Glossary attachment

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Back-End Load

Means Sales Load deducted from the Net Asset Value in determining the Redemption Price.

Balance Sheet

A financial statement showing a company's or fund's assets, liabilities and shareholder's equity.

Balanced Fund

A mutual fund comprised of a mix of various assets, including money market investments, fixed income securities and equities. The percentage holding of the type of asset class will depend on (1) market conditions and/ or (2) the fund's investment objective.

Bank Rate

The rate at which the State Bank makes short-term loans to chartered banks and other financial institutions. It is also the benchmark for prime rates set by financial institutions.

Banker's Acceptances

A short-term debt instrument issued by a bank for a non-financial company backed by the bank's promise to repay if the borrowing corporation defaults.

Basic Point

One basis point equals one one-hundredth of a percentage point. Thus a 250 basis point increase is equal to a 2.5% increase.

Bear Market

A declining securities market, with prices decreasing in value over time. Opposite from a Bull Market.

Bearer Form

A security which does not have the owner's name registered on the books of the issuer. The name of the owner will not be found on the security. The coupons attached to the bond must be clipped and sent to the issuer in order to receive the coupon payment. Bonds in bearer form should be treated like cash.

Beneficial Owner

An individual who benefits from the assets owned in an account. This individual may be different from the registered owner, as in the case of a nominee.


An individual named as the recipient of a gift which can be made through a trust or who will receive an inheritance upon the death of another individual.


Represented by the symbol ß. A statistical tool used to measure the volatility (risk) of a stock. The volatility of a stock is measured relative to a stock market (represented by an index), which always has a beta of 1. A stock that is more volatile than an index has a beta greater than 1; while a stock which is less volatile than a market has a beta less than 1. For example should a stock market increase by 10%, the price of a stock with a beta of 2 should increase by 20%, indicating that it is twice as volatile as that particular market.

Bid price

The highest price a buyer is willing to pay for a security.

Blue Chip

A high grade investment. Usually an active well known common share with a record of continuous payment of dividends.

Board of Directors

A group of individuals elected by the shareholders of a company, who are empowered and given the responsibility to manage the affairs of the company in a diligent and prudent manner. The directors are usually elected at the annual general meeting of the company.


An IOU of the federal government, a provincial government or a corporation (if secured by specific assets). It is a fixed income security, issued with a maturity of one year or more to raise funds in the long-term. It is an evidence of debt, in which the issuer guarantees to pay the investor a specific amount of money, interest, for a period of time, and the eventual repayment of the principal on the maturity date.

Bond Fund

A mutual fund whose primary investment objective is to invest in high quality fixed-income investments in order to offer its investors regular income streams.

Book Value or Break-up Value

(1) The book value of a stock of a company is calculated from a company's balance sheet, by adding all the assets and deducting them from the total liabilities.

(2) The original cost of all the investments held within a mutual fund plan, less any withdrawals, plus any reinvested dividends and income.


Securities firm or duly registered individual employed by such a firm. A broker does not usually own the securities that are bought or sold, but rather acts as agent for the buyer or seller and charges a commission for its services.

Bull Market

An advancing securities market, with prices increasing in value over time. Opposite from Bear Market.

Business Cycle

A several year period in which the economy generally grows and then contracts (recession) and then resumes an up-trend.

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