Glossary of Terms

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Accredited Investor
An accredited investor is a person or a business entity who has access to substantially the same information concerning the issuer that is required in a prospectus.
Accrued Interest
Interest that is earned on a security but not yet paid to the investor.
The gradual purchase of a single security over a long period of time as opposed to a single purchase all at once. This is done to avoid driving up the price of the security
An affiliated body corporate or affiliated person within the meaning of Section 4 (2) of the Securities Act, 2012
Alternative Trading System (ATS)
- is not a quotation and trade reporting system or a securities exchange

  • does not—

    • require an issuer to enter into an agreement to have its securities traded on the securities market;

    • provide, directly or through one or more subscribers, a guarantee of a two-sided market for a security on a continuous or reasonably continuous basis;

    • set requirements governing the conduct of subscribers, other than conduct in

Annual Report
A comprehensive report that a company must provide to its shareholders every year. It provides information about the company's financial condition and operations over the past year. (All reporting issuers are required to file an Annual Report with the Commission within four months of the end of their financial year).
A financial product sold by an insurance company that provides a guaranteed fixed stream of payments to the holder for a specified period of time. Annuity plans provide a way for individuals to receive regular income after retirement.
Approved Foreign Issuer
that is at the relevant date the equivalent of a reporting issuer under the securities laws of a designated foreign jurisdiction;

  • that has been for the three years immediately preceding the relevant date the equivalent of a reporting issuer under the securities laws of a designated foreign jurisdiction;

  • that is subject to foreign disclosure requirements; and

  • that has a class of securities listed for trading on a recognized securities exchange in a designated foreign jurisdiction.

Approved Rating
An investment grade rating or higher from a designated rating organization.
Ask Price
This is the price that a seller is willing to accept for a security. Also known as the Offer Price.
A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
Asset Allocation
The process whereby an investor spreads his/her investments across different asset classes such as stocks, bonds and cash. This is an investment strategy that aims to reduce the risk and maximise the returns from the investor's investments.
Asset Class
A category of assets that share similar characteristics. The three main asset classes are stocks, bonds and cash.
Asset-backed security
Any security that is primarily serviced by the cash flows of a distinct pool of receivables or other financial assets, either fixed or revolving, that by their terms, convert into cash within a finite time period, together with any rights or other assets designed to assure the servicing or timely distribution of proceeds to security holders
When used to indicate a relationship with any person, means—

  • an entity of which that person beneficially owns or controls, directly or indirectly, either shares or securities currently convertible into shares, carrying more than twenty per cent of the voting rights;

  • a partner of that person acting on behalf of the partnership of which they are partners;

  • a trust or estate, in which that person has a substantial beneficial interest or in respect of which he serves as a trustee, legal representative or in a similar capacity;

  • a spouse or child of that person; or

  • a relative of that person if that relative has the same residence as that person

Bear market
A prolonged period of falling prices usually brought on by the anticipation of a decline in economic activity. May also be characterized as a market where prices have fallen 20% or more from their most recent high. A bear market in securities is triggered when investors sell off securities, generally because they anticipate worsening economic conditions and falling corporate profits. As prices fall, widespread pessimism among investors causes the negative sentiment to be self-sustaining.
Beneficial owner
In relation to a security, means a person who enjoys the benefits of ownership of the security although that person may not be the registered owner of the security.
Beneficial Ownership
In relation to a security, means entitlement to the benefits of ownership of the security and includes direct ownership, ownership through a trustee, legal representative, agent or other intermediary, and a person shall be deemed to have beneficial ownership of a security, including an unissued security, if the person is the beneficial owner of a security convertible into the underlying security, or an option or right to purchase the underlying security or securities convertible into the underlying security –

  • under all circumstances; or

  • by reason of the occurrence of an event that has occurred and is continuing.

Bid Price
This is the price that a buyer is willing to pay for a security.
Blocked account
An account of a participant over which a person other than the participant exercises control pursuant to procedures established under Section 123 of the Securities Act, 2012. For example, a brokerage may lend money to account holders through a "margin account" which then allows the account holder to buy securities. A margin account can then become "blocked" if the market value of the securities purchased falls below the amount owed on the stocks. A blocked account is sometimes referred to as a "restricted account".

