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
Accountant - A person who carries out bookkeeping, auditing, and other financial reporting and analysis. This is a generic term referring to a wide range of skills from semi-clerical to highly trained professional work.
Account - A financial record of receipts and disbursements, income and expenses, credits and debits.
Accounting - The process of recording, measuring, classifying, summarizing, and interpreting economic activity.
Accounts payable - The outstanding bills of an enterprise; money owed to suppliers for goods and services purchased for the normal operations of the venture. Accounts payable are included on the balance sheet under current liabilities.
Accounts receivable - The money that is owed to a venture for goods and services that have been purchased from it or that have been committed as a grant or donation. Accounts receivable are included on the balance sheet under current assets.
Administered rates of interest - The various rates of interest established by financial institutions for various borrowers for various purposes (for example, for a car loan or a mortgage). Administered rates will be influenced by the risk of the borrower as well as by the prime rate of interest.
Administration - The management of non-profit or public organizations.
Advances - Payments made before they are due, as in giving an allowance before it's supposed to be paid.
Alimony - An income provided from one spouse to the other after a separation or divorce.
Allowance - An amount of money given to a child (usually weekly).
Amortization - The gradual elimination of a debt by making regular payments large enough to cover the amount borrowed and interest due.
Analysis - The process of separating a whole into its parts for closer examination.
Angels - Investors with capital to invest in new or growing business ventures.
Annual report - A report that a public company compiles once a year to describe its financial picture, business performance, and outlook.
Annuity - A contract that guarantees you a series of payments in exchange for your lump sum investment. Some are fixed-term and some are for life (as in insurance).
Anti-virus software - A specialized utility program that protects a computer system (memory and files) from becoming infected with a computer virus.
Application - An initial statement of personal and financial information that is required to approve a loan
Appraisal - An opinion of the market value of an asset as of a specific date.
Arbitrator - A third party who is appointed and given the power to resolve a labour dispute by determining what the settlement will be.
Arrears - Interest or dividends that were not paid when due but are still owed
Articles of Incorporation - A legal document filed with the province and/or federally that sets forth the purposes and regulations for a corporation.
Ask price - The price a seller is willing to accept for the security; also called the offer price.
Assessment - The value of a property, set by the local municipality, for the purposes of calculating property tax.
Asset - Anything that can be sold on which a money value, hence, can be placed. In a balance sheet, everything that an organization owns that can be expressed as a dollar value is listed. Assets include, for example, land, buildings, machinery, inventories, patents, cash, investments in other companies, and money owed.
Asset allocation - An investment strategy that relates to spreading your money around into different kinds of investment assets (for example, cash, fixed income investments, equities) so that you can diversify investments and manage the level of risk.
Automated teller machines (ATMs) - Machines that enable you to do a variety of financial transactions including withdraw cash, pay bills, and deposit money.
Back-end load - A sales commission charged when you sell mutual fund units.
Bad debts - Money owed to you that you can't collect.
Balance sheet - A record of the assets and liabilities that provides a snapshot of the financial condition of a business at a given time. The assets of the business must equal the liabilities plus the owner's equity.
Balancing a chequebook - A way to make sure that the bank and you agree on what's come into your account, what has left your account, and what remains in your account.
Bank card - A card issued by a financial institution that identifies the holder as a customer of the institution and allows access to accounts through an ATM/ABM.
Bank of Canada - Canada's central bank, which is responsible for implementing monetary policy and for such central bank services as issuing currency, supporting cheque clearing operations, and serving as banker and advisor to the federal government.
Bank rate - The rate at which the Bank of Canada makes short-term loans to chartered banks and other financial institutions and the benchmark for prime rates set by financial institutions.
Bank rate of interest - The interest rate charged by the Bank of Canada for short-term loans taken out by chartered banks. The bank rate will be influenced by factors such as inflation, the state of the economy, and government policy.
Base price - The cost (of, say, a car) without options but including standard equipment, warranty, and shipping.
Basis point - One basis point equals one-hundredth of one per cent.
Bear market - A stock market in which the average price level of stocks is falling over time.
Beneficiary - The person entitled to the proceeds of a life insurance policy or registered account when you die.
Bid price - The price a buyer is willing to pay for a security.
Blank cheque - A cheque that is complete in all respects except that it does not have an amount entered on it.
Blue chip - A term used to describe high quality stocks.
Board lot - A standard number of shares (usually 100) used in stock trading transactions.
Book value - 1. The original cost to an investor of a personal financial asset such as stock shares or a bond. 2. In a company's financial statement, the original cost of an asset less accumulated depreciation.
Boomerang kids - Kids who go off to postsecondary studies and return home after graduation to live with parents.
Bond - 1. A contract in which a borrower promises to repay a debt with interest by a specified time. 2. An investment security that represents a loan between the borrower who issued it and the lender who purchased it.
Bond market - The buying and selling of bonds at a price agreeable to the seller and the buyer.
Bouncing a cheque - Writing a cheque but not having the money in your account to cover it when it clears the banking system.
Break-even point - The point at which there is no profit or loss.
Broker - A person who charges a commission to handle orders to buy and sell investments or other property.
Brokerage firm - A company through which brokers operate.
Budget - A plan you make to spend or use your money during a certain period (for example, a week or a month).
Bull market - A stock market in which the average price level of stocks is rising over time.
Business - The production and sale of goods or services at a price with the goal of earning a profit. Such activity can be carried out by an individual, a family, a partnership, or an incorporated company.
Business cycle - The changing state of the economy over a period of time (for example, periods of recession, recovery, inflation) as measured by differences in the levels of production and employment.
