Acceptance Paper: A colloquial term for short-term promissory notes issued by sales finance companies to fund loans to consumers for cars, appliances, etc.

Accumulated Dividends: Dividends that are left on deposit with the insurance company, or are used to purchase more paid-up additions. Paid-up additions are units of life insurance requiring a single premium. Once purchased, these paid-up additions require no further premium and they may also attract dividend, but at allowed rate. When the insured dies, these paid-up additions are extra units of life insurance that are paid to the beneficiary.

ATF: Annual Information Form (applies to mutual funds).

Alberta Electric Energy Marketing Agency (EEMA): EEMA's function is to reduce the disparity in electric power generation and transmission costs throughout the province. EEMA achieves this through compulsory purchases of electricity from the province's three generating companies - which it then sells back to them at an average price.

Alberta Energy and Utilities Board: Provincial body whose responsibilities include regulating the operations of Alberta's gas distribution and electric utilities.

Alberta Small Power Research and Development Act: The Act was introduced in 1988 to encourage research and development of alternative electricity generation options in Alberta.

Alberta's Energy Act: Alberta's electric utilities are regulated by the Alberta Energy and Utilities Board pursuant to the Alberta Energy Act.

Amortization: The spreading out of an expense or debt over a period of time. Also, an accounting procedure that gradually reduces the cost value of an asset through periodic changes to income. Depreciation is the term used for fixed assets, and depletion is used to describe wasting assets such as natural resources.

Asset: Anything owned by a person or company. An asset may be intangible (patents, computer programs, etc.) or tangible (real estate, cash, etc.).

Asset Allocation: The dynamic distribution of investment assets into various categories such as bonds, common stocks, real estate, etc. in response to assumptions regarding future economic and market conditions.

Back-End Redemption Charge: Some mutual funds have no front-end charges or load when acquired, but do levy a back or rear-end charge (load) when the fund units are redeemed. This charge declines each year the units are held until it reaches zero.

Balance Sheet: A financial statement showing the financial position of a person or company at a particular date; a record of assets and liabilities.

Balanced Budget Plan: A document that outlines when the province's revenues equal its expenditures.

Balloon: In some serial bond issues an extra-large amount - the "balloon" - may mature in the final year of the series.

Bank Rate: The minimum rate at which the Bank of Canada makes short-term advances to the chartered banks, other members of the Canadian Payments Association and investment dealers who are money market "jobbers". Since 1980, the bank rate has been set at 1/4 of 1 percent (25 basis points) above the weekly average tender rate of 91-day Government of Canada treasury bills.

Bankers' Acceptance: A type of short-term negotiable commercial paper issued by a non-financial corporation but guaranteed as to principal and interest by its bank. The guarantee results in a higher issue price and consequent lower yield.

Basis Point: A phrase used to describe differences in bond yields, with one basis point representing one hundredth of a percentage point.

Bearer Security: A security (stock or bond) that does not have the owner's name recorded in the books of the issuing company nor on the security itself, and which is payable to the holder, i.e. the possessor.

Beneficial Owner: The real owner of shares (or other assets). An investor may own shares that are registered in the name of a broker, trustee or bank to facilitate transfer or to preserve anonymity, but the investor would be the beneficial owner.

Big Three: Refers to General Motors, Ford and Chrysler.

Bond: A debt security issued by governments or corporations. It is a promise by the issuer to pay the face value of the bond at maturity, as well as interest payments at regular intervals.

Bottom-Up Approach to Investing: A method of analysis that focuses on individual companies before considering their industry or the economy in general. This approach assumes that particular companies can perform well even though their competitors, or the overall economy, may be doing poorly.

Broadband Initiatives: Broadband, interactive networks based around ATM switches, video services and fibre to the home. This is the full "bells-and-whistles" telecommunications network and consequently, the most costly.

Business Cycle: The long-term expansion/recession cycle characteristic of business conditions, both nationally and globally.

