A securities firm is classified as an agent when it acts as buyer or seller of a security on behalf of its clients. The agent does not own the security at any time during the transaction.
All or none
An order type that the broker executes only if the trade can be executed for the full quantity specified. If a complete transaction is not executed, it will remain open for the time limit specified.
American Depositary Receipt (ADR)
Receipt for shares of foreign-based companies that entitle the shareholder to all dividends and capital gains. ADRs allow investors to buy shares of foreign-based corporations' securities on U.S. Exchanges instead of having to go to overseas exchanges.
Options that can be exercised any time during their lifetime. These are also known as open options.
A publication, including financial statements and a report on operations, issued by a company to its shareholders at the company's fiscal year-end.
An investment in which the policy holder makes a lump-sum or installment payment to an insurance company and receives income at retirement.
The simultaneous purchase of a security on one stock market and the sale of the same security on another stock market at prices which yield a profit.
The price at which someone is willing to sell a security. It generally is the lowest round lot price at which someone will sell.
Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owned to the company or person. Assets are listed on a company's balance sheet or an individual's net worth statement.
The notification to the seller of an option by the clearing corporation that the buyer of the option is enforcing the terms of the option's contract.
Alternative trading system (ATS)
A non-exchange, electronic system that matches buy and sell orders. Canadian ATSs include Alpha, Chi-X, Omega, and Pure.
When the price of the underlying equity, index or commodity equals the strike price of the option.
Averages and indices
Statistical tools that measure the state of the stock market or the economy based on the performance of stocks, bonds or other components. Examples are the Composite Index, the Dow Jones Industrial Average and the Consumer Price Index.
Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.