Business sector - The major sectors in the economy are the government sector, the voluntary sector, the not-for-profit (or NGO) sector, and the business sector, which is involved in the privately owned, for-profit production and sale of goods and services.
Calculated risk - A risk that has been given thoughtful consideration and for which the potential costs and potential benefits have been weighed and considered.
Canada Pension Plan (CPP) - A federal social security program that pays monthly benefits to retired contributors, contributors' widowed spouses and/or orphaned children, and disabled contributors and their children.
Canada Savings Bond - A federal government bond that may be cashed at any time for its full face value and interest owed.
Canadian Bankers Association (CBA) - Professional industry association that provides information, research, advocacy, education, and operational support services primarily to the banking industry.
Capital - 1. In economics (also referred to as "capital goods"), the economic resource that takes the form of tools, equipment, and factories that are used to produce other goods and services. 2. In financial markets (also referred to as "money capital"), the funds available for investment in financial assets such as shares, bonds, certificates of deposit, or real property. 3. In business, the total funds invested in the company to enable it to carry out its activities.
Capital gain - The increase in the value of an asset.
Capital markets - Businesses access funds for investment through "capital markets" where lenders invest in businesses through bond markets or new owners invest by acquiring equity through stock markets.
Capital resources (or capital goods) - Economic resources (including everything from simple tools to commercial buildings) that have been produced by and sold to other producers who use them to produce something else.
Capitalism - An economic system in which government has a limited economic role. Most economic resources, goods, and services are privately owned, and the owners of capital resources have great wealth and power. Most economic decisions are made by individual buyers and sellers using a system of prices established in markets.
Capitalist - A person who owns shares in a business enterprise.
Cash - Money on hand or readily available.
Cash disbursements - The money spent in the process of running a business.
Cash flow - The actual deposits received and payments made that determine the balance in a firm's cash account.
Cash-flow statement - A detailed outline of estimated revenues to be received and payments to be made over a period of time.
Cash receipts - The money received by a business from customers.
Cash surrender value - The amount that will be paid out if certain kinds of life insurance policies are cancelled.
CD-ROM (Compact Disk-Read Only Memory) - An optical disk with an extremely large storage capacity. CD-ROMs contain data (text, graphics, sound, animation, video) that can only be read and not altered.
Certificate - The document providing evidence of the ownership of a bond, stock, or other security.
Certification - A process by which employees obtain the legal right to bargain collectively with their employer through a trade union
Certified cheque - A cheque whose payment is guaranteed by the issuing bank.
Chartered banks - Financial institutions that are regulated under Canada's Bank Act.
Chequing account - A type of bank account in which you can access your money by writing cheques (written orders for payment of a certain amount of money).
Claw-back - Refers to the government reducing or eliminating a benefit (such as Old Age Security) as the income of the recipient rises.
Closed mortgage - A mortgage that limits your ability to make additional payments until the "term" is up.
Closing - The day the legal title to a property changes hands.
Codicil - A properly witnessed update or change to a will.
Collateral - Property such as a house or a car pledged as a guarantee for repayment of money.
Collectibles - Commodities (for example, stamps, antiques) that are saved for fun and/or in the hope that they will increase in value over time.
Collective bargaining - The process in which a union negotiates the terms and conditions under which its members will work for an employer
Commission - A portion or percentage of the transaction price payable to the agent acting on behalf of the client.
Common law - Usual legal practice as determined by centuries of use based on judicial interpretation of cases.
Common stock - An investment representing part-ownership of a company.
Comparative advantage - The ability of a person, company, or country to produce a good or service at a lower cost (that is, more efficiently) relative to other goods and services.
Competition - A market in which rival sellers are trying to gain extra business at one another's expense and thus are forced both to be as efficient as possible and to hold their prices down as much as possible. Competition is thus a sophisticated yet uncoordinated mechanism that sorts out the actions of millions of buyers and sellers and uses the resulting pattern of supply and demand to determine what shall be produced, in what quantities, and at what price.
Compounding - Earning interest not only on the money saved or invested but also on the interest being earned on the saved or invested funds-that is, interest earning interest over time.
Computer virus - A computer program or piece of code that can cause damage to computer files and/or computer memory.
Computer workstation - All of the components of the work area where the computer system is located including the keyboard, monitor, disk drive, printer, and furniture.
Conciliator - A third party who is appointed to help labour and management resolve their differences to successfully negotiate a contract.
Conglomerate - A company directly or indirectly operating in a variety of industries, usually unrelated to each other.
Constitutional rights - Freedoms and powers enjoyed by individuals and as defined by the Canadian Charter of Rights and Freedoms. They include fundamental freedoms and democratic, legal, mobility, and equality rights intended to limit the power of government. They are the most secure of all rights since they require a constitutional amendment to change.
Consumer - The purchaser of the "end" product. For example, wheat can be sold to a miller who can mill the wheat to flour and sell it to the baker who can then bake bread and sell it to the consumer - the end-user who actually uses or consumes the final end product.
Consumer goods and services - These are purchased for use by the-end user - a consumer - unlike "intermediate goods or services" that are purchased by a producer in the course of production activities.
Consumer Price Index (CPI) - The most commonly cited measure of inflation. Measures the change in the average price that consumers pay for the goods and services they buy. A change in prices changes the buying or purchasing power of money. A rise in prices means a decrease in purchasing power, and vice versa. Contract - An agreement outlining the responsibilities, liabilities, and benefits between two or more parties.
Contract of sale - The agreement between buyer and seller on the purchase price, terms, and conditions of a sale enabling both parties to transfer the title of ownership from the seller to the buyer.
Cooperative - A form of business organization where each member has one vote regardless of the level of investment that is made. A cooperative is often set up by members to address specific needs of members, but many cooperatives also provide goods and services for sale to the general public.