  • According to the Securities Act, 2012, a clearing agency must not transfer, deal with or deliver securities in a blocked account without written instructions from the person who controls the account.

Board of Directors
A group of individuals that are elected by shareholders to oversee the management of a company.
A debt investment in which an investor loans money to an entity (corporate or governmental). The funds are borrowed for a defined period of time at an agreed interest rate.

Bonds, also known as debt securities, are issued by companies/corporations, and governments to finance a variety of projects and activities. The issuer promises:

  • paid interest, usually, but not always at a fixed rate, over the loan term, and

  • to repay the loan principal at maturity, on time and in full.

An owner of a bond. Bondholders may be individuals or institutions such as corporations, banks, insurance companies and mutual funds. A bondholder is entitled to regular interest payments as due and return of principal when the bond matures.
A person engaging in, or holding himself out as engaging in, the business of—

  • effecting transactions in securities for the account of others;

  • buying or selling securities for his own account and who holds himself out at all normal times, as willing to buy and sell securities at prices specified by him; or

  • such other activities as may be prescribed;

Bull Market
In contrast to a bear market, a bull market is characterized by optimism, investor confidence, and high expectations for a strong future. It is typically reserved for extended periods in which the prices of financial securities (stocks, shares, etc.) or commodities (tin, wheat, etc.) tend to rise because of persistent buying and only limited selling. Bull markets tend to last for months or even years.
Business Combination
An amalgamation, merger, arrangement, or similar transaction.
Business day
Any day on which institutions licensed under the Financial Institutions Act are open for the conduct of business in Trinidad and Tobago.
Regulations, ordinances, rules or laws adopted by associations, corporations, organisations or entities for the purpose of internal governance. By-laws define the rights and obligations of officers, persons and groups within an entity and provides rules for routine matters such as the convening of meetings etc.
A call is a right to buy a specified number of shares at a specified price by a fixed date.
Capital Gain
An increase in a capital asset's value that is realized when the asset sells for more than the purchase price.
Capital Market
A market in which securities are traded and includes the stock and bond markets. Companies and governments use capital markets to raise funds for their operations. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities.


  • Central Bank of Trinidad and Tobago (CBTT) - The Central Bank of Trinidad and Tobago's purpose is the promotion of such monetary, credit and exchange policies as would foster monetary and financial stability and public confidence and be favourable to the economy of Trinidad and Tobago.

Collective Investment Scheme (CIS)
A type of investment scheme that involves collecting money from different investors and then combining all the money collected to fund the investment. Their money is invested on a pooled basis by an investment manager in return for a fee. A collective investment scheme may also be called a mutual fund. A collective investment scheme provides almost absolute control of the investment to the company pooling and investing the money.
Common Share / Common Stock
A market in which securities are traded and includes the stock and bond markets. Companies and governments use capital markets to raise funds for their operations. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities.


  • Central Bank of Trinidad and Tobago (CBTT) - The Central Bank of Trinidad and Tobago's purpose is the promotion of such monetary, credit and exchange policies as would foster monetary and financial stability and public confidence and be favourable to the economy of Trinidad and Tobago.

Compound Interest
Interest calculated on the initial principal and also on the accumulated interest of previous periods of an investment.

  • It is when the interest you earn on an investment is added to form the new base on which future interest accumulates.

Compounding is the process by which an investment's interest earnings are re-invested and added to the principal. The interest in the next period is determined based on the principal as well as on the previously re-invested interest. Therefore, the interest on the investment also earns interest.
An act or instance of breaking a law or regulation or of nonfulfillment of an obligation or promise.
Coupon Payment
A coupon payment on a bond is the annual interest payment that the bondholder receives from the bond's issue date until it matures.

  • Annual interest paid on a bond, usually in semi-annual tranches. Coupon payments are expressed as a percentage of the face value (par) of a bond.

Coupon Rate
The interest rate on a bond which is calculated by dividing the bond's coupon payment by its face value.

  • The coupon rate is the interest rate that the issuer of a bond or other debt security promises to pay during the term of a loan.

