GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Asset

Synonyms:	benefit, gain, important, value, worth
Filed Under:	financial-banking, insurance, legal-contracts, mortgages
Tags:	banking, contract, insurance, legal, mortgage

asset: 1. Any item or possession of monetary value that is legally owned by a person. Assets can include real or personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, etc.

adjusted basis The amount you use to determine your profit or loss from a sale or exchange of property.
fixed assets (FA) Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.
home equity (HE) The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
non-liquid asset A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
protected cell company (SPC) A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
secondary market A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
segregated fund Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
short-term capital gain (STCG) Your gain from the sale of a capital asset that you held for one year or less.
solvency To be able to meet one's financial liabilities in the short or long term.
trustee A person who holds and manages assets for the benefit of beneficiaries.