Corporation - A form of business organization created under provincial or federal statutes that has its own legal identity separate from its owners. It has the advantage of being able to raise large amounts of money by selling shares to owners whose liability is limited to losing the amount they invested.
Co-signers - Joint signers of a loan agreement who pledge to meet the obligations in case of default.
Cost of living allowance (COLA) - Some collective agreement include this item, which is designed to protect workers' income from inflation by automatically increasing wage rates by the rate of inflation.
Cottage industry - A method of production that was carried on in the homes of the workers that used labour and relatively simple, inexpensive capital resources (for example, spinning wheel, hand loom).
Coupon rate - A bond's annual interest rate.
Credit - 1. The promise of future payment in exchange for money, goods, services, or anything else of value. 2. That which contributes to a positive balance in an accounting statement (such as an individual's bank balance or a country's balance of payments).
Credit cards - Digitally encoded cards (for example, VISA, Mastercard) that permit one to borrow money or buy goods and services on credit up to a pre-set spending limit.
Credit history - A person's past record of repaying loans and making payments on time.
Credit risk - The risk one assumes under a financial contract that a borrower may fail to repay.
Creditor - Another term for a lender.
Currency - The coins and bills circulated through the financial system in a country to serve as money. Current yield - Annual income (interest or dividends) divided by the current price of a security such as a stock or bond.
Custodian - A bank, trust, or other financial institution that holds securities and cash in safekeeping.
Cybervestor - A person who invests using the Internet.
Cyclical unemployment - Unemployment caused by a general decrease in demand in the economy that historically happens with intermittent regularity.
Database (Electronic) - A specialized piece of software that organizes data, for easy retrieval, into fields, records, and files. It is maintained an electronic filing cabinet.
Day trading - The high risk trading practice of buying and selling a stock within the same day.
Death benefit - The amount stated in a policy contract as payable upon the death of the person whose life is insured.
Debenture - A bond unsecured by any pledge of property.
Debt - Money/assets owing from one individual or organization to another.
Debt/equity ratio - A calculation showing a business's debt as a proportion of its equity (worth) to provide one measure of the health of the business.
Debit - That which contributes to a negative balance in an accounting statement (such as an individual's bank balance or a country's balance of payments).
Debit cards - An electronic way to withdraw funds from your bank account or use money in your bank account to make a purchase.
Default - Failure to repay a debt or fulfill a financial obligation.
Deflation - Occurs when there is a decline in the average level of prices in an economy.
Demand - The desire, ability, and willingness on the part of individuals to acquire or make use of a good or service at a particular market price.
Deposit - Entering money into an account at a financial institution using cash, a cheque, or other means.
Depreciation - A method of calculating and writing off over time the costs of fixed assets such as machinery, buildings, trucks, and equipment.
Depression - A prolonged downturn in the economy and level of business activity.
Direct deposit - When an individual or company authorizes a "payer" to automatically make a deposit or payment (for example, payment of a salary) into an account at a financial institution.
Director - An individual elected by voting common shareholders at the annual meeting of a company/corporation to assist the company with decisions, policies, and strategic priorities.
Discount broker - Brokers who do not provide any investment advice to customers and, therefore, charge reduced commissions for buying and selling stocks, bonds, and mutual fund shares.
Distribution - The process by which resources, income, wealth, products, and services are divided among people and purposes.
Diversification - Putting money into different types of investments in order to reduce risk.
Dividends (dividend income) - The portion of a company's profits that is paid to the shareholders (owners).
Dividend reinvestment plans (DRIPS) - Plans that allow investors to have cash dividends automatically used to buy additional shares of the same stock.
The Dow Jones Industrial Average - A composite of the prices of 30 stocks selected from those listed on the New York Stock Exchange to illustrate the trend in prices.
Down payment - A partial payment of the total purchase price of an item made at the time of purchase of the item.
E-FILE - An electronic program that allows you to complete and send your income tax return to Revenue Canada by computer.
Earned income - Income received in exchange for the use of an economic resource (for example, a wage or salary in exchange for labour).
Economic efficiency - The extent to which resources are used for the purpose for which they are best suited and most desired by society.
Economic equity - The "fairness" with which economic resources are used in the production process and rewarded for their contributions.
Economic freedom - The extent to which decisions and actions are based on personal choice and preference rather than on such external determinants as laws, regulations, and the dictates of others.
Economic growth - 1. An increase in the production of goods and services. Economic growth is usually measured as the increase in gross domestic product over a specified period of time, after adjusting for inflation. 2. An increase in the capacity of an economy to produce due to more and/or better use of economic resources.
Economic performance indicators - Statistical measures of current economic conditions and changes (for example employment, inflation, productivity, growth).
Economic power - The ability of a person or group to influence personal, household, workplace, or societal economic conditions and outcomes.
Economic resources - The natural resources, labour, and capital goods (for example, equipment, tools, buildings) that are used to produce goods and services.
Economic scarcity - The problem created when relatively unlimited needs and wants exceed the availability of limited resources.
Economic stability - The economic goal of limiting undesirable changes in prices, employment, and production.
Economic statistics - The quantifiable economic information that serves as input to economic decisions and actions.
Economic surplus - Production of goods and services, and the attainment of income, that are beyond basic needs and that can be used in exchange for other things that are needed/wanted.
Economic sustainability - The extent to which an economy can use its resources to satisfy economic needs at the current rate or better into the future.
Economic system - The means (that is, the institutions and methods) used by a society to answer the basic economic questions that arise from economic scarcity: What will be produced? How will production be organized? And how will the goods and services used be distributed?
