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The ratio of a company’s new orders to shipments in the same period. A book to bill ratio greater than 1.0 indicates sales growth. Ratios less than 1.0 reflect shrinking sales. Used mostly in the semiconductor industry.

Profiting on interest rate differentials. For instance, borrowing money at a relatively low short-term rate and lending it out a higher long-term rates. 

Largest companies have most influence on index price action.

Orders that do not trade immediately upon entry. These orders are also known as outstanding orders.

Indices for which there is a maximum relative weight by market capitalization for any one constituent. Any individual constituent of the index can represent no more than a specified percent of the index. The individual constituents of the S&P/TSX Capped Composite and S&P/TSX Capped 60 indices are capped at 10%, while the individual constituents of the S&P/TSX Capped sector indices are capped at 25%.

A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash.

After-tax earnings. Literally, the bottom line on an income statement (a.k.a. net income or profit). 

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. 

A false signal which indicates that the price of a stock or index has reversed to an upward trend, but ultimately proves to be false.

A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.