Callable: Describes a bond or preferred share that gives the issuing company the right to redeem (buy back) the security prior to the maturity date at a previously specified price.

Call Loan: A loan that may be terminated or "called" at any time by the lender or the borrower. Used to finance purchases of securities.

Canada-Alberta Infrastructure Program: A federal government initiative introduced to help Alberta municipalities with their capital infrastructure needs.

Canada-Ontario Infrastructure Program: A federal government initiative introduced to help Ontario municipalities with their capital infrastructure needs.

Canada Savings Bond (CSB): A bond issued each year by the Government of Canada. Available in various denominations, the bonds can be cashed at any time and are fully guaranteed by the federal government.

Canada Social Transfer Act (The): The new block funding model that will control how funds are transferred from the federal government to the provinces.

Canadian Investor Protection Fund (CIPF): A fund set up by the stock exchanges and Investment Dealers Association to protect investors from losses resulting from the bankruptcy of a member firm. Formerly the National Contingency Fund.

Cash Surrender Value: The predetermined actuarial value of an insurance policy according to the number of years the policy has been in force. The longer in force, the greater the cash surrender value.

CIDC: Canada Deposit Insurance Corporation.

Central Bank: A body established by a national government to regulate currency and monetary policy. In Canada, it is the Bank of Canada; in United States, the Federal Reserve Board.

Certificate of Deposit (CD): A fixed-income debt security issued by most chartered banks, usually in minimum denominations of $1,000 with maturity terms of one to six years.

CF%TD: Cash flow as a percentage of total debt.

CLHIA: Canadian Life and Health Insurance Association.

Closed-End Investment Company: Unlike an open-ended investment company, which creates new shares to meet investor demand, a closed-end company has a fixed number of shares, which are often listed on an exchange.

CMHC: Canada Mortgage and Housing Corporation.

Collateral: Securities or other property pledged by a borrower as a guarantee for repayment of a loan.

Collateral Trust Bond: A bond secured by stocks or bonds of companies controlled by the issuing company, or other securities, which are deposited with a trustee.

Commercial Paper (CP): Short-term negotiable debt securities issued by non-financial corporations with terms of a few days to a year.

Commission: The broker's or agent's fee for buying or selling securities for a client.

Common Share: A class of stock that represents ownership or equity in a company. Common shares usually carry a voting privilege and entitle the holder to a share in the company's profits.

Competition Bureau (The): A federal agency that regulates business mergers and ensures the existence of fair competition.

Compound Interest: Interest paid on interest. This occurs when interest paid on an investment is then added to the amount of the original investment. As a result, interest payments in the future are based on the original investment plus an ever-increasing accumulation of interest added to it.

Consolidated Revenue Fund: The primary account the government uses to conduct its business.

Consumer Price Index (CPI): A measure of the annual increase in the cost of certain consumer goods and services; often used as an indication of the rate of inflation.

Contribution Mechanism: A federal hearing on this telecommunications issue will review the method for calculating contribution based on the proposed split-rate-base regime, and allocating contribution charges to the utility segment.

Convertible: A bond, debenture or preferred share that may be exchanged by the owner, usually for the common stock of the same company, in accordance with terms of the conversion privilege. A company can force conversion by calling in such shares for redemption if the redemption price is below the market price.

Coupon: A portion of a bond certificate entitling the holder to an interest payment of a specified amount when clipped and presented at a bank on or after its due date.

CRTC - Canadian Radio-television and Telecommunications Commission: Federal body responsible for regulating Canadian telecommunication and communication companies.

CSA: Canadian Securities Administrators.

Cumulative Preferred: A preferred stock with a provision that if one or more of its dividends accumulate and are not paid, the unpaid dividends accumulate and must be paid before any dividends may be paid on the company's common shares.

Current Return: The annual income from an investment expressed as a percentage of the investment's current value. On stock, calculated by dividing yearly dividend by market price; on bonds, by dividing yearly interest by current price.