Economies of scale - 1.Reductions in the average cost of production achieved by increasing the volume of output and using the various factors of production more efficiently. 2. Decreasing the costs of producing each unit by spreading the fixed costs of production over a larger number of units produced. Efficiency - 1.The most effective use or allocation of one or more resources to yield the maximum benefits. 2. Reducing the cost per unit produced.
Employability skills - A set of skills identified by employers as important and that will tend to maximize the employment opportunities for an individual seeking work.
Employment independence - The extent to which a person or household can function without the need for employment income (for example, the ability of a person to "retire," or the necessity for a household to have two income earners).
Employment Insurance (EI) - A federal government program that provides an income benefit for individuals who are unemployed and who meet the criteria established for the program.
Endorse - To sign the back of a cheque in order to cash it or deposit it into an account at a financial institution.
Enterprising skills - The skills that enable an individual to (a) face tasks with a positive and creative attitude, (b) look for new and innovative solutions to needs and problems, (c) contend effectively with change, (d) organize a detailed plan for action, and then (e) mobilize the resources to achieve established goals or objectives - or maximize learning from failed experiences.
Entrepreneur - A person who organizes the resources and accepts the personal financial risks required to start a new business venture.
Entrepreneurial skills - These are the skills that are important to anyone wanting to succeed as an entrepreneur by assuming the risk and responsibility for leading the establishment of a new venture or organization.
Entrepreneurship - Involves the recognition of opportunities (needs, wants, problems, and challenges) and the use of resources to implement innovative ideas for new, thoughtfully planned ventures.
Equity - 1. The worth or value of the assets of a business or person after all debts are considered, subtracted, or settled. 2. Share of ownership.
Equity fund - A mutual fund that invests mainly in common stock.
Estate - The total net value of everything you own at the time of your death.
Executor - The person who has the responsibility and authority to distribute the assets in your estate according to the instructions in your will.
Expiry date - The date on which certain rights or contracts cease to exist.
Exports - Goods and services produced in one country that are sold and shipped to another. Merchandise exports (sometimes called visibles) consist of products or commodities; service exports (sometimes called invisibles) consist of banking and insurance services, transportation, travel and tourism, technology and know-how, and the receipts from foreign investment such as interest and dividends.
Externalities - A cost or a benefit of economic activity that affects people other than those directly involved in its use or production.
Face value - The amount that will be paid to the holder when a debt security, such as a bond, matures (comes to term).
Factory system - A method of production that replaced labour with a great deal of capital resources such as sophisticated machinery in a centralized location or factory in order to mass produce.
Fiduciary - An individual or institution holding a position as trustee (for example, an executor).
Financial planner - An professional who helps individuals understand and set up a financial plan with specific objectives and co-ordinate various financial activities.
Firewall - A system used to prevent access to or from a private network. Firewalls are often used by companies to prevent individuals outside of the company from accessing private networks that are connected to the Internet.
Fiscal year - A company's accounting year, which may not be the calendar year, for example, April 1st to March 31st.
Fixed expense - Costs for a company that do not vary with the quantity of a good or service produced.
Fixed-income investments - Investments such as bonds that produce a fixed amount of income that usually does not vary over the life of the investment.
Forecast - An estimate of the most likely future effects of a specific change or cause.
Foreclosure - A legal process by which a lender takes possession and ownership of a property when a borrower does not meet the financial obligations of repaying a debt.
Foreign currency - The paper and coins that are used by other countries as money.
Foreign exchange market - A market in which those who need or wish to sell different national currencies determine a currency's relative value (or exchange rate).
Foreign exchange rate - The "price" of one nation's currency in terms of another nation's currency.
Franchisee - A person or company that acquires the right or privilege to deal in, or establish an outlet for, a certain line or brand of good or service.
Franchisor - The owner of the franchise, including the corporate name, who sells licences to others who wish to operate outlets under the corporate name.
Front-end load - A sales commission charged at the time of purchase of mutual fund units.
Full-service brokers - Those who charge commissions for buying and selling stocks, bonds, and mutual funds for clients for whom they provide investment advice.
Futures - An agreement by a purchaser to buy a commodity (for example, wheat) at a future time at an established price.
Good - A tangible, physical product that has been produced by the economy to satisfy a consumer need.
Grace period - The time between the date that a loan payment is due and the date the borrower incurs a late-payment penalty.
Grievance procedure - The process for resolving disputes between the union and the employer, between employees, or between the union and its members.
Gross domestic product (GDP) - The total value of all goods and services produced by the economy in the past year.
Gross income - Overall total income before deductions such as taxes are subtracted.
Groupthink - The forces that tend to suppress or resist divergent thinking when a group is working to accomplish a specific task within a limited period of time.
Growth stocks - Shares of companies with earnings that are expected to increase at a greater rate than the average for the overall stock market.
GST - The federal Goods & Services Tax that is charged when a good or service is sold.
Guaranteed investment certificates (GICs) - A deposit-type investment offered by banks, trust companies, and other financial institutions that pays a predetermined interest rate for a specified period of time.
Guarantor - A person who agrees to pay a debt if the original debtor cannot.
Guardianship - Used in a will to decide who will care for a child if the parents should die.
Guilds - Medieval organizations of craftsmen or merchants that did things such as set standards of quality and terms and conditions of work, train workers, influence local authorities, and control competition.
Hedge - A protective manoeuvre; a transaction intended to reduce the risk of loss on an investment due to price fluctuations.
Holding company - A company that owns the securities of another company, in most cases with voting control.
Home banking - Using the telephone and computer to access bank accounts to pay bills, transfer funds, and so forth.
Human resources - A term used to refer to the effort, knowledge, and talent of people as their skills are applied in the workplace.
