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CSC Glossary New > N, O > Flashcards

N, O Flashcards

1
Q

Naked Writer

A

A seller of an option contract who does not
own an offsetting position in the underlying
security or a suitable alternative.

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2
Q

NASDAQ

A

An acronym for the National Association of
Securities Dealers Automated Quotation
System. NASDAQ is a computerized
system that provides brokers and dealers
with price quotations for securities traded
OTC

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3
Q

National Debt

A

The accumulation of total government
borrowing over time .It is the sum of past
defi cits minus the sum of past surpluses.

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4
Q

National Policies

A

The Canadian Securities Administrators
have developed a number of policies that
are applicable across Canada. These
coordinated efforts by the CSA are an
attempt to create a national securities
regulatory framework. Copies of policies
are available from each provincial regulator.

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5
Q

National Do Not Call List (DNCL)

A

The Canadian Radio-television and
Telecommunications Commission (CRTC)
has established Rules that telemarketers and
organizations that hire telemarketers must
follow. The DNCL Rules prohibit
telemarketers and clients of telemarketers
from calling telephone numbers that have
been registered on the DNCL for more
than 31 days

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6
Q

National Registration Database

NRD

A

A web-based system that permits mutual
fund salespersons and investment advisors
to fi le applications for registration
electronically

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7
Q

Natural Unemployment Rate

A 
Also called the full employment 
unemployment rate. At this level of 
unemployment, the economy is thought to 
be operating at close to its full potential or 
capacity
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8
Q

Negative Pledge Provision

A

A protective provision written into the trust
indenture of a company’s debenture issue
providing that no subsequent mortgage
bond issue may be secured by all or part of
the company’s assets, unless at the same
time the company’s debentures are similarly
secured

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9
Q

Negotiable

A

A certifi cate that is transferable by delivery
and which, in the case of a registered
certifi cate, has been duly endorsed and
guaranteed.

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10
Q

Negotiated Offer

A

A term describing a particular type of
fi nancing in which the investment dealer
negotiates with the corporation on the
issuance of securities. The details would
include the type of security to be issued, the
price, coupon or dividend rate, special
features and protective provisions.

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11
Q

Net Asset Value

A

For a mutual fund, net asset value
represents the market value of the fund’s
share and is calculated as total assets of a
corporation less its liabilities. Net asset
value is typically calculated at the close of
each trading day. Also referred to as the
book value of a company’s different classes
of securities.

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12
Q

Net Change

A

The change in the price of a security from
the closing price on one day to the closing
price on the following trading day. In the
case of a stock which is entitled to a
dividend one day, but is traded ex-dividend
the next, the dividend is not considered in
computing the change. The same applies to
stock splits. A stock selling at $100 the day
before a two-for-one split and trading the
next day at $50 would be considered
unchanged. The net change is ordinarily the
last fi gure in a stock price list. The mark
+1.10 means up $1.10 a share from the last
sale on the previous day the stock traded.

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13
Q

Net Profi t Margin

A

A profi tability ratio that indicates how
effi ciently the company is managed after
taking into account both expenses and
taxes.

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14
Q

New Account Application Form

NAAF

A

A form that is fi lled out by the client and
the IA at the opening of an account. It gives
relevant information to make suitable
investment recommendations. The NAAF
must be completed and approved before
any trades are put through on an account.

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15
Q

New Issue

A

An offering of stocks or bonds sold by a
company for the fi rst time. Proceeds may be
used to retire outstanding securities of the
company, to purchase fi xed assets or for
additional working capital. New debt issues
are also offered by government bodies.

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16
Q

New York Stock Exchange (NYSE)

A

Oldest and largest stock exchange in North
America with more than 1,600 companies
listed on the exchange.

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17
Q

NEX

A

A new and separate board of the TSX
Venture Exchange that provides a trading
forum for companies that have fallen below
the Venture Exchange’s listing standards.
Companies that have low levels of business
activity or who do not carry on active
business will trade on the NEX board,
while companies that are actively carrying
on business will remain with the main TSX
Venture Exchange stock list.

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18
Q

No Par Value (n.p.v.

A

Indicates a common stock has no stated

face value

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19
Q

Nominal GDP

A

Gross domestic product based on prices
prevailing in the same year not corrected for
infl ation. Also referred to as current dollar
or chained dollar GDP.

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20
Q

Nominal Rate

A

The quoted or stated rate on an investment
or a loan. This rate allows for comparisons
but does not take into account the effects of
infl ation.

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21
Q

Nominee

A

A person or fi rm (bank, investment dealer,
CDS) in whose name securities are
registered. The shareholder, however, retains
the true ownership of the securities.

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22
Q

Non-Client and Professional

Orders

A

A type of order for the account of partners,
directors, offi cers, major shareholders, IAs
and employees of member fi rms that must
be marked “PRO” , “N-C” or “Emp”, in
order to ensure that client orders are given
priority for the same securities.

23
Q

Non-Competitive Tender

A

A method of distribution used in particular
by the Bank of Canada for Government of
Canada marketable bonds. Primary
distributors are allowed to request bonds at
the average price of the accepted
competitive tenders. There is no guarantee
as to the amount, if any, received in
response to this request

24
Q

Non-Controlling Interest

A
  1. The equity of the shareholders who do
    not hold controlling interest in a controlled
    company; 2. In consolidated fi nancial
    statements (i) the item in the statement of
    fi nancial position of the parent company
    representing that portion of the assets of a
    consolidated subsidiary considered as
    accruing to the shares of the subsidiary not
    owned by the parent; and (ii) the item
    deducted in the statement of
    comprehensive income of the parent and
    representing that portion of the subsidiary’s
    earnings considered as accruing to the
    subsidiary’s shares not owned by the parent
25
Q

Non-Cumulative

A

A preferred dividend that does not accrue

or accumulate if unpaid.

