Insurer gains as analysts praise outlook. Merger should benefit both parties unless there is a commodities fall. Both exchanges have spotted an opportunity to create a mining listings giant, writes Jeremy Grant. Battle over European equities is brewing. Officials investigate cyberattack. Manage cookies. London Stock Exchange Group. Add to myFT Digest. Thursday, 10 February, FT Alphaville Gwen Robinson. Wednesday, 9 February, FT People UK companies. UK equities.
Views of a new landscape. The Short View Markets. Short View: Indexes too close to home. David Blackwell David Blackwell. Solution from Torotrak set to raise eyebrows. US financial regulation. Exchange chiefs seek global powerhouses. Promoted Content. Financial services. FT Alphaville Neil Hume. Now it's a case of thinking more about the differences between different commodities over the medium and longer term. Take diamonds the recovering US economy is working in favour of diamonds, and you've also got the roll-out of the diamond engagement ring in China.
Neil: The stock answer would be that, if it is over, it's been the shortest supercycle ever. Part of the problem with that argument is that if you read up on other supercycles there were still periods during the cycle in which you might not have made any money for a decade. Also, when the latest one started we were coming off a year decline in metal prices in real terms ie, after inflation.
So, while compared to ten years ago we're at elevated levels, we're not going to go down. Yes, there's oversupply in some areas, but there's been a reaction to that and the scene is set for the next upturn. Lack of investment means that every day these companies are depleting reserves. And it's getting tougher from a regulatory and environmental angle.
Lead times have probably doubled for most projects. I know of one promising copper mine that's already eight years into what was meant to be a three-year permitting process. Tom: In 20 years' time, history will judge this an aggressive pause in the current commodity cycle, exacerbated by the financial crisis.
The next phase won't be the same as pre it'll be driven by supply scarcity in selected commodities, rather than rampant demand from China but we are heading for another upturn. That's just one commodity. We'll see this time and again over the next few years the supply will not be there. Tom: And on the outlook for crude oil, when you look at the oil majors, particularly in Europe, you have both weak production growth and shareholders desperate for cash returns and capital spending restraint.
The shares have de-rated on the basis that growth will be weak. These two views are not compatible. If the oil majors cannot grow production, that tells us something about future supply. The crude market is much tighter than people realise. Will: Sugar, cocoa, and coffee are in uptrends right now. As for grain supplies, they have been run down over the last few years, but we've had a couple of pretty good years for global farming, so there's no immediate problem.
But weather can certainly disrupt the balance, and extreme events seem to be happening more often. Will: The roll out of unconventional oil and gas production outside of North America is in its infancy. It's tricky for private investors to pick individual stocks as it's such a diverse field geographically, but New City Energy LSE: NCE , a fund that we run, has just changed its focus to unconventional oil and gas companies not just in North America, but globally.
Will: America's success has opened a lot of people's eyes to the possibilities elsewhere. We've seen very early stage work in Argentina and Colombia. Will: Over a period of time. In Europe, the moment one country proves it is viable then other dominos may fall. But it won't happen overnight. Tom: The US has years of history, drilling rigs operating every day, and 30 mid-cap independents who have been trying this since George Mitchell unlocked the Barnett shale.
If it is to work elsewhere, it needs capital real money. But it's a very interesting theme. Rio is also well placed to deal with growing pressure to cut pollution in China. It produces a much higher grade of iron ore than its rivals in China. Higher-grade ore contains fewer pollutants, which means Rio could benefit from any regulatory changes.
Nicholas: We mainly buy ETFs, which track the return on commodities. If you take the view that the current run of bad US data is weather-related, and that China will maintain steady growth this year, then you want to look at the more cyclical metals, which should recover with demand. Both are used in vehicle catalysts. It's come down a long way, and a lot of potential bad news is now in the price.
Neil: We invest in lots of small- and mid-caps. Probably every year one or two have trouble, so just bear that warning in mind when you're investing in this area. It's a resource generator: it finds interesting geology, then farms out the drilling, so that somebody else carries the drill costs. It has made a big greenfield discovery in Serbia, south of the Bor mining complex. It's working with mining giant Freeport McMoRan on the project, which brings a lot of credibility.