Human rights legislation - A form of statute law that established specific rights that protect the individual from unlawful discrimination by other individuals such as employers. Both federal and provincial governments create such legislation.
Idea - (for entrepreneurship) A new, creative approach to specifically addressing a perceived opportunity (a need, want, problem, or challenge).
Imports - Goods and services that were produced in a country other than where they were consumed.
Income - Money received in exchange for the use of an economic resource (for example, a wage or salary for labour) and known as "earned" income as well as gifts or government transfer payments that are known as "unearned" forms of income.
Index - A statistical measure of the change in something (for example, consumer or stock prices) that reveals trends.
Inflation - A rise in the average level of prices in an economy. Inflation is commonly measured by the Consumer Price Index (CPI).
Information technology (IT) - Deals with the accessing, processing, managing, and communicating of information electronically.
Innovation - The use of a new technology, item, or process to change what goods and services are provided, the way they are produced, or the way they are distributed.
Insider trading - Undeclared, unethical, and illegal securities trading by management or others who have special access to unpublished information.
Insurance - A promise of compensation for specific potential future losses in exchange for a periodic payment.
Insurance deductible - The portion of a loss that the insured must pay before the insurance company provides the balance.
Interac - A network that allows cardholders to access their accounts from any automated teller machine regardless of which financial institution member owns it.
Interest - Payments for the use of borrowed funds.
Interest rate - The yearly cost of borrowed money expressed as a percentage of the amount borrowed.
Intermediate good - A manufactured product that is purchased by a producer and quickly used up in the production, or even becomes a physical part, of another good or service (for example, sugar in a soft drink).
International trade - The exchanges of goods and services for money between producers and consumers of one country with those in another country.
Internet - An electronic computer-based global communications network connecting millions of computers.
Internet Service Provider (ISP) - A company that provides users access to the Internet, usually for a fee; may also provide e-mail services.
Intestate - When a person dies without leaving a will and the government assumes authority for deciding what will become of the person's assets and who will look after any orphaned children.
Intranet - A network similar in design to the Internet that is only accessible to individuals within an organization or with authorization. Intranets are usually behind firewalls for security purposes.
Intrapreneurship - The application of entrepreneurial skills and approaches within or by a company or corporation.
Invention - The creation of a new technology, item, or process.
Inventory - The quantity of a product that a producer has produced and has ready for sale (for example, on shelves, in warehouses, in storage areas).
Investment - 1. As used in economics, spending on capital goods such as factories, mines, and machinery so as to increase the productive capacity of the economy. 2. In its broader meaning, investment is any purchase of an asset in the hope that, over time, there will be an increase in the value of the asset.
Investment advisor - An individual licensed to provide advice on a wide range of investments including stocks, bonds, and mutual funds.
Investment capital - (start-up) Initial investment capital necessary for starting a business usually consisting of inventory, equipment, pre-opening expenses, and leaseholds.
Investment dealer - A brokerage firm or person within the brokerage firm licensed to buy and sell securities.
IPO (Initial Public Offering) - A new issue by a company of securities offered for sale to the public for the very first time to help raise additional funds for the company to support expansion, investment, and so forth.
Labour - The economic resource that includes all forms of human effort that results in the production of a good or service in exchange for a wage or salary.
Labour relations board - A group of experts in labour law who are appointed by government to administer and enforce labour regulations.
LAN (Local Area Network) - A computer network that connects computers in a small area, usually a single building. In a LAN environment, users at individual computer workstations can share data and peripheral devices.
Layoff - The act of suspending or dismissing a worker through no fault of the worker.
Leading indicators - Statistical measures that normally provide advance warning of economic change before it actually happens.
Lease - A contract that provides for the use of a car, real estate, or equipment for a specified period at a specified price.
Leverage - Using borrowed money to invest; to be a successful strategy, the cost of the borrowed money needs to be less than returns on the investment.
Leveraged buy-out - A takeover financed to a large degree by debt that is secured, serviced, and repaid through the cash flow and assets of the acquired company.
Liabilities - All the debts of a corporation, partnership, or individual; one part of the balance sheet. Liabilities include short-term or current liabilities (such as accounts payable, short-term debts, income and other taxes due, and the amount of long-term debt that must be paid within twelve months) and long-term liabilities (which include long-term debts and deferred income taxes). On a balance sheet, liabilities are subtracted from assets. What remains is the shareholder's equity, or ownership in the business.
Lien - The right of a creditor to claim the property of a borrower who does not repay a loan.
Line of credit - The amount of money a borrower may withdraw from a financial institution without specific timelines for repayment but at a particular rate of interest.
Liquidate - The process by which a non-cash asset (such as real estate) is converted to cash.
Liquidity - The degree of ease, and certainty of value, with which a security or other asset can be converted to cash at a reasonable market price.
Living will - Expresses a person's wishes about the kind of medical treatment desired in the event of serious terminal illness or brain death.
Loads - Sales commissions levied on buyers of mutual fund units.
Loan - Money provided by one person for use by another at a particular rate of interest.
Lockout - When a labour contract has expired and the employer closes the place of work to bring pressure on employees to sign a new contract. It is the equivalent of a strike against employees by the employer.
Logistics - The business process concerned with the effective and efficient flow of materials and information from the production source to the end-user/consumer.
Macroeconomics - The study of the overall aspects and workings of a national economy, such as income and output.
Management - The talent, skill, knowledge, and experience that are applied to maximizing the ability of an organization to achieve its current goals and objectives efficiently, productively, effectively, and, in the case of business, profitably. This is done through the four management functions: planning, organizing, leading, and controlling.