Debt security
Any debt issued by a government or corporation that may be traded. Examples of debt securities include bonds, certificates of deposit, commercial paper, and debentures. The original buyer of the debt security effectively lends the issuer money in exchange for the security, which gives the holder the right to receive interest payments and, at maturity, the principal.
Deposit Insurance Corporation (DIC)
The DIC's main function is to manage a fund which provides insurance protection to depositors against the potential loss of their deposits should a member financial institution fail. The deposit insurance coverage limit is a maximum of TTD$125,000 per depositor in each capacity and right in each member institution licensed under the Financial Institutions Act 2008.
Depositary Receipts
A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts facilitate trading of foreign securities.
The voluntary or required release of information relevant to a security, company, fund, or anything else. In order to be listed on an exchange, a company must provide disclosure on itself by registering with the SEC and abiding by regulations that govern what information about itself that the company releases. Disclosure exists to prevent price manipulation and anything else that would disrupt the efficiency of trade.
A company's or a mutual fund's payment of stock, cash and other pay-outs to its shareholders.
A risk management strategy that mixes a wide variety of investments within a portfolio. Diversification strives to smooth out unsystematic risk events in a portfolio, so the positive performance of some investments neutralizes the negative performance of others. The benefits of diversification hold only if the securities in the portfolio are not perfectly correlated—that is, they respond differently, often in opposing ways, to market influences.

  • Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Dollar cost averaging
A strategy that allows an investor to buy the same dollar amount of an investment on regular intervals. The purchases occur regardless of the asset's price.

  • Dollar cost averaging means adding a fixed amount of money on a regular schedule to an investment account, such as a mutual fund, retirement account, or a dividend reinvestment plan.