The stock's done fairly well, but I think there's more potential it's got other prospects, and it's obviously a target for Freeport. Another stock, which has also doubled since we bought it last year, but which I think has further to go, is Fission Uranium Toronto: FCU. It's made a discovery in the south of the Athabasca Basin in Canada, which has revealed very high grades of uranium.
We think this will be a minable deposit. It's benefited from fire sales by the big firms. Barrick Gold has been getting rid of its marginal Australian gold mines. I also like diamonds as a sector. It's done well, but for the first time in a long time analysts have had to upgrade their forecasts.
It is growing production significantly over the next couple of years and is very well managed. It was part of the second-biggest oil discovery in the world last year, Ogo in Nigeria. It floated at 40p in May and has gone to 70p, but if the appraisal well is successful it could go much higher. We don't know the gas content of the structure yet, and the drilling campaign was more complicated than expected, but this is one to watch. People have thrown the baby out with the bathwater in the European oil-services sector.
They are missing key operating differences between these companies. Wood Group has a nice mixture of exposure to both capital spending and ongoing operational spending. It is happy going after lots of small bits of business, rather than the sorts of huge, headline-grabbing projects that have been subject to delays and cancellations. So on 12 times earnings, I think it's a good buy at these levels.
Some of the best value we can find globally in oil and gas is in emerging markets. As far as I'm concerned, some of the high-quality emerging-market oil stocks are already priced for a currency and equity meltdown. Exxon is on a multiple of more than 12, yet has zero production growth and to me there's also a growing threat of it making another big acquisition whereas these emerging-market oil and gas companies can grow organically, from deep resource bases.
So we think the country risks are priced in. When Europe begins to see a stronger recovery, natural-gas demand will rise. And once Gazprom's gas sales agreement with China is formalised and better understood, investors will get interested. John: I've heard this about the dividend a few times, is that still on the cards? Tom: It's been delayed and there's debate as to whether or not it will be retrospective versus forward looking, but the Russian state-owned companies are moving in the right direction.
I have much greater confidence in my Gazprom investment today than in the past. Will: Grade is king in so many mining matters. In recent years, we've rarely come across a miner with better grade than Sirius Resources Sydney: SIR , which has a nickel deposit in Australia. It's at the development phase there is still the possibility of more exploration success, but it's hopefully going to put this mine into production by the end of next year.
Nickel is mainly used in stainless steel. I think that, as with many metals, nickel's going to have supply problems in the future. Indonesia's having problems with exports and I think prospects for the nickel price look better than they have for a while. But such is the size and grade of this deposit that it should always make money whatever the nickel price. Agricultural commodities are a difficult area to play.
We're looking for the next firm that's going to boost crop yields, and we believe that's going to come from seeds and crop protection. The challenge for a small firm is to get in with a decent marketing group, but Plant has done that. We think that once the market cottons on to this application, it has terrific growth prospects. As a microcap it comes with all the usual risks, but in looking for agricultural investments this one certainly caught our eye.
It runs two oil fields in Kurdistan in Iraq. It's recently completed a pipeline to Turkey, which will boost capacity. It's also starting a big drilling campaign outside of Kurdistan, and it has quite a few interesting prospects in Morocco, Malta, and other areas. So we think those could be accretive to NAV as well. Make money from the metals mining boom in Latin America. How to buy into the next big commodities bull market. Three top investment trusts the market has overlooked.
Skip to Content Skip to Footer. John: What about the gold miners? John: How important is China? John: What's your take on the supercycle? John: What about agriculture and softs'? John: Let's move on to tips. John: So they're looking at potential shale plays outside the US?
Also known as income participating securities IPS. Income Stock A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock. Income Trust Also called income funds. Income trusts are trusts structured to own debt and equity of an underlying entity, which carries on an active business, or has royalty revenues generated by the assets of an active business. By owning securities or assets of an underlying business, an income trust is structured to distribute cash flows, typically on a monthly basis, from those businesses to unit holders in a tax-efficient manner.
The trust structure is typically utilized by mature, stable, sustainable, cash-generating businesses that require a limited amount of maintenance capital expenditures. An income trust is an exchange-traded equity investment that is similar to a common share. There are four categories of income trusts: business trusts; real estate investment trusts REITs ; energy trusts; and power, pipeline, and utility trusts.