Management fee - The money paid to a mutual fund company for the expertise in managing the investment portfolio.
Markets - 1. Where buyers and sellers of commodities (goods, services, or resources) negotiate a mutually agreeable "price" or other "rate of exchange" so a trade may occur. 2. The demand, actual or potential, for a product or service.
Market economy - An economy in which the setting of prices and allocation of resources are determined largely by the forces of supply and demand and the individual decisions of consumers and producers.
Market index - A vehicle used to monitor trends in the market prices of securities. The best-known in Canada is the Toronto Stock Exchange 300 Composite Index (TSE 300).
Market price - The price at which a good or service can currently be acquired as a result of the interaction of the forces of supply and demand in the marketplace.
Marketable - A product or asset that is relatively easy to buy or sell.
Marketing - The design, planning, and implementation of a strategy related to the sale, distribution, and servicing of a product or service.
Maturity - The date when a loan or the principal amount of a bond comes due and must be paid back or redeemed.
Medium of exchange - That which is widely accepted in exchange for the use or purchase of a resource, good, or service or to pay a debt.
Merger - The process by which two or more companies decide to willingly and cooperatively combine their operations as a new larger company to achieve growth, join with a key supplier, join with a key competitor, expand international opportunities, or for some other strategic purpose.
Minimum payment - The least you can pay on a credit card's monthly bill without going into default and falling subject to collection activities.
Mobility (labour) - The ease with which labour can move from one job to another.
Monetary policy - The ability of the Bank of Canada to influence monetary conditions in the economy through changes in short-term interest rates and the money supply.
Money - A commodity, now most commonly issued by a government as official currency, that can be used to pay for goods and services, to measure the price of things, and to serve as a store of value.
Money laundering - A term describing the process of concealing money acquired through illicit means and converting it into seemingly legitimate income.
Money market - Where short-term securities such as treasury bills are bought and sold.
Money market funds - Funds offered by banks and mutual funds that invest in interest-bearing instruments such as certificates of deposit and treasury bills and that pay a variable rate of return.
Money order - A guarantee of payment that may be purchased from a post office or financial institution and used to pay a debt.
Monopoly - The condition in a market where there is only one supplier.
Monopsony - The condition in a market where there is only one buyer.
Mortgage - A contract providing security for the repayment of a loan registered against property, for example, for a house.
Mutual funds - A type of investment that collects small amounts of savings from many people allowing them to gain the advantages of investing in a large variety of securities that are managed by professionals.
Natural resources - Economic resources provided by an economy's geography that include arable land, water, climate, flora, fauna, and mineral and other deposits.
Net - The amount left after deducting all charges/costs (for example, net income).
Netiquette (InterNET ETIQUETTE) - The guidelines for proper Internet behaviour including e-mail and newsgroup communication.
New issue - An offering of stocks or bonds sold by a company for the first time.
Newsgroups - An online discussion group.
North American Free Trade Agreement (NAFTA) - An agreement among the United States, Canada, and Mexico that describes the terms and conditions that allow for freer trade among the three countries.
NSF (Not Sufficient Funds) cheque - When a cheque is written but there is not enough money in the account to cover the amount indicated on the cheque.
OAS (Old Age Security) - A pension that Canadians who meet certain residency requirements will receive at age 65 from the federal government.
Offer - 1.The lowest price at which a person is willing to sell or buy a product or asset. 2. In a financial market, the price at which a seller will sell a security.
Operating costs - Expenditures that are incurred to undertake current business activities.
Operating loan - A loan from a financial institution to a business that is meant to cover daily operating expenses.
Operating system - Software that manages the operations of a computer and peripheral devices.
Opportunity - (for entrepreneurship) A need, want, problem, or challenge that can potentially be addressed by an entrepreneurial idea and an entrepreneurial venture.
Opportunity cost - The loss of the benefits that would have been received from the next best alternative whenever a choice is made.
Option - A right to buy or sell specific securities or properties at a specified price within a specified time.
Organization - A collection of people working together to achieve a common purpose.
Owner manager - One who owns and operates a business.
Par value - The face value of a bond.
Partnership - An unincorporated business that is owned by two or more partners where at least one is a general partner (willing to assume unlimited liability for the obligations of the company). A general partner assumes the higher risk and is usually responsible for business decision making and operation as opposed to a limited partner (liable only up to the level of investment in the company).
Passbook - A book to record bank account transactions.
Patent - The legal right to ownership of an invention issued, in Canada, under the Patent Act.
Payable - A bill or liability that needs to be paid.
Payee - The party to whom the money is being paid.
Penny stocks - Highly speculative, low-priced stock (generally selling for under $1.00 a share).
P/E ratio - The price of a company's stock divided by its annual earnings.
Pension - Income payable to an individual for life after a specified age of retirement. Generally provided by a former employer or the government.
Peripheral devices - External devices attached to the computer (for example, printer, scanner, digitizer, digital camera).
Personal disposable income - The amount of pay or income remaining after tax; (also called take-home pay).
Personal Identification Number (PIN) - A three- to five-digit number code you select as your personal identifier and use to access money through an ATM.
Personnel - Persons collectively in the employ of a business.
Philanthropy - The act of giving to charitable causes.
Poison pill - Act undertaken by a corporation to make itself less appealing to those who might be planning an unwanted takeover of the company.
Portfolio - The collection or group of investments that are owned by an individual or organization.
Pricing - Setting the selling price of a good or service.
Prime rate of interest - The rate of interest charged by financial institutions to their best, lowest risk customers. The prime rate will be influenced by the bank rate, which is the interest rate charged by the Bank of Canada to financial institutions for short-term loans.