Profits made by a company which is then shared with the shareholders of that company.
Earnings per share
The division of profits over shares in a company.
Electronic funds transfer (EFT)
Financial transactions which take place via computer networks.
The process of communicating online by converting data into a specific code so that only authorized individuals can decode it.
Long term funds that are usually owned by non-profit organizations.
Enterprise risk management
A strategic plan by an organization to manage risks.
Entry price
The price an investor pays to obtain an investment.
Ownership interest in a corporation in the form of common stock or preferred stock. Equity gives you ownership in a company. If you own stocks or shares, you have equity in, or own a portion (however small) of the company. Alternatively, total assets minus total liabilities are called shareholder's equity or net worth.
The net worth of a person’s assets in terms of property, possessions etc.  usually at death
Exchange rate
The rate at which one type of currency can be traded for another
Exchange-traded fund (ETF)
A group of securities (Commodities, stocks, bonds etc.) traded on a stock exchange that usually tracks a stock index.
The money that is paid toward something or will be paid.
Face Value
For a bond, the face value is the dollar amount to be repaid to the bondholder when the bond matures.
Family of Funds
A group of various funds managed by a company.
Finance company
A company that focuses on loaning money.
Financial institutions
A company licensed under the Financial Institutions Act, 2008.
Financial planner
An individual who assists in managing a person’s finances with the aim of achieving their financial goals.
Financial statements
Statements that reflect a company’s financial performance over a specific period of time
Any 12-month period that a company uses for its accounting records. The year does not have to start on January 1.
Fixed deposit
An account that you deposit money into but you can only withdraw after a specific period of time.
Fixed income security
A type security that provides fixed interest payments.
Fixed-rate bond
A bond with an interest rate that remains constant or fixed for the life of the bond
Floating-rate bond
A bond with an interest rate that moves in tandem with some benchmark interest rate or reference rate. The interest rate is typically adjusted every six months.
A sum of money collected from investors that is allocated for a specific purpose.
An agreement to buy or sell an asset or commodity at a set price at a specified time in future.
Government bond
A bond issued by government - federal, provincial or municipal.
Gross Domestic Product (GDP)
The market value of all final goods and services produced within a country over a specified period, typically a year. Gross Domestic Product is one of the primary indicators used to gauge the health of a country's economy.
Gross income
The income an individual receives before taxes are deducted.
Growth fund
A fund that holds stock which is expected to grow on a long-term basis.
Hedge fund
An alternative investment which sources capital from accredited investors to invest in funds using different complex strategies and risk management techniques.
The shares or investments held in a portfolio.
A security is said to be illiquid if it cannot be converted into cash quickly or near prevailing market prices. Illiquid securities cannot be sold quickly without a substantial fall in price due to the absence of a ready market for the security. Illiquid securities therefore carry higher risks than liquid securities.
A rise in the general level of prices of goods and services in an economy over a period of time.
Initial Public Offering (IPO)
Initial Public Offering (IPO) is also referred to as an "offering" or "flotation." It relates to the first sale of shares in a company. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
Insider trading
The trading of a corporation’s shares or other securities on the basis of non-public and price sensitive information
Institutional Investor
An organisation which pools large sums of money and invests those sums in securities, real property and other investment assets. Types of institutional investors include banks, investment companies, mutual funds, insurance companies and pension funds.
The price paid for borrowing money. Alternatively, interest can be viewed as the compensation to lenders for the use of their funds. It is expressed as a percentage of the amount owed to the lender. Interest rates are typically calculated on an annual basis.
International Organization of Securities Commissions (IOSCO)
The International Organisation of Securities Commissions (IOSCO), is the recognized international standard setter for securities markets. This Organization's membership regulates more than 90% of the world's securities markets and is the world's most important international cooperative forum for securities regulatory agencies.
A security that is purchased with the hope that it will generate income or appreciate in the future. This return may take the form of interest or capital gains.
Investment Advice
Advice with respect to an investment in, or the purchase, sale or holding of, a security.
Investment Adviser
A person engaging in, or holding himself out as engaging in, the business of providing investment advice, and includes a person that provides investment advice to a manager of a collective investment scheme.
Investment Goal
This describes an objective or target which arises from some specific future financial need. Some common investment goals are saving for retirement, providing for your children's education or saving for a major purchase such as a home. Determining your investment goals is the first step in the investment planning process. The second step involves determining how much you need to set aside to invest as well as the appropriate mix of investments that will enable you to achieve your financial goals. These in turn will depend on a number of factors such as your investment time horizon, your income and expenses as well as your risk tolerance.
Investment Policy Statement (IPS)
A document between an investor and portfolio manager that clearly lays out the terms and objectives with regard to the management of the investor’s money.
A person or organization that invests money in order to make a profit.
Investor Education Program
A programme conducted by regulators such as the TTSEC to provide investor education information to the general public.
A person that has securities outstanding or issues, or proposes to issue or distribute a security.
Joint account
An account owned by two individuals.
Junk bond
A bond that has high risk and high yields but is rated below investment grades. It is usually offered by a company that wants to obtain capital in a short period of time.
A technique used where multiple investments are purchased with different maturity dates
Someone who lends money.
Letter of Intent
A document outlining the agreement of two or more parties with the intention of carrying out stated agreements.
An investment strategy where money is borrowed to invest in hope of increasing the return on the investment.
Amounts owed from past transactions that a company is obliged to pay.
Limited offering
The offering of new securities sold to a limited number of investors.
The distribution of a business’s assets as it comes to an end. This is usually done when a business can no longer meet its financial obligations.
The liquidity of an asset is measured by the ease with which it can be converted into cash. Your current account, for example, is more liquid than your house. If you needed to sell your house quickly to pay bills you would have to drop the price substantially to get a sale.
Listed company
A company whose shares are listed on a stock exchange and allowed to trade on that stock exchange
The lending of money by individuals or organizations with the intent of getting it back at a later date
A situation where an investor cannot and/or will not change their position due to regulations, taxes or penalties incurred with doing so.
Long position
The purchase of securities with the expectation that they will rise in value.
A single fixed payment of money
The branch of economics that studies the economy as a whole. It focuses on aggregate changes in the economy such as gross domestic product ("GDP"), inflation and unemployment.
Management Discussion and Analysis ("MD&A")
The MD&A forms part of the Annual Report. It is a discussion and analysis of the comparative financial statements by senior officers of a registrant.
Management Fee
The amount paid by a mutual fund to the fund's investment adviser for its investment portfolio management services.
Securities trading: Difference between the amount of loan advanced by a stockbroker to a speculator and the current value of the securities deposited by him or her with the stockbroker as collateral.
Market Actor
a person exempted under the Securities Act, 2012 from the requirement to be registered;

  • senior officer, or promoter of a reporting issuer;

  • custodian of assets, shares or units of a collective investment scheme;

  • a self-regulatory organisation;

  • a designated rating organisation;

  • a transfer agent for securities of a reporting issuer;

  • a registrar for securities of a reporting issuer;

  • the partner of a market actor;

  • a contingency fund required under Part III of the Securities Act, 2012;

  • a settlement assurance fund required under Part III of the Securities Act, 2012;