Index A statistical measure of the state of the stock market, based on the performance of stocks. The ICCP is calculated without reference to volatility parameters. A key objective of broadcasting the ICCP is to provide market participants with an early indication of potentially large price movements at the close. Inflation An overall increase in prices for goods and services, usually measured by the percentage change in the Consumer Price Index. Inside Information Non-public information pertaining to the business affairs of a corporation that could affect the company's share price should the information be made public.
Insider All directors and senior officers of a company, and those who are presumed to have access to inside information concerning the company. Insider Trading There are two types of insider trading. The first type occurs when insiders trade in the stock of their company. Insiders must report these transactions to the appropriate securities commissions.
The other type of insider trading is when anyone trades securities based on material information that is not public knowledge. This type of insider trading is illegal. Intermarket Surveillance Group ISG An international committee comprised of members from 31 exchanges around the world, including every major stock exchange.
Membership in the ISG allows all members to share surveillance and investigative information to ensure that each regulator has access to the necessary information to effectively regulate its marketplace. The ISG promotes effective market surveillance among international exchanges and RS involvement helps ensure they are continually in touch with other regulators and part of the development of international best practices.
It consists of a two-character alphabetic country code specified in ISO , followed by a nine-character alphanumeric security identifier assigned by a national security numbering agency , and then an ISIN check-digit. Intrinsic Value The difference between the current market value of the underlying interest and the strike price of an option.
In-the-money is a term used when the intrinsic value is positive. Investment The purchase or ownership of a security in order to earn income, capital or both. Investments may also include artwork, antiques and real estate.
Investment Advisor A person employed by an investment dealer who provides investment advice to clients and executes trades on their behalf in securities and other investment products. Investment Capital Initial investment capital necessary for starting a business. Investment capital usually consists of inventory, equipment, pre-opening expenses and leaseholds. Investment Counsellor A specialist in the investment industry paid by fee to provide advice and research to investors with large accounts.
Investment Dealer Securities firms that employ investment advisors to work with retail and institutional clients. Investment dealers have underwriting, trading and research departments. The Association's role is to foster efficient capital markets by encouraging participation in the savings and investment process and by ensuring the integrity of the marketplace.
Investment Fund A closed-end fund that offers investors the ability to buy a security that represents a portfolio of investments with a specific investment strategy. These products use funds raised through a public offering to invest in a portfolio of securities, which are actively managed to create income streams for investors, typically through a combination of dividends, capital gains, interest payments, and in some cases, income from derivative investment strategies.
These funds are not directly related to an operating business. Some examples are: funds of income funds, senior loan funds, mortgage-backed security funds, and commodity funds. Investor Relations A corporate function, combining finance, marketing and communications, to provide investors with accurate information about a company's performance and prospects.
It is the stated prospectus price multiplied by "the number of securities issued under the IPO plus the over allotment". Issue Any of a company's securities or the act of distributing the securities. Issued shares refer to the portion of a company's shares that have been issued for sale. A company does not have to issue the total number of its authorized shares.
Issue Status The trading status of a class or series of an issuer's listed securities, such that a class or series of listed securities of an issuer may be halted, suspended, or delisted from trading. Issued and Outstanding Securities Commonly refers to the situation where the number of issued securities equals the number of outstanding securities.
However, under certain corporate statutes in Canada, an issuer may have issued securities and then repurchased those securities without cancelling them. In that case, the securities are issued but are not outstanding. As a result, the number of issued securities does not equal the number of outstanding securities. Issuer Status The trading status of a listed or formerly listed issuer.
Issuer status types include: delisted, listed, suspended, and trading. Jj Jitney Order The execution and clearing of orders by one member of a stock exchange for the account of another member. For example, investment dealer A is a small firm whose volume of business is not sufficient to maintain a trader on the exchange.
Instead, investment dealer A gives its orders to investment dealer B, a larger organization which is a member of the exchange, for execution. Investment dealer A pays a reduced percentage of the normal commission. Junior Corporation A young company in the early stages of operations and growth. If the MOC closing price acceptance parameters are exceeded, it equals the last board lot sale price of the security on the exchange in the regular trading session.