26
Q

Odd Lot

A

A number of shares which is less than a
standard trading unit. Usually refers to a
securities trade for less than 100 shares,
sometimes called a broken lot. Trading in
less than 100 shares typically incurs a
higher per share commission.

27
Q

Of Record

A

On the company’s books or records. If, for
example, a company announces that it will
pay a dividend on January 15 to
shareholders of record, every shareholder
whose name appears on the company’s
books on that date will be sent a dividend
cheque from the company.

28
Q

Offer

A

The lowest price at which a person is
willing to sell; as opposed to bid which is
the highest price at which one is willing to
buy.

29
Q

Offering Memorandum

A

This document is prepared by the dealer
involved in a new issue outlining some of
the salient features of the new issue, but not
the price or other issue-specifi c details. It is
used as a pre-marketing tool in assessing the
market for the issue as well as for obtaining
expressions of interest.

30
Q

Offering Price

A

The price that an investor pays to purchase
shares in a mutual fund. The offering price
includes the charge or load that is levied
when the purchase is made.

31
Q

Offsetting Transaction

A

A futures or option transaction that is the
exact opposite of a previously established
long or short position

32
Q 
Offi ce of the Superintendent of 
Financial Institutions (OSFI)
A

The federal regulatory agency whose main
responsibilities regarding insurance
companies and segregated funds are to
ensure that the companies issuing the funds
are fi nancially solvent.

33
Q

Offi cers

A

Corporate employees responsible for the

day-to-day operation of the business.

34
Q

Old Age Security (OAS)

A

A government pension plan payable at age
65 to all Canadian citizens and legal
residents

35
Q 
Ombudsman for Banking Services 
and Investments (OBSI)
A

An independent organization that
investigates customer complaints against
fi nancial services providers

36
Q

Open Interest

A

The total number of outstanding option
contracts for a particular option series. An
opening transaction would increase open
interest, while a closing transaction would
decrease open interest. It is used as one
measure of an option class’s liquidity.

37
Q

Open Market Operations

A

Method through which the Bank of Canada
infl uences interest rates by trading securities
with participants in the money market

38
Q

Opening Transaction

A

An option transaction that is considered the
initial or primary transaction. An opening
transaction creates new rights for the buyer
of an option, or new obligations for a seller.
See also Closing Transaction

39
Q

Operating Band

A

The Bank of Canada’s 50-basis-point range
for the overnight lending rate. The top of
the band, the Bank Rate, is the rate
charged by the Bank on LVTS advances to
fi nancial institutions. The bottom of the
band is the rate paid by the Bank on any
LVTS balances held overnight by those
institutions. The middle of the operating
band is the target for the overnight rate.

40
Q

Operating Income

A

The income that a company records from

its main ongoing operations.

41
Q

Operating Performance Ratios

A

A type of ratio that illustrates how well
management is making use of company
resources.

42
Q

Option

A

A right to buy or sell specifi c securities or
properties at a specifi ed price within a
specifi ed time. See Put Options and Call
Options.

43
Q

Option Premium

A

The amount paid to enter into an option
contract, paid by the buyer to the seller or
writer of the contract.

44
Q

Option Writer

A

The seller of the option who may be
obligated to buy (put writer) or sell (call
writer) the underlying interest if assigned by
the option buyer.

45
Q

Oscillator

A

A technical analysis indicator used when a
stock’s chart is not showing a defi nite trend
in either direction. When the oscillator
reading reaches an extreme value in either
the upper or lower band, this suggest that
the current price move has gone too far.
This may indicate that the price move is
overextended and vulnerable.

46
Q

Out-of-the-Money

A

A call option is out-of-the-money if the
market price of the underlying security is
below its strike price. A put option is
out-of-the-money if the market price of the
underlying security is above the strike price.

47
Q

Output Gap

A

The difference between the actual level of
output and the potential level of output
when the economy is using all available
resources of capital and labour.

48
Q

Outstanding Shares

A

That part of issued shares which remains

outstanding in the hands of investors.

49
Q

Over-Allotment Option

A

An activity used to stabilize the aftermarket
price of a recently issued security. If the
price increases above the offer price, dealers
can cover their short position by exercising
an overallotment option (also referred to as
a green shoe option) by either increasing
demand in the case of covering a short
position or increasing supply in the case of
over-allotment option exercise.

50
Q

Overcontribution

A

An amount made in excess to the annual
limit made to an RRSP. An
overcontribution in excess of$2,000 is
penalized at a rate of 1% per month.

51
Q

Overlay Manager

A

The overlay manager works with advisors in
servicing clients. This is not a referral but a
partnership, in which the advisor retains the
client’s assets. The service incorporates the
existing trusted relationship of the advisor,whom the client has become comfortable
dealing with

52
Q

Override

A

In an underwriting, the additional
payment the Financing Group receives
over and above their original entitlement
for their services as fi nancial advisors and
syndicate managers or leads.

53
Q

Over-the-Counter (OTC)

A

A market for securities made up of
securities dealers who may or may not be
members of a recognized stock exchange.
Over-the-counter is mainly a market
conducted over the telephone. Also called
the unlisted, inter-dealer or street market.
NASDAQ is an example of an over-the-
counter market.

CSC Glossary New (14 decks)

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