  • a securities market;

  • a clearing agency; or

any other person or member of a class of persons prescribed to be a market actor
Market bid-ask spread
The difference between the best bid price and the best offer price.
Market Capitalisation
The market value of a company. It is calculated by multiplying the market price per share by the total number of outstanding shares
Market Intermediary
Entities who facilitate a market transaction between two other parties.
Market Manipulation
The deliberate attempt to distort price or artificially inflate trading volumes with respect to a security, commodity or currency with the intent to mislead market participants.
Market Risk
The possibility of losses in an investment due to changes in the market conditions. Market risk is also referred to as "systematic risk". This risk cannot be eliminated through diversification.
Market Value
The current price at which the security is trading on the market.
Material Change
when used in relation to an issuer other than a collective investment scheme, a material change is a change in the business, operations, assets or ownership of an issuer, the disclosure of which would be considered important to a reasonable investor in making an investment decision and includes a decision to implement such a change made by the directors of the issuer or other persons acting in a similar capacity

  • when used in relation to an issuer that is a collective investment scheme, a material change in the business, operations or affairs of the issuer, the disclosure which would be considered important by a reasonable investor in determining whether to purchase, sell or transfer or continue to hold securities of the issuer, and includes a decision to implement such a change made by the directors of the issuer or the directors of the manager of the issuer or other persons acting in a similar capacity.

Material Fact
When used in relation to the affairs of an issuer or its securities, it is a fact or a series of facts, the disclosure of which would be considered important to a reasonable investor in making an investment decision.
Material non-public information
In relation to the securities of a reporting issuer, any material fact or material change that has not been published.
In terms of a bond or other debt instrument, it is the date at which the principal amount of the debt becomes due and payable.
The combination of two or more companies to become one new legal entity.
The branch of economics that studies how individuals and companies make decisions to allocate scarce resources. It focuses on topics such as demand and supply and factors of production.
The average of the bid and offer price of a security.  
Mining is the act of validating blockchain transactions. The necessity of validation warrants an incentive for the miners, usually in the form of coins. In this cryptocurrency boom, mining can be a lucrative business when done properly. By choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income.
(a) an untrue statement of a material fact or material fact or material change

  • an omission to state a material fact or material change that is required to be stated or is necessary to prevent a statement that is made from being false or misleading in the circumstances in which it is made.

Monetary Policy
A macroeconomic policy implemented by the central bank to manage the size and growth rate of the money supply in an economy.
Money Laundering
The process used to disguise the illicit source of the proceeds such as money or assets, derived from criminal activity by making such proceeds appear to be from a legitimate source.
Money Market
The market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term. Money market securities include certificates of deposit (CDs), bankers’ acceptances, treasury bills and commercial paper.
Mortgage-backed securities
A sub-category of Asset Backed Securities. Mortgage Backed Securities are based on or represent an interest in an underlying pool of mortgages. Investors receive interest and principal payments derived from the underlying mortgages.
Municipal Bonds
A debt security issued by local or state government. It is used to raise capital to finance public projects such as schools, roads, airports, seaports and other aspects of the local government district.
Mutual Fund
An investment vehicle which pools money from investors and purchases various types of securities such as shares, bonds or money market securities based on stated investment objectives. See: Collective Investment Schemes ("CIS")
Near Money
Liquid assets that can be easily converted into cash as needed.
Net Asset Value (NAV)
For a mutual fund, the Net Asset Value (NAV) is the price per share or unit in the fund. It is calculated as the total value of the securities held in a mutual fund less any liabilities, divided by the number of shares outstanding in the fund. When you buy or sell shares in a mutual fund you do so at the current NAV. The NAV rises and falls as the value of the underlying investments in the fund changes. The NAV is computed daily at the close of each business day.
Net income
The total revenue in an accounting period after deducting all expenses (including depreciation, interest and taxes) during the same period.
The price and volume fluctuations that can make it difficult to interpret the market's direction.
A provision of a security that prohibits the issuer from redeeming the security before maturity.
Non-systematic risk
Firm-specific risk resulting from factors that are not associated with the sector or broader market. This risk can be reduced through diversification.
A responsibility for repaying a debt.
Offer Price
The price at which an owner is willing to sell a security. Also see Ask Price
Offer to acquire
An offer to acquire includes

  • an offer to purchase or a solicitation of an offer to sell securities;

  • an acceptance of an offer to sell securities, whether or not such offer to sell has been solicited. or any combination thereof, and the person accepting an offer to sell shall be deemed to be making an offer to acquire from the person that made the offer to sell.