For any other listed security, the last sale price equals the last board lot sale price of the security on the exchange, in the regular trading session. Last Trading Day The last day on which a futures or option contract may be traded. Liabilities The debts and obligations of a company or an individual. Current liabilities are debts due and payable within one year. Long-term liabilities are those payable after one year.
Liabilities are found on a company's balance sheet or an individual's net worth statement. Limit Order An order to buy or sell stock at a specified price. The order can be executed only at the specified price or better. A limit order sets the maximum price the client is willing to pay as a buyer, and the minimum price they are willing to accept as a seller.
Liquidating Order An order to close out an existing open futures or options contract. A liquidating order involves the sale of a contract that has been purchased or purchase of a contract that has been sold. Liquidity This refers to how easily securities can be bought or sold in the market. A security is liquid when there are enough units outstanding for large transactions to occur without a substantial change in price. Liquidity is one of the most important characteristics of a good market.
Liquidity also refers to how easily investors can convert their securities into cash and to a corporation's cash position, which is how much the value of the corporation's current assets exceeds current liabilities. Listed Stock Shares of an issuer that are traded on a stock exchange. Issuers pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges.
Listing Application The document that an issuer completes and submits to an exchange when it applies to list its shares on the exchange. The issuer must disclose its activities, plans, management and finances in the application.
Long A term that refers to ownership of securities. Low Price The lowest price at which a board lot trade was executed during a period of time. Mm Margin Account A client account that uses credit from the investment dealer to buy a security. A client needs to deposit a margin amount with the balance advanced by the investment dealer against collateral such as investments. The investment dealer can make a margin call, which means the client must deposit more money or securities if the value of the account falls below a certain level.
If the client does not meet the margin call, the dealer can sell the securities in the margin account at a possible loss to cover the balance owed. The investment dealer also charges the client interest on the money borrowed to buy the securities. Market The place where buyers and sellers meet to exchange goods and services.
It also represents the actual or potential demand for a product or service. Market Capitalization The number of issued and outstanding securities listed for trading for an individual issue multiplied by the board lot trading price.
Should a trading price not be available, a bid price, a price on another market, or if applicable, the price for an issue of the same issuer which the first issue is convertible into, may be used. Total market capitalization for a market is obtained by adding together all individual issue market capitalizations warrants and rights excluded. Escrowed shares are excluded from TSX Venture market capitalization.
Market Maker A trader employed by a securities firm who is required to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities up to a specified minimum guaranteed fill. Market makers for the stock of issuers listed on Toronto Stock Exchange are referred to as Registered Traders. MOC accepts confidential market orders from before the open and throughout the trading session, maintaining them in time priority.
Twenty minutes before the close of the trading session, MOC publicly broadcasts an imbalance of buy and sell MOC market orders and asks for limit MOC orders to offset the imbalance. Ten minutes before the close of the trading session, MOC publicly broadcasts an Indicative Calculated Closing Price ICCP that provides market participants with an indication of what the calculated closing price would be assuming the regular trading session had ended at that time see Indicative Calculated Closing Price for more details.
At the close, MOC matches orders, from the MOC and continuous market books, at a calculated closing price which assures the most matches closest to the last sale price , and allocates the fills according to price and time priority. Market Order An order to buy or sell stock immediately at the best current price. This information product shows the committed, tradable volume of the top 5 bids and asks for each Toronto Stock Exchange or TSX Venture Exchange-listed stock.
Material Change A change in an issuer's affairs that could have a significant effect on the market value of its securities, such as a change in the nature of the business or control of the issuer. Under the principle of continuous disclosure, a listed issuer must issue a news release and report to the applicable self-regulatory organization as soon as a material change occurs. Minimum Fill Order A special term order with a minimum fill condition will only begin to trade if its first fill has the required minimum number of shares.
For example, an order to buy 5, shares with a minimum volume of 2, shares can only trade if 2, or more shares become available. A Registered Trader will provide the stock should the book be below the required limit. To be eligible for MGF, an order has to be a tradable client order with a volume less than or equal to the MGF size, which varies from stock to stock.
