Backtesting

Determining the results of using particular screening criteria, as if the screen had been run at some point back in time, and the selected stocks or funds were held for a predetermined time period and then sold. 

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.

Multijurisdictional Disclosure System (MJDS)

A disclosure system that facilitates certain Canadian-U.S. cross-border securities offerings, issuer bids and takeover bids. 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.

Balance Sheet

A financial statement listing a company’s assets (what it owns) and liabilities (what it owes) as of a specific date, usually the last day of a company’s fiscal quarter. The difference between a company’s assets and liabilities is termed its net worth or shareholder’s equity. 

Stock Price Index

A statistical measure of the state of the stock market, based on the performance of certain stocks. Examples include the S&P/TSX Composite Index and the S&P/TSX Venture Composite Index.

Must-Be-Filled (MBF) Order

Orders placed before the market opens to buy or sell shares of stocks when their options expire. These orders are guaranteed a complete fill at the opening price to offset expiring options. They must be ordered between 4:15 p.m. and 5:00 p.m. on the Thursday before the third Friday of each month.

Basing

This occurs when a stock trades sideways in various signature patterns (e.g., cup with handle, saucer base, flat base) while it is under accumulation prior to its next move up. We look for these stocks as they can lead to explosive moves out of the bases.

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.