Principal - 1. The amount owed or the face value of a debt. 2. The amount invested. 3. The one who is directly concerned in a business enterprise.
Private corporation - An incorporated business in which the shares of the company can only be sold to those who are approved by other existing shareholders.
Private sector - That part of the economy where production is carried on by firms owned by individuals who compete against each other in markets in search of profit.
Productivity - Output of goods or services per unit of input (for example, widgets per worker).
Products - Frequently used as a collective term for "goods and services." A company's product may be a good or a service or both.
Profit - The remaining income provided to the owner(s) of a business after all expenses have been deducted from the revenues of a firm. Gross profit is the profit before corporate income taxes. Net profit is the final profit after all deductions and taxes have been made.
Profit margin - The difference between the selling price and the cost to produce a good or service.
Profit and loss statement - A list of the total amount of sales (revenues) and total costs (expenses) with the amount remaining shown as either a loss or a gain.
Promissory note - A written pledge to pay a set sum at a set time or on demand.
Prospectus - A written statement that discloses the terms of a securities offering or a mutual fund. Strict rules govern the information that must be disclosed to investors in the prospectus.
Proprietorship - A unincorporated business enterprise that is owned by a single owner.
Proxy - Written authorization given by a shareholder to someone else, who need not be a shareholder, to represent him or her and vote his or her shares at a shareholders' meeting for a corporation.
Public corporation - An incorporated business in which the shares of ownership can be traded publicly on a stock exchange without the approval of other shareholders.
Public infrastructure - Capital goods like roads, water, and systems of waste management provided by government and funded by taxes.
Public sector - That part of the economy where government provides goods and services.
Quality of life - A general measure of well-being that includes factors such as amount of leisure, education, health care, security, and environment quality for which no universally accepted definition or statistical device exists.
Quality of work life (QWL) - The overall quality of human experiences in the workplace.
Quit rate - The frequency with which workers leave their job for whatever reason.
Quotation or quote - The highest bid to buy and the lowest offer to sell a security at a given time.
Ratio - The relationship of one financial figure to another.
Recall procedures - Rules that determine the order in which employees who have been laid off shall return to work.
Receivable - A payment that is due to be received and for which an unpaid invoice is outstanding.
Recession - When economic output, as measured by gross domestic product (GDP), has declined for at least two consecutive three-month periods (quarters).
Reconciliation - Reviewing chequing and savings account records to make sure they agree with personal or company records.
Reference - A person (a teacher, former boss, or even a friend or neighbour) who can vouch for someone applying for a position.
Refund - The money an individual is entitled to receive if, after completion of the income tax return, more income tax has been paid than was required.
Repetitive Stress Syndrome (Repetitive Strain Injury) - Injury caused by the continuous and frequent repetition of small movements such as typing on a computer.
Reserve - Money or assets stored or held back for future use.
RESP (Registered Education Savings Plan) - A savings plan that enables deposits to grow tax-free until a child is ready to pursue a postsecondary education, at which time the money is withdrawn to help finance the costs.
Resource markets - Markets that determine the price (for example, wages, rents, interest) that producers must pay for the use of economic resources.
Resources - The raw materials, supplies, capital equipment, factories, offices, labour, management, and entrepreneurial skills that are used in producing goods and services.
Résumé - A summary of an individual's personal information including name, address, telephone number, jobs previously held, education, volunteer activity, relevant experiences, and references.
Retail - The process of selling goods and services directly to the public.
Retail banking - Services provided by a bank directly to the public. Services include cashing cheques, holding deposits, providing loans, and offering RRSPs or other investment options.
Retained earnings - All the profits that have accumulated for a business from prior years of operation less dividends paid to owners.
Return - The income earned from an investment.
Revenue - The total income a business firm or government receives from all sources.
Revoke - To cancel.
Rights - That to which the individual is entitled by law. The certainty of the entitlement depends on the nature of the law (constitutional, human rights legislation, statute law) that ensures it.
Risk - The degree of uncertainty associated with the potential outcome/result of an economic decision or action.
RRIF (Registered Retirement Income Fund) - An investment option available to RRSP holders, who must convert their RRSP plans by age 69. A certain amount, which increases each year, must be withdrawn from the plan yearly.
RRSP (Registered Retirement Savings Plan) - A method of saving available to individuals to defer tax on a specified amount of money to be used for retirement. The holder invests money in one or more of a variety of investment vehicles that are held in trust under the plan, and the return on investments is tax free until funds are withdrawn from the plan.
Salary - Payment for the use of labour calculated on a yearly rate.
Saving - The decision to accumulate personal or economic resources for later rather than current use.
Savings bonds - Offered/issued by government as a way of borrowing money. Interest is paid to bondholders in return for the "loan."
Scholarships - Money awarded to selected students, on the basis of set criteria, that help cover the cost of education. Scholarship funds do not have to be repaid.
Search engines - Enable users to search the World Wide Web for documents, contained in web sites, based upon one or more "keywords" used to guide the search.
Secured - Investments and loans that are protected or guaranteed by an asset.
Securities - Types of investments with fluctuating values, such as stocks and bonds, that can be bought or sold through various financial markets.
Seed money - The cash (capital) needed to start a new business.
Seniority - Years of service as measured by length of employment that is often used to help determine salary, benefits, promotions, and so forth due to the worker.
Service - 1. An intangible consumer or producer product that is usually consumed at the time it is produced and purchased. Examples include banking, teaching, engineering, and computer software. 2. An action performed for the consumer.
Service charge - A fee paid for using a financial service.
Shareholder - Someone who owns stock in a corporation.
SIN (Social Insurance Number) - A number that is assigned to every Canadian by the federal government usually when a person begins to work.