Minimum Price Fluctuation The minimum price change or tick on a futures contract. Mixed Lot or Broken Lot An order with a volume that combines any number of board lots and an odd lot. Money Market Part of the capital market established to buy and sell short-term financial obligations. These include federal government treasury bills, short-term Government of Canada bonds, commercial paper, bankers' acceptances and guaranteed investment certificates.
Longer-term securities are also traded in the money market when their term shortens to three years. It is intended to reduce costly duplication of disclosure requirements and other filings when issuers from one country register securities offerings in the other.
Under the rules, eligible cross-border offerings are governed by the disclosure requirements of the issuer's home country. These orders are guaranteed a complete fill at the opening price to offset expiring options. They must be ordered between p. Mutual Fund A fund managed by an expert who invests in stocks, bonds, options, money market instruments or other securities. Mutual fund units can be purchased through brokers or, in some cases, directly from the mutual fund company.
Nn Naked Writer A seller of an option contract who does not own a position in the underlying security. Net Change The difference between the previous day's closing price and the last traded price. Net Worth The difference between a company's or individual's total assets and its total liabilities. Also known as shareholders' equity for a company. New Issue A stock or bond issue sold by a company for the first time.
Proceeds may be used to retire the company's outstanding securities, or be used for a new plant, equipment or additional working capital. New debt issues are also offered by governments. New Issuer Listing Occurs concurrently with the posting of the new issuer's securities for trading. The preconditions for listing include the acceptance by the Exchange that all listing requirements and conditions have been satisfied. The effective listing date is the date when the listed securities open for trading.
These applications in themselves provide prospectus-level disclosure; however, often the listing application is accompanied by an offering document or a prospectus. The issuer's security would be delisted from TSX Venture Exchange and listed on TSX at the same time, permitting continuous listing of the securities on contiguous exchanges.
The offering is often made in conjunction with an issuer's initial application for listing on an exchange. A plan of arrangement is a form of corporate reorganization that must be approved by a court and by the corporation's shareholders or others affected by the proposed arrangement, all as prescribed by corporate legislation. A plan of arrangement can take various forms, including:. New Issuer Listing - Spin-Off A reorganization that usually results in a newly listed issuer acquiring a business division or assets as its principal operating asset from another issuer the reorganized issuer , with security holders of the reorganized issuer holding securities in both issuers, following completion of the reorganization.
The issuer's security would be delisted from TSX and listed on TSX Venture Exchange at the same time, permitting continuous listing of the securities on contiguous exchanges. New Listing A security issue that is newly added to the list of tradable security issues of an exchange. It is accompanied with a new listing date.
They are identified with an extension of "H" added to their stock symbol. Non-Certificated Issues An issue that is recorded on the transfer agent's electronic book rather than being held as a physical note. Non-Client Order An order from a Participating Organization or an order a firm is executing on behalf of an institution, such as a mutual fund. An "N" denotes a non-client order in the book. Non-Exempt Issuer A listed issuer that is subject to special reporting rules.
Non-Net Order A special-term order when there is a clear understanding between the buying and selling parties that they will settle the trade directly with each other. Non-Resident Order A special term order when one or more participants in the trade is not a Canadian resident.
Oo Odd Lot A number of shares that are less than a board lot, which is the regular trading unit decided upon by the particular stock exchange. An odd lot is also an amount that is less than the par value of one trading unit on the over-the-counter market.
For example, if a board lot is shares, an odd lot would be 99 or fewer shares. One-Sided Market A market that has only buy orders or only sell orders booked for a particular security. An on-stop order becomes a limit order once a trade at the trigger price has occurred.
Ontario Securities Commission The government agency that administers the Securities Act Ontario and the Commodity Futures Act Ontario and regulates securities and listed futures contract transactions in Ontario. Open Order An order that remains in the system for more than a day. Open-End Investment Fund An investment fund that continuously offers its securities to investors and stands ready to redeem its securities at all times.
Examples of an open-end fund are traditional mutual funds and exchange-traded funds ETFs. Option The right, but not the obligation, to buy or sell certain securities at a specified price within a specified time. A put option gives the holder the right to sell the security, and a call option gives the holder the right to buy the security.
