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A model used to estimate the price of an option.

Trades based on signals from computer programs. These are usually entered directly from the traders computer to the market’s computer system. Program trading accounts for an increasingly larger and larger portion of all trades throughout the day. Additionally, these large trades may be hedged by an offsetting position in index futures.

A mathematical model used to calculate the theoretical price of an option.

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.

A single purchase or sale of a stock involving 10,000 or more shares. 

Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on TSX trading systems.

This is an abbreviation of a stock’s price-to-earnings ratio. The price-to-earnings ratio is a stock’s share price divided by earnings per share for the company’s most recent four quarters. A projected P/E divides the share price by estimated earnings per share for the coming four quarters.

The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock quote.

A security’s nominal face value.

The price you are asked to pay when you buy a stock (see ‘Bid Price’).