Small and medium-sized enterprises (SMEs) - Small businesses are those having authorized credit limits of $500,000 or less, whereas medium-sized businesses have authorization levels of up to $1 million.
Smart card - Uses a computer chip to store financial information and can be used to perform a number of financial functions.
Software - The general term for all programs (word processing, desktop publishing, and games) that are designed for use on a computer.
Sole proprietorship - A business venture that is unincorporated and owned by a single individual who assumes unlimited liability for the business. As such, the single owner is entitled to all of the profits and is also liable for all of the business's debts and obligations.
Spending money - Cash provided, usually to children, for one or more specific purposes.
Spouse - For income purposes, your husband, wife, or common-law partner.
Spreadsheet - A specialized software application, used primarily for the purpose of mathematical calculations, that contains data arranged in rows and columns.
Stagflation - When the economy displays both a relatively high rate of inflation and unemployment.
Stand-alone environment - An environment in which computer systems are not linked to each other via a network.
Standard of living - A statistical measurement used to describe the well-being of people in a society. The total value of all production is divided by the population to determine the "output per person." Also referred to as gross domestic product per capita.
Statement - A financial record of the transactions in an account over a period of time.
Statute law - Law made and subject to constant revision by legislatures. Although it must respect constitutional and human rights legislation, it is most dependent on political and ideological pressures.
Stipend - A fixed, regular payment.
Stock market - A market in which stocks of companies are sold from one shareholder to another at a price that is determined in the market via the interaction of buyers and sellers of that stock.
Stock split - The division of a company's common shares into a larger number of shares. In a 2-for-1 split, for example, each stockholder would receive an additional share for each share held.
Stocks - Shares of ownership in a corporation that can often be exchanged among owners through trading on a stock exchange.
Strategic plan - A process that aims to map out the means to achieve longer-term goals and to plan a response to unforeseen problems and opportunities.
Structural unemployment - A type of unemployment that can be long-term for some that is caused by rapid change that results in a shortage of workers with the required skills.
Subsidiary - A company that is controlled by another company.
Take-over bid - An offer made by one or more individuals or corporations to shareholders of a company in an effort to acquire sufficient shares to purchase or take control of the company.
Tax deadline - The date by which income tax forms for the accounting period must be submitted to avoid penalties.
Tax deductions - Expenses you are allowed to subtract from your income when calculating your income taxes.
Tax return - A government form that an individual must fill out annually to declare and reconcile income, expenses, and taxes.
Tax shelter - A savings plan that offers tax advantages usually by enabling savings or investment to grow without tax until they are removed from the "shelter."
Taxes - Payments such as income tax and sales tax that people make to governments.
Term - The period of time during which the interest and repayment conditions for a loan apply. At the end of the term, if the loan is not repaid, new conditions are established for a new term.
Term deposit - An investment product in which a fixed amount is deposited for a set period of time at an established rate of interest.
Testator - The person who makes a will.
Theory X - A description of human relations management that assumes that workers dislike their work, lack ambition, are irresponsible, resist change, and prefer to be led than to lead.
Theory Y - A description of human relations management that assumes workers by nature want to work, are willing to accept responsibility, are capable of self-direction and self-control as well as being imaginative, ingenious, and creative.
Third party costs - Costs of production or consumption that are paid by someone other than the producer or consumer who benefits. Pollution is an example of a third party cost. Third party costs are an example of an inefficient market.
Title - The written evidence that proves ownership of an asset.
Trader - Employee of a securities firm who executes buy and sell orders for securities for the firm and its clients in a money market or stock exchange.
Trading range - The spread of prices - from lowest to highest - within which a stock normally sells.
Transaction - When a deposit or withdrawal occurs in a financial account or when a good, service, investment, or asset is exchanged from one owner or producer to another owner or consumer.
Traveller's cheques - A money draft purchased from a financial institution that functions as cash but is protected against loss or theft
Treasury bills (T-bills) - Short-term debt securities issued by the federal government for periods of one year or less; one way in which government borrow funds.
Tripartite model - A model of labour management relationships that includes negotiations between three parties (labour, employers, and government) to establish wage rates, benefits, and conditions of work. Very successful in parts of Asia (for example, Singapore) and Europe (for example, Ireland) but not in North America.
Trust - A legal agreement that allows one person to hold, and make decisions about, financial assets for the benefit of someone else.
T-slip - Any employer, company, and/or government that pays you income must also send you a T-slip reflecting these amounts. (T-3 is for trust income, T-4 is employment income, T-4(A) is pension income, and T-5 is investment income.)
Underwriting - The process by which a securities firm purchases new securities (stock) issued by a corporation for the purpose of reselling it to clients. The securities firm earns a return for the service by acquiring the stock at a discounted price and selling it to clients at a higher price.
Unit labour cost - The cost of the labour required to produce one unit of output. It is often used to measure the competitiveness of different groups of labour. The lower the unit labour cost the better.
Variable expenses - Costs that vary with the quantity of good or service produced by a business.
Velocity - The number of times each dollar in the money supply is spent, on average, in a year.
Venture - Any initiative that entails the mobilization of resources to establish a good, service, or program to address needs, wants, problems, and challenges.
Venture capital - Money invested in a business by someone interested in financially supporting the venture.
Venture plan - A comprehensive written summary drawn up to establish the viability and direction of a new venture. It includes how the entrepreneur intends to organize resources to attain established goals. It is the "road map" for operating the venture and for measuring its progress on a monthly and annual basis.
Voice-mail - An electronic communication tool in which one can leave a spoken message for a recipient using a telephone.
Volume - The amount or quantity of business transacted in a market.
Voting right - The right of a shareholder to have a vote in the affairs of the company.