Option Class All options of the same type, either calls or puts, that have the same underlying security. Option Holder The buyer of an option contract who has the right to exercise the option during its lifetime. Option Writer The seller of an option contract who may be required to deliver call option or to purchase put option the underlying interest covered by the option, before the contract expires.
Order Number An eight or nine-digit number assigned to every order entered into the system. Almost all bonds and debentures, as well as some stocks, are traded over-the-counter in Canada. An OTC market is also known as an unlisted market. Pp Par Value A security's nominal face value. Partial Fill An order receives a partial fill when it trades only part of its total committed volume.
However, only POs are also involved in all aspects of the securities business, including underwriting new issues and other financings, and assisting companies in the initial public offering IPO process. Portfolio Holdings of securities by an individual or institution. A portfolio may include various types of securities representing different companies and industry sectors.
Position Limit The maximum number of futures or options contracts any individual or group of people acting together may hold at one time. They are investment vehicles that have underlying businesses that are utilities, power generation companies, or pipeline companies. Preferred Share A class of share capital that entitles the owner to a fixed dividend ahead of the issuer's common shares and to a stated dollar value per share in the event of liquidation.
It usually does not have voting rights, unless a stated number of dividends have been omitted. Pre-Opening Session A session from a. ET when orders can be entered into the Toronto Stock Exchange's systems. Tradable orders will be queued until after a. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at.
Principal Trade A trade when a Participating Organization is either buying from, or selling to its client. Priority If there are several orders competing for a stock at the same price, a priority determines when one of these orders will be filled before any other at this price. Priority is based on the time at which the order is received into the system. Private Placement The private offering of a security to a small group of buyers.
Resale of the security is limited. The number of securities is the actual number issued. The composition of the financing could take the form of units comprised of multiple securities. Professional and Equivalent Real-Time Data Subscriptions The total number of professional accesses to real-time products of TSX and TSX Venture Exchange, as well as non-professional accesses that are priced the same or at a minimal discount to the professional access rate for the same product. Profit What is left over for the owners of a business after all expenses have been deducted from revenues.
Gross profit is the profit before corporate income taxes. Net profit is the final profit of the business after taxes have been paid. Prospectus A legal document describing securities being offered for sale to the public. It must be prepared in accordance with provincial securities commission regulations. Prospectus documents usually disclose pertinent information concerning the company's operations, securities, management and purpose of the offering.
Push-Out A push-out occurs during a stock split when new shares are forwarded to the registered holders of old share certificates, without the holders having to surrender the old shares. Both the old and new shares have equal value. Put Option A put option is a contract that gives the holder the right to sell a specified number of shares at a stated price within a fixed time period. Put options are purchased by those who think a stock may decline in price. Rr Rally A brisk rise in the general price level of the market or price of a stock.
Real Estate Investment Trust REIT Typically, a closed-end investment fund that trades on an exchange and uses the pooled capital of many investors to purchase and manage income properties. Equity REITs primarily own commercial real estate, such as shopping centres, apartments, and industrial buildings. By taking advantage of the trust structure, REITs offer tax advantages beyond traditional common equity investments to investors and provide a liquid way to invest in real estate, which otherwise is an illiquid market.
Redeemable Security A security that carries a condition giving the issuer a right to call in and retire that security at a certain price and for a certain period of time. Registered Traders A trader employed by a securities firm who is required to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities up to a specified minimum guaranteed fill. Their duties include providing a minimum guaranteed fill, maintaining minimum spread and ensuring orderly trading.
Retractable Security A security that features an option for the holder to require the issuer to redeem it, subject to specified terms and conditions. Rights A temporary privilege that lets shareholders purchase additional shares directly from the issuer at a stated price. The price is usually less than the market price of the common shares on the day the rights are issued. The rights are only valid within a given time period.
It is market capitalization weighted, with weights adjusted for available share float, and includes securities of 60 issuers balanced across ten economic sectors. It is the leading benchmark used to measure the price performance of the broad, Canadian, senior equity market. This index does not have a fixed number of constituents. Seat The traditional term for membership on a stock exchange. An investment dealer or brokerage buys a seat on the exchange and one employee is designated as the seat holder.
