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ILC Glossary of Financial Terms


From If, as and when to Issuer Bid

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  1. Income Stock
  2. Installment Receipts
  3. Interim Statements
  4. Issue
If, as and when:

Indicates a conditional transaction in a security that is authorized for issuance, but not issued yet. New primary offerings can trade on an "if, as and when" issued basis prior to listing on an exchange.


The purchase and sale of the same security within a short period of time, usually a day, week or month. An in-and-out trader is more interested in profiting from day-to-day price fluctuations than in receiving dividends or long-term growth.

In-The-Money Option:

A call option is in-the-money if its exercise or strike price is below the current market price of the underlying stock. A put option is in-the-money if its strike price is above the current market price of the underlying stock.

Income Bond:

Generally, an income bond promises to repay principal but only to pay interest when the company earns a certain amount of money. In some cases, if the interest is unpaid on an income bond, it may accumulate as a claim against the company when the bond matures.

Income Stock:

A common stock that pays, or is expected to pay, an attractive dividend to shareholders. Usually stock from a more mature company that does not expect expansion or growth - therefore money is not required internally for equipment, etc.

Index or Average:

A statistical tool that measures the state of the stock market or the economy, based on the performance of stocks or other meaningful components. Examples are the TSX Composite Index Composite Index, The Montreal Exchange Market Portfolio Index and the Dow Jones Industrial Average.


Directors, senior officers and any other people, such as lawyers and accountants, who can be presumed to have access to non-public information concerning a company. It also includes anyone owning more than 10% of the voting shares in a corporation.

Insider Report:

A report of all transactions in the shares of a company made by those considered to be insiders of the company. It is submitted each month to the provincial securities commissions and allows the administrators to monitor trading by such people to ensure regulations are not violated.

Installment Debentures:

A bond or debenture issue in which a predetermined amount of the principal becomes due and payable each year. Also called a serial bond or debenture. This is popular as a municipal financing vehicle.

Installment Receipts:

A new issue of stock sold with the obligation that buyers will pay the issue price in a series of installment payments instead of one lump sum payment. This is also known as partially paid shares. The buyer usually pays a deposit upon settlement, perhaps one-half the issue price of the shares, with the balance to be paid in one year.

Institutional Clients:

The sales department of a securities firm serves two categories of clients. The institutional segment deals with banks, insurance companies, trust companies, pension fund managers and large corporations. The retail branch deals with individual investors.

Intangible Asset:

An asset which has no physical substance, such as goodwill, patents, trademarks and copyrights.


Money charged by a lender to a borrower for the use of his or her money.

Interim Certificates:

When a new issue of a security is marketed, temporary certificates, called interim certificates, are sometimes delivered. These are later exchanged for permanent or definitive certificates.

Interim Statements:

These are financial statements issued for a certain period within a fiscal year, such as a three-month or first quarter interim statement.

Intrinsic Value:

That portion of a warrant, right or call option's price that represents the amount by which the market price of the underlying security exceeds the price at which the warrant, right or call option may be exercised. The intrinsic value of a put is calculated as the amount by which the underlying security's market value is below the price at which the put option can be exercised.


For most companies this is merchandise, raw materials, unfinished products and finished products of a business that have not yet been sold. Investment dealers hold inventories of shares, bonds, debentures and other investment products to fill long and short positions for clients.

Inventory Turnover Ratio:

This is the cost of goods sold by a company, divided by its inventory. The ratio may also be expressed in terms of the number of days required to sell current inventory by dividing the ratio into 365. This ratio indicates the efficiency of management in turning over the company's inventory and can be used to compare with other companies in the same field.


The purchase or ownership of a security to make money by gaining income, increasing capital, or both. Investments may also include artwork, antiques and real estate.

Investment Advisor:

This is a person employed by an investment dealer who provides investment advice to clients and executes trades on their behalf in securities and other investment products. Investment advisors must attain set educational qualifications, follow certain rules and regulations and be registered by the securities commission in the province in which he or she works.

Investment Counsellor:

A specialist in the investment industry paid by fee to provide advice and research to investors with larger sized accounts.

Investment Dealer:

This refers to securities firms which employ investment advisors to work with retail and institutional clients and has underwriting, trading and research departments.

Investment Dealers Association of Canada (IDA):

The Canadian investment industry's national trade association and self-regulatory organization. The IDA represents and polices the activities of approximately 114 member firms.


A person whose principal concern in the purchase of a security is the minimizing of risk, compared to the speculator who is prepared to accept calculated risk in the hope of making better-than-average profits, or the "gambler" who is prepared to take even greater risks. More generally it refers to people who invest money in investment products.


Any of a company's securities, or the act of distributing them. Issued shares refer to that part of the authorized shares which have been issued for sale by the corporation. The total number of authorized shares does not have to be issued.

Issuer Bid:

An offer by an issuer to buy back some of its own securities. This is usually done because the company feels the market is undervaluing its securities.

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