Open Market Operations ("OMO")
When the central bank buys and sells government bonds in the open market in an effort to regulate the money supply.
Open-end Funds
Mutual Funds or Collective Investment Schemes in which the number of units in the funds varies on a daily basis in relation to the number of investors willing to buy and sell holdings in the mutual fund.
An option is a contract that gives the purchaser the right, but not the obligation to buy or sell a security at a specific price on or before a specific date.
Ordinary Stocks
Ordinary or Common Stocks are stocks that represent ownership in a company and give the stockholder a vote in the selection of management and a proportionate but unspecified claim on profits. These profits may be distributed to stockholders as dividends declared by the company's directors from time to time and paid out of earnings.
Out of the Money
In the case of a call, this describes when the strike price of the option exceeds the share price of the underlying equity.
Over-the-Counter market
The market in which securities are traded via a network of dealers rather than through a stock exchange.
Par Value
The amount originally paid for a bond and the amount repaid at maturity. Also see Face Value.
Passively Managed Fund
An index fund - Investment fund designed to match the returns on a stock market index.
Perpetual Bond
Bonds with no stated maturity date.
Ponzi Schemes
An investment scam which promises exceptionally high rates of returns in a short period of time. A Ponzi schemer will only ask you to invest in something. You won't be asked to take any more action other than handing over your money. He or she will claim to take care of the rest and give you your returns later. The scheme uses new investors' monies to repay previous investors. The scheme inevitably collapses when the promoter runs out of new investors to repay the previous investors.
Combining of assets of different entities, i.e., two or more counties, for efficient investment purposes while maintaining separate accounting trails.
A collection of investments held by an individual or an institution. A portfolio includes financial instruments such as bonds, stocks, cash or mutual funds. The portfolio may be held directly by an investor or it can be managed by a financial professional.
Preference Shares
A class of shares that usually does not give the investor voting rights. Preference shares take priority over ordinary shares in the payment of dividends and in the event of a liquidation (selling off of the company's assets).
The amount by which the price of a bond or stock exceeds its original value (par value).
Present Value
The current value of a future cash flows discounted at an appropriate interest rate or rates.
The amount that is borrowed or lent; the amount of funds originally invested in a security; the Face Value of a bond.
Promissory note
A written promise or pledge by one party to make fixed periodic payments to another party in full by a specific date.
A formal document that provides details about an investment offering for sale to the public. This information would allow an investor to make an informed investment decision.
A shareholder vote on matters that require shareholder's approval.
Public Company
A company, any of who issued shares are or were part of a distribution, or an offer, to the public.
Put Option
An option that gives the holder the right, but not the obligation to sell an underlying asset to another party at a fixed price over a specific period of time.
Pyramid Scheme
An investment scam which promises exceptionally high rates of returns in a short period of time. New investors are usually asked to bring in new investors into the fold. The scheme uses new investors' monies to repay previous investors. These schemes are sometimes erroneously referred to as pyramid schemes because they start off with a promoter and add successively broader levels, giving the scheme a triangular or pyramid shape. However, there is a subtle difference between the two. The scheme inevitably collapses when the promoter runs out of new investors to repay the previous investors.
Qualified Opinion
An auditor's opinion that highlights limitations in the audit of a company's financial statement.
Quick Assets
Assets which can be easily converted into cash. Current assets minus Inventory.
The minimum number of people (shareholders or board members) required to be present or must provide a proxy to vote at a meeting in order to make a valid decision.
A sustained increase in the price of a commodity, security, or the entire market, after a period of decline.
Rate of Return
The rate of return on an investment is the gain or loss on an investment expressed as a percentage of the total amount invested. The return on an investment consists of any income received from the security (interest or dividend income), plus any increases in the security's value (capital gains)
Ratings (Bonds)
A measure of probability of a bond's default (failure to make timely payment of principal or interest on the bond).
Real Estate Investment Trust ("REIT")
REIT is a company that owns income-producing real estate or related assets. The REIT issues shares which are traded on organized exchanges as they were stocks. REIT allows individuals to invest in the real estate market.
The act of realigning the percentages or weightings of different types of securities in a portfolio to return to the appropriate asset allocation mix, especially in relation to the changes in one's investment goals.
Sale of mutual fund shares by investors.