As Toronto Stock Exchange is now demutualized, there are no longer seats on the exchange. It is the stated prospectus price multiplied by the "number of securities issued under the offering plus the over allotment". Securities Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.
Securities Commission Each province has a securities commission or administrator that oversees the provincial securities act. This act is a set of laws and regulations that set down the rules under which securities may be issued or traded in that province. Members include banks, brokers, dealers and mutual fund companies.
SEDAR is an electronic filing system that allows listed companies to file prospectuses and continuous disclosure documents. The Canadian Securities Administrators, Canadian Depository for Securities Limited and the filing community developed it, with co-operation from legal firms and stock exchanges. Seed Stock The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering IPO.
Self-Regulatory Organization An organization recognized by securities administrators as having powers to establish and enforce industry regulations to protect investors and to maintain fair, equitable and ethical practices in the securities industry. Settlement The process that follows a transaction when the seller delivers the security to the buyer and the buyer pays the seller for the security.
Settlement Date The date when a securities buyer must pay for a purchase or a seller must deliver the securities sold. Settlement must be made on or before the third business day following the transaction date in most cases. Settlement Price The price used to determine the daily net gains or losses in the value of an open futures or options contract. Share Certificate A paper certificate that represents the number of shares an investor owns.
Short Selling The selling of a security that the seller does not own naked or uncovered short or has borrowed covered short. Short selling is a trading strategy. Short sellers assume the risk that they will be able to buy the stock at a lower price, cover the outstanding short, and realize a profit from the difference. Special Terms Orders which must trade under special conditions. For example, a cash order will be settled sooner than the usual three-day settlement period.
Special Trading Session A session during which trading in a listed security is limited to the execution of transactions at a single price. Speculator Someone prepared to accept calculated risks in the marketplace for attractive potential returns. Split Shares Capital and preferred shares issued by a split-share corporation.
A split-share corporation holds common shares of one or more companies. The corporation then issues two classes of shares - capital shares and preferred shares. The objective is to generate fixed, cumulative, preferential dividends for the holders of preferred shares and to enable the holders of the capital shares to participate in any capital appreciation or depreciation in the underlying common shares. Standing Committees Committees formed for the purpose of assisting in decision-making on an ongoing basis.
The issuer or its representative provides the amount, payable date, and record date. Stock Index Futures Futures contracts which have a stock index as the underlying interest. Stock List Deletion A security issue that is removed or delisted from the list of tradable security issues of an exchange. It is usually accompanied with a reason for deletion and the deletion date. Stock Price Index A statistical measure of the state of the stock market, based on the performance of certain stocks.
Stock Split A corporate action that increases the number of securities issued and outstanding, without the issuer receiving any consideration for the issue. Approval by security holders is required in many jurisdictions. Each security holder gets more securities, in direct proportion to the amount of securities they own on the record date; thus, their percentage ownership of the issuer does not change.
For example, a two-for-one stock split involves the issuance of two new securities for every old security. Stock Symbol Extension The character or characters that may follow the stock symbol to uniquely identify a listed security. It can be a single alphabetic character, two alphabetic characters, or a combination of two plus one characters with a maximum of eight characters for the stock symbol, extension and separator dots in between.
For example, BMO. Currently, they include:. Street Certificate These are certificates registered in the name of a securities firm rather than the owner of the security. This makes the certificate easily transferable to a new owner. Strike Price The price the owner of an option can purchase or sell the underlying security. The purchases and sales are also known as calls and puts. Structured Products Closed-end or open-end investment funds, which provide innovative and flexible investment products designed to respond to modern investor needs, such as yield enhancement, risk reduction, or asset diversification.
Based on the investment strategy, the portfolio can purchase a basket of securities, track an index, or hold a specific type of security or portion of a security. The subcategories under the structured products include: investment funds, ETFs, capital trusts, split share corporations, and mutual fund partnerships. Substitutional Listing A broad category of transactions that involves one security on the stock list being replaced by another security or securities. Supplemental Listing A type of listing transaction, made after an issuer's original listing, that involves the listing and posting for trading of a new issue of securities.
