Securities

Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.

Rally

A brisk rise in the general price level of the market or price of a stock.

Short Selling

The selling of a security that the seller does not own (naked or uncovered short) or has borrowed (covered short). Short selling is a trading strategy. Short sellers assume the risk that they will be able to buy the stock at a lower price, cover the outstanding short, and realize a profit from the difference.

Stop Order

An order placed which is not at the current market price. It becomes a market order once the security touches the specified price. Buy stop orders are placed above the present market price. Sell stop orders are placed below the present market price (also known as a stop loss). If a stock gaps past the stop order, it becomes a market order and is filled at the next trading price.

Securities Commission

Each province has a securities commission or administrator that oversees the provincial securities act. This act is a set of laws and regulations that set down the rules under which securities may be issued or traded in that province.

Public Float

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.

Seed Stock

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