Registered Representative
An individual required to be registered under Section 51(2) of the Securities Act, 2012. The three categories of registration for Registered Representatives are Advising, Brokering and Underwriting.
A person registered or required to be registered under Part IV of the Securities Act, 2012.
A regulator is a state agency tasked with being the main supervising entity of a financial institution.
Reporting Issuer
An issuer: (a) that was immediately before the coming into force of this Act; a reporting under the former Act; (b) that is registered or is required to be registered under the Securities Act, 2012; (b) any of whose securities are listed on the a registered securities market; or (c) whose existence continues or who comes into existence following a takeover, business combination or other reorganisation involving an exchange of securities in which one of the parties was a reporting issuer at the time of the transaction.
Repurchase Agreement/ Repo
The sale of a security with a commitment by the seller to buy the same security back from the purchaser at a specified price at a designated date in the future. See: Policy Framework for Repurchase Agreements pdf (175KB)
Retail Investor
An individual who purchases small amounts of securities for him/herself as opposed to an institutional investor. Also called individual investor or small investor.
Rights Issue
This occurs when a public company issues new shares to its existing shareholders to raise cash.
In finance, risk refers to the degree of uncertainty about the return an investor would earn on an investment. It relates to the possibility of an investor incurring a loss on his or her investments. A fundamental tenet in investing is the relationship between risk and return. In general, investments that have higher levels of risk offer higher rates of return to compensate investors for taking on the additional risk.
Risk Aversion
Risk aversion refers to the reluctance of an investor to take on risk. Risk-averse investors are very conservative and prefer to invest in relatively 'safe' investment instruments such as government bonds and treasury bills.
Risk Tolerance
An investor's ability and willingness to take on risk. It also relates to the capacity of an investor to absorb declines in the value of his/her investments.
Robo Advisor
Digital platform that provide automated, system driven financial planning services with little to no human supervision.
Securities are investment instruments which create a right in the holder to participate in the profits or assets distribution in a profit-making enterprise. These instruments have a financial value and can be used to create wealth.
Securitisation is the process of taking various financial assets and creating new financial products through merging, repackaging or transforming them into a security.
Security Market Index
A group of securities representing a given security market, market segment or asset class.
Short Positions
A short position occurs when an investor sells, or borrows then sells an asset or security with the intention of repurchasing it at a lower price in the future.
Sou Sou
A Sou-Sou is a traditional alternative means of saving money. A Sou-Sou is usually conducted among a small group of trusted individuals. It is not a profit-making venture and does NOT require you to bring in additional persons.
Stock split
A stock split is an action taken by a company where the existing shares are increased and although the number of shares outstanding increases, the total dollar value of the shares remains the same as before, because the split does not add or increase value.
A swap is a derivative contract through which two parties exchange the cash flows or liabilities from different financial instruments over months or years for a mutual benefit and to manage risk.
Systemic failure
Systematic failure is the failure of an entire financial system, including loss of access to credit and collapse of capital markets.
Systemic risk
Systemic or market risk is a risk associated with economic conditions that affect risky investments. These conditions can include macroeconomic or political factors. Systemic risk is different from systematic risk which deals with an entire financial system.
Underwritten offerings
A public offering where a lead investment bank guarantees the sale of securities at a price negotiated with the issuers.
Venture Capital
Venture capital is a private equity investment strategy that involves the financing that investors provide to start-up companies and small businesses that are believed to have the potential of long-term growth.
Voting rights
Voting rights are rights of shareholders to vote on matters ranging from the members of a board of directors, corporate policy, and substantial changes in the corporation's operations.
Yield curve
A yield curve is a line that plots the interest rates (presented in a graphical form) at a set point in time, of bonds having equal credit quality but differing maturity dates.
Yield to maturity
The discount rate that equates the present value of a bond’s promised cash flows to its market price.

  • Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but it is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate. Yield to maturity is also referred to as "book yield" or "redemption yield."

Zero-coupon bonds
A zero-coupon bond is a debt security that doesn't offer periodic interest payments during the bond’s life but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full-face value.

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