Typically, this involves the listing of preferred shares, rights, warrants, or debentures. Supplemental also covers the additional listing of when-issued shares through a secondary offering of an issue that is already listed. It is the stated prospectus price multiplied by the "number of securities issued under the supplemental listing plus the over allotment". Suspended Issue The status of a listed security of an issuer whose trading privileges have been revoked by the Exchange.
All securities of the issuer remain suspended until trading privileges have been reinstated, or the issuer is delisted. The listed issuer remains suspended until trading privileges have been reinstated, or the listed issuer is delisted. Symbol Change A change in a listed issuer's stock symbol, which may be required by the Exchange in the context of an issuer's reorganization or may be made at the request of the issuer.
A requested symbol is available for use if it is appropriate for the type of security and the issuer's voting structure. Tt Thin Market A market that occurs when there are comparatively few bids to buy or offers to sell, or both. The phrase may apply to a single security or to the entire stock market. In a thin market, price fluctuations between transactions are usually larger than when the market is liquid.
A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock. Tick Slang used for minimum spread. Depending on the stock price it could be a half-cent, one cent or five cents. Ticker Tape Each time a stock is bought and sold, it is displayed on an electronic ticker tape. It is a record of current trading activity on an exchange.
Tier 1 is for advanced companies with a certain level of net tangible assets and earnings. Tier 2 is for more junior venture companies. Time Time refers to the time period you would like to see charted from the drop-down menu box labelled "Time". These options give you a choice of intraday pricing data "Daily", "1-Minute", "5-Minute", "Minute" and "Hourly" options.
The additional options refer to end-of-day pricing data. Time Value The difference between an option's premium and its intrinsic value. Timely Disclosure Policy This policy requires all listed companies to publicly disclose material information in a timely manner. TL1 Toronto Level 1 TL1 is a real-time service for listed senior equities that provides trades, quotes, corporate actions and index information from TSX. TL2 Toronto Level 2 TL2 is a real-time service for senior equities that shows all of the committed orders and trades for each TSX listed security in real time.
Toronto Stock Exchange Canada's national stock exchange, which serves the senior equity market. Total Number of Shares The total number of issued and outstanding shares for the security. Trading Halt A trading halt is imposed by the exchange, usually due to the dissemination of news that might impact a stock's price.
Trading Issue The status of a listed security of an issuer whose trading privileges are active on the Exchange. Trading Number The unique, 3-digit number assigned to each Participating Organization and Member to identify it for market transparency. Traded Value The total dollar value of shares traded during a trading session. It includes special items, such as extraordinary items or discontinued operations. It indicates the issuer's annualized earnings for the latest financial reporting period.
Transaction Date The date when the purchase or sale of a security takes place. Transactions As reported in exchange trading statistics, represents the total number of trades for a specified period. Take a position in the futures contract trading month you want to trade—the one with the closest expiration date will be the most heavily traded. When you open a position, the broker will set aside the required initial margin amount in your account. To hold the position, you must maintain sufficient capital in your account to cover the maintenance margin.
The maintenance margin is lower than the initial margin requirement. If your account value dips below the maintenance margin level, you will receive a margin call from your brokerage that will require you to liquidate trade positions or deposit additional funds to bring the account back up to the required level.
Close an open trade simply by entering an opposite order. For example, if you opened the trade by buying five E-mini Dow contracts, you would close the trade by selling them with the same futures contract expiration date. If you opened by selling five contracts short, you would need to buy five to close the trade.
Corporate Finance Institute. CME Group. Charles Schwab. TD Ameritrade. Accessed April 15, Financial Futures Trading. Stock Trading. Stock Markets. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Options Trading. Futures Trading. Technical Analysis. Trading Stock Trading. Table of Contents Expand.
Futures Trading Basics. Using Leverage in Trading. Opening a Futures Account. Buying Long and Selling Short. Futures Margin Requirements. Key Takeaways Dow Jones futures contracts enable just about anyone to speculate on whether the broader stock market will rise or fall.
Dow futures contracts can be traded on leverage, meaning you only need to put up a fraction of the value of the contract. Dow futures markets make it much simpler to short-sell the broader stock market than individual stocks. Test your trading strategy before you start risking your hard-earned money. Article Sources. Investopedia requires writers to use primary sources to support their work.
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