liquidation. It usually does not have voting rights, unless a stated number of dividends have been omitted.
Premium
An option contract’s price.
Price-Earnings (P/E) Ratio
A common stock’s last closing market price per share divided by the latest reported 12-month earnings per share. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at.
Principal Trade
A trade when a Participating Organization is either buying from, or selling to its client.
Priority
If there are several orders competing for a stock at the same price, a priority determines when one of these orders will be filled before any other at this price. Priority is based on the time at which the order is received into the system.
Private Placement
The private offering of a security to a small group of buyers. Resale of the security is limited.
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.
Prospectus
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.
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.
Put Option
A put option is a contract that gives the holder the right to sell a specified number of shares at a stated price within a fixed time period. Put options are purchased by those who think a stock may decline in price.
Qq
Quoted Market Value (QMV)
See Market Capitalization.
Rr
Rally
A brisk rise in the general price level of the market or price of a stock.
Revenue
The total amount of funds generated by a business.
Rights
A temporary privilege that lets shareholders purchase additional shares directly from the issuer at a stated price. The price is usually less than the market price of the common shares on the day the rights are issued. The rights are only valid within a given time period.
Risk
The future chance or probability of loss.
Ss
Securities
Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.
Securities and Exchange Commission (SEC)
The federal regulatory body for interstate securities transactions in the United States.
Seed Stock
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