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.
Archives
Junior Corporation
A young company in the early stages of operations and growth.
Downtick
A trade is on a downtick when the last trade occurred at a price lower than the previous one.
Option Holder
The buyer of an option contract who has the right to exercise the option during its lifetime.
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.
Proxy Statement
Material given to stockholders when the corporation solicits shareholder votes. The proxy statement usually contains details on the corporation’s executive compensation plans.
Junk Bonds
Corporate bonds with poor credit ratings.
Downtrend
Stock price is heading down.
Option Series
An individual option contract for a given security.
Profit Margin
Bottom line (after tax) earnings divided by sales.