end of the calendar year in which the individual turns 80.
Locked-In Retirement Account - LIRA (Compte de retraite
immobilisé - CRI)
Similar to a Registered Retirement Savins Plan (RRSP) in that you have
control over investments, but access to them is restricted until age 55.
A LIRA often holds employer contributions transferred from a company pension
plan upon leaving the company.
The money in a LIRA is locked in, because it must be used to purchase
retirement income. Therefore, you cannot withdraw it unless you submit
a medical certificate stating that your life expectancy has been reduced
by a physical or mental disability.
Load (Droit à payer)
Commissions charged on the purchase or sale of mutual fund units.
Margin (Marge)
The amount paid by a client when he uses credit to purchase a security,
the balance being loaned by the investment dealer against acceptable collateral.
Market price (Valeur au marché)
It is usually considered to be the last reported price at which the
stock, fund or bond is sold.
Market value (Prix du marché)
The price that the market - any market - sets at a particular time
as the price at which an asset can be bought or sold.
Maturity (Échéance)
The date on which a loan, GIC, bond or debenture comes due and must
be redeemed, or paid off.
Money Market Fund (Fonds de marché monétaire)
A mutual fund that invests primarily in treasury bills and other low
risk short-term investments.
Mortgage (Hypothèque)
A contract by which money is lent by a financial institution for buying
a house or other property, the property itself being the security.
Mortgage Fund (Fonds hypothécaire)
A mutual fund that holds mortgages.
Mutual fund (Fonds commun)
A mutual fund is a pool of assets invested on behalf of investors.
Individual investors own a percentage of the value of the fund as represented
by the number of units they purchase.
Mutual Fund Dealers Association - MFDA (Association des courtiers
en fonds communs)
It is the mutual fund industry's self-regulatory organization ("SRO")
for the distribution side of the industry. It is responsible for regulating
all sales of mutual funds by its members in Canada. The MFDA does not regulate
the funds or fund manufacturers. This responsibility remains with the securities
commissions. http://www.mfda.ca
NAV - Net Asset Value (Valeur liquidative, valeur de l'actif
net)
The dollar value of a single mutual fund share, based on the value
of the underlying assets of the fund minus the liabilities, divided by
the number of shares in existence. This is calculated at the end of each
business day.
No-Load fund (Fonds sans frais)
An investment fund that does not charge front or back end commissions.
Nominal capital (Capital social déclaré)
The par value of shares of stock a corporation has issued.
Nominal value (Valeur nominale)
The value of a share when issued.
Nominee (Prête-nom)
The registered shareholder in a third-party account. The nominee has
trading authority over the account but the actual securities are held by
the beneficial owner.
Non-qualifying RRIF (FRR non-admissible)
A RRIF that does not qualify - See Qualifying RRIF
NR4 receipt (Reçu NR4) See T4RIF
OAS - Old Age Security (Sécurité de la vieillesse)
A universal, federal benefit provided to retired Canadians aged 65
and older.
http://www.hrdc-drhc.gc.ca/isp/common/oastoc_e.shtml
Odd lot (Lot irrégulier)
Less than 100 shares of a stock; or less than 10 shares of a very thinly
traded stock.
Off the books (Non-déclaré, sans caractère
officiel, hors-Livre)
Payments for which no formal record is kept.
Open-end fund (Fonds à capital variable)
A mutual fund that continuously issues and redeems units, so the number
of units outstanding varies from day to day.
Ontario Securities Commission (Commission des valeurs mobilières
de l'Ontario)
The Ontario Securities Commission administers and enforces securities
legislation in the Province of Ontario.
http://www.osc.gov.on.ca
Orphan clause (Clause de disparité de traitement)
A clause intending to exclude a group of employees from the application
of a collective agreement or some of its provisions.
Over-the-counter (Hors cote)
A security which is not traded on a recognized exchange, usually due
to an inability to meet listing requirements.
PAC - Pre-authorized chequing (Programme de prélèvement
automatique)
A program allowing investors to make periodic or regular investments
into a mutual fund through the direct debit of the investor's bank account.
PAR - Pension Adjustment Reversal (Facteur d'équivalence
rectifié)
A PAR is an amount that will restore registered retirement savings
plan (RRSP) contribution room to an individual. This applies when the individual
receives a termination benefit that is less than the individual's total
pension adjustments and past service pension adjustments (PSPA).
Par value (Valeur au pair)
The nominal dollar value assigned to a security by the issuer. Also
called face value.
Power of Attorney (Procuration)
A legal document that enables an individual to designate another person
to act on his/her behalf.
