Investment

Definition

  • Putting money into something, such as a stock, bond, or property, usually for income or profit.

Synonyms
capital, vested interests, ante, treasure, property, nest egg, financial assets, money investment

Related Terms and Acronyms

  • Angel Investors Definition,
    • Private individuals with capital to invest in business enterprises.
  • Appreciation Definition,
    • An increase in the value of a property or item.
  • Bond Definition,
    • A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
  • Canada Savings Bond (CSB) Acronym, Canada,
    • A secure way for Canadians to save. The bonds, which are a form of debt issued by the Canadian government, are cashable, with proper identification, at any time at most Canadian financial institutions.
  • Canadian Investor Protection Fund (CIPF) Company Est. 1969, Canada, Important,
    • A Canadian not-for-profit that protects investors from a CIPF members' bankruptcy.
    Non-profit organization that provides investor protection for investment dealer bankruptcy.
  • Capital Assets Definition,
    • Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
  • Capital Investments Definition,
    • Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
  • Commercial Paper (CP) Acronym,
    • Unsecured notes issued by companies that mature within nine months. Generally, commercial paper is issued only by the larger and more credit worthy companies.
  • Cost Basis Definition,
    • The original price paid for an investment which is also known as the basis or tax basis. The cost basis includes any commissions or fees paid when the investment was purchased.
  • Debt Definition,
    • Money one person or firm owes to another person or firm.
  • Derivatives Definition,
    • Financial contracts whose value is derived from the value of some underlying asset, rate or index. Derivatives are used as risk-management tools by governments and corporations to reduce exposure to risk, mainly related to fluctuations in foreign-exchange and interest rates. Derivative instruments include swaps, options, futures and forward contracts and are used by banks in two principal activities: sales/trading and asset/liability management.
  • Equity Definition,
    • The value of a property minus outstanding mortgage debt and other liens.
    • Ownership in an asset.
  • Fixed-Return Investments Definition,
    • Investments that provide a stable return.
  • Foreign Investment Definition,
    • Investing money into a business in another country.
  • Guaranteed Investment Certificate (GIC) Acronym, Important,
    • An investment that pays a set rate of interest over a fixed period of time.
  • Housing-equity Partnership Definition,
    • An arrangement in which one buyer lives in a home and the other has an ownership stake as an investment. The partners split the capital gain after the property is sold.
  • Internal Rate of Return (IRR) Acronym, Important,
    • That rate at which the present worth of all present and future investment costs equals the present worth of all present and future investment benefits.
  • Investment Banking (IBK) Acronym,
    • Bank operations that manage a bank's funding position, as well as its holdings of Treasury bills, bonds and preferred and common stock.
  • Investment Canada Act (ICA) Acronym, Canada,
    • A Canadian law that gives the government power to deny foreign investments of "significant" size if they fail to provide a "net benefit to Canada."
  • Investment in the Contract Definition,
    • The principal that has been contributed to an annuity.
  • Investment Income Definition,
    • Income that is earned from investments such as interest, dividends, and capital gains.
  • Investment Industry Regulatory Organization of Canada (IIROC) Company, Toronto, Ontario, Canada, Important,
    • An organization that regulates, sets standards, and has quasi-judicial power over securities dealers in Canada.
  • Investment Property Definition,
    • Property bought with the hope of it making money.
  • Investments in Affiliates Definition,
    • A situation where an investor has a great deal of control over the operation and/or financial management of his or her investment.
  • Issuer Definition,
    • A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
  • Money Market Mutual Fund (MMMF) Acronym,
    • A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large CDs. Also referred to as money market fund (MMF).
  • Mutual Fund Definition,
    • A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
  • Open-end Fund Definition,
    • A mutual fund that allows investors to buy or sell shares in the fund at their net asset value each business day.
  • Other Income/Expenses Definition,
    • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
  • Parking (prk) Abbreviation,
    • A term that refers to depositing cash in a high-yield money market account until it is transferred to another account to pay bills.
  • Portfolio Definition,
    • A collection of investments.
  • Protected Cell Company (SPC) Acronym,
    • A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
  • Protected Fund Definition,
    • A mutual fund that guarantees investors a return on their investments.
  • Registered Retirement Savings Plan (RRSP) Acronym, Canada, Very Important,
    • A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
    Tax deferred investment contribution used to reduce income tax.
  • Return Definition,
    • Any increase in value or in income you earn on purchase or investment.
  • Return on Assets (ROA) Acronym,
    • A ratio that shows how profitable a company is when compared to its assets.
  • Return on Investment (ROI) Acronym, Very Important,
    • The profit an investment generates, expressed as equity divided by cash flow.
  • Securities/Investment Dealer Definition,
    • One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
  • Security Definition,
    • Property designated as collateral.
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • A document stating ownership of a stock or bond.
  • Segregated Fund Definition,
    • Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
  • Specialized Financing Corporation Definition,
    • A term in the Bank Act referring to specialized business-management services such as making investments, negotiating mergers and acquisitions and many other services traditionally offered as merchant-banking services.
  • Stock Definition,
    • A share of the ownership of a company.
  • Sub Account Definition,
    • A separate financial account used to keep track of a department's finances.
  • Unaffiliated Investments Definition,
    • Investments in assets made by an insurance company where they have no control over the assets.
  • Yield-to-Maturity (YTM) Acronym,
    • The internal rate of return on an investment. Typically takes into account all investment returns and their timing.
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