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The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering (IPO).

Usually involves looking for stocks in a strong uptrend (high relative strength), strong earnings growth, and increasing earnings forecasts. In today’s market, may include relative strength only.

The true value of a stock based on criteria of the user’s choosing. A stock is said to be overvalued when the share price exceeds the fair value.

Material given to stockholders when the corporation solicits shareholder votes. The proxy statement usually contains details on the corporation’s executive compensation plans. 

An analyst employed by a brokerage house such as Merrill Lynch.

Companies currently in favor by investors (price/sales greater than 10, price/earnings greater than 35 or so).

The number of issued and outstanding shares of a company, excluding shares held by persons who, individually or in conjunction with other persons, hold 20% or more of the issuer’s voting securities.

An IPO trading below its issue price in the aftermarket.

The dollar value of secondary offering securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. It is the stated prospectus price multiplied by the “number of securities issued under the offering plus the over allotment”.

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.