Preferred stock (Actions privilégiées)
A class of shares which provides a fixed dividend that is paid before
any dividends are paid to common stock holders, and which takes precedence
over common stock in the event of a liquidation. Usually these shares do
not carry voting rights.
Price to earnings ratio (rapport cours/bénéfices)
A common stock's current market price divided by its annual after-tax
share earnings.
Prospectus (Prospectus)
A legal document that describes in detail the security being offered
for sale to the public.
Proxy (Fondé de pouvoir)
A person who holds a document giving him/her the power to act as a
substitute.
PSPA - Past Service Pension Adjustment (Facteur d'équivalence
pour services passés)
A PSPA arises when a past service event, transaction or circumstance
causes a plan member's lifetime retirement benefits for post 1989 years
of service to be retroactively improved. It represents the sum of the additional
pension credits (value of the benefit that a member earns under a DPSP,
or a money purchase or a defined benefit provision of an RPP in a calendar
year) that would have been included in the member's pension adjustment
if the upgraded benefits had actually been provided, or the additional
service actually credited, in the years covered by the past service event.
Qualifying Registered Retirement Income Fund (Fonds enregistré
de revenu de retraite admissible)
A Registered Retirement Income Fund (RRIF) that was set up in 1992
or earlier, that has no funds or property transferred or contributed to
it in 1993 or later, other than funds or property from another qualifying
RRIF; or, that was set up in 1993 or later, with funds or
property directly transferred from another qualifying RRIF.
Quebec Securities Commission (Commission des valeurs mobilières
du Québec)
The Quebec Securities Commission is the watchdog agency for the Quebec
securities market. It was created by order of the Quebec National Assembly
in 1955. http://www.cvmq.com/english/index.html
QuickTrade (Opérapide)
It is the MRS mutual fund order management system for CSS-eligible
funds only. A trade for mutual funds is settled at T+1 for Money Market
Funds and T+3 for other funds. Only MRS trade tickets are accepted. http://www.mrs.com
Registered Education Savings Plan (Régime enregistré
d'épargne-études)
An RESP is a contract between an individual (other than a trust) who
is the subscriber, and a person or organization, who is the promoter. The
subscriber (or a person on behalf of the subscriber) makes contributions
to the RESP which earn income. In return, the promoter of the plan agrees
to pay the income as educational assistance payments to one or more beneficiaries
designated in the contract.
Registered Pension Plan - RPP (Régime de pension agréé)
A pension plan may generally be described as an arrangement between
an employer and its employees, or between a union and its members, for
providing pension benefits to the employees or the union members on retirement.
Pension plans are regulated by federal and/or provincial legislation.
Registered Retirement Income Fund - RRIF (Fonds enregistré
de revenu de retraite - FERR)
An arrangement between a trust company (or another carrier) and an
annuitant under which the trust company (or carrier) agrees to make payments
to the annuitant and, if elected by the annuitant, to the annuitant's spouse
after the annuitant's death, in consideration for the transfer of property
to the trust company (or carrier). The payments must begin no later than
the first calendar year after the year in which the RIF is entered into.
Registered Retirement Savings Plan - RRSP (Régime enregistré
d'épargne-retraite - REÉR)
A plan registered with Revenue Canada allowing individuals to save
for retirement and defer tax on 18 % of their yearly earned income (to
a maximum of $13,500 for the year 2001) by means of contributions. The
year the annuitant (individual or spouse) of the plan turns 69 is the last
year that contributions can be made to the RRSP. The RRSP is then converted
into a RRIF or a LIF.
Relevé 2 See T4RIF
Retained earnings (Bénéfices non répartis,
bénéfices non distribués)
Earnings not paid out as dividends but instead reinvested in the core
business or used to pay off debt.
Retail lending (Prêts aux particuliers)
Lending to private individuals, as opposed to institutions.
Retiring allowance (Allocation de retraite)
It usually is the amount received on or after retirement from an office
or employment, in recognition of long service.
Securities and Exchange Commission - SEC (Commission des opérations
de bourse US)
The primary US federal regulatory agency for the securities industry,
whose responsibility is to promote full disclosure and to protect investors
against fraudulent and manipulative practices in the securities markets.
Security (Valeur mobilière)
An investment instrument, other than an insurance policy or fixed annuity,
issued by a corporation, government or other organization, which offers
evidence of debt or equity.
Segregated funds (Fonds distincts)
A segregated fund policy is an arrangement created by an insurance
company, under which investors' returns are based on the return earned
by the insurer on a specified group of properties. It is a life insurance
product that, from the perspective of an investor, is similar to a mutual
fund.
Settlement date (Jour de règlement des opérations)
The date on which a buyer must pay for a purchase or a seller must
deliver the sold assets.
Severance package (Indemnité de départ)
A payment made to a terminated employee.
Share (Action)
Certificate representing one unit of ownership in a corporation, mutual
fund or limited partnership.
Signature guarantee (Certification de signature)
An authentication of a signature in the form of a stamp or seal by
a bank, trust company, dealer head office, or another acceptable guarantor.
Silent partner (Bailleur de fonds)
A business partner who provides capital but does not actively participate
in the management of operations.
Sinking fund (Fonds d'amortissement)
A fund into which a company sets aside money over time, in order to
pay off its preferred stock, bonds, or debentures.
Spousal Retirement Savings Plan (Régime d'Épargne
Retraite de conjoint)
A retirement savings plan where the registered planholder is the spouse
of the contributor. The contributor receives the tax deduction.
Spread (Écart)
The difference between the rate at which money is deposited in a financial
institution and the higher rate at which money is lent out. It is also
the difference between the current bid and the current ask (in over-the-counter
trading) or offered (in exchange trading) of a given security. More generally
it is the difference between any two prices.
Strip bond (Obligation à coupons détachés)
Bond whose two components, interest and repayment of principal, are
separated and sold individually as zero-coupon bonds. Strip is the acronym
for Separated Trading of Registered Interest and Principal of securities.
Superintendent of Financial Institutions (Inspecteur Général
des institutions financières)
Is the primary regulator of federal financial institutions and pension
plans. His/her mission is to safeguard policy holders, depositors and pension
plan members from undue loss. To obtain information on businesses in Quebec
- Tel : (418)528-5703 or fax : (418)643-3625
Swap (Échange)
An exchange transaction.
Switch (Transfert interfonds)
The process of exchanging units of a mutual fund for units of another
mutual fund of the same family of funds, usually with the same load type.
See also Conversion.
T4RSP
If your spouse dies and you are the sole beneficiary of your spouse's
RRSP, then you are permitted to transfer the RRSP to your RRIF on or before
December 31 of the year after the year of death. In this instance you will
receive two receipts, a T4RSP to report the income inclusion and a contribution
receipt for the same amount that will offset the income inclusion.
T4RIF
If you made a withdrawal from your RRIF during the year, you will be
issued a T4RIF. It will show the amount withdrawn and the tax that has
been withheld. In addition, if you are a resident of Québec, you
will receive a Relevé 2. If you are a nonresident, you will receive
an NR4 receipt.
Trade date (Date d'opération)
The date on which the transaction occurs; 1 to 5 days before the settlement
date, depending on the type of transaction.
Trading authorization (Autorisation visant les opérations)
Permission given by a customer granting his/her dealer the power of
attorney in making trades.
Transfer agent (Agent de transfert)
An agent employed by a corporation or mutual fund company to maintain
shareholder records, including purchases, sales, and account balances.
Trust company (Fiducie)
Organization which acts as a fiduciary, trustee, or agent for individuals
and businesses in the administration of trust funds, estates, and custodial
arrangements.
Trustee (Fiduciaire)
An individual or organization which holds or manages and invests assets
for the benefit of another.
Trustee in bankruptcy (Syndic de faillite)
Court-appointed trustee who will administer the affairs of a bankrupt
company or individual.
Venture capital corporation (Société de capital-risque)
An investment company that invests its shareholders' money in startups
and other risky but potentially very profitable ventures.
Vesting (Acquisition de droits)
The process in which a right to property passes unconditionally to
a particular person. When an employee becomes entitled to eligible pension
benefits, which include the employer's contribution, his or her pension
is said to be "vested". When pension vesting occurs, pension benefits become
"locked-in".
Wholly-owned subsidiary (Filiale en propriété exclusive)
Subsidiary which is owned entirely by its holding company.
Withholding tax - Federal (Retenue d'impôt à la
source)
A deduction levied at source of income as advance payment on income
tax. For a RRSP, the deduction percentage on withdrawals are as follows
:
Yield (Rendement)
The annual rate of return on an investment, expressed as a percentage.
For bonds and notes, it is the coupon rate divided by the market price.
For securities, it is the annual dividends divided by the purchase price.
Zero-coupon bond (Obligation à coupon zéro)
A bond which pays no coupons, is sold at a deep discount to its face
value, and matures at its face value.