ACQUISITION
A corporate action in which a company buys most, if not all, of the target company's ownership stakes to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy when it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both.
ADVERSE CLAIM
The written notice that's filed with a transfer agent by someone other than the registered holder that indicates an interest in a claim against a particular security. Once the transfer agent accepts the notice, they will not transfer the security without notifying the person filing the adverse claim. An adverse claim expires after one year unless renewed. Certain provincial corporate statutes do not provide for adverse claims. Claims against securities issued by corporations incorporated under these statutes are dealt with as stop transfers.
AFFIDAVIT OF LOSS/AGREEMENT OF INDEMNITY
This document allows use of a standardized surety bond when replacing lost, stolen, or destroyed security certificates.
AGENT
The written notice that's filed with a transfer agent by someone other than the registered holder indicating an interest in, or a claim against, a particular security. Once the transfer agent accepts the notice, they will not transfer the security without notifying the person filing the adverse claim. An adverse claim expires after one year unless renewed. Certain provincial corporate statutes do not provide for adverse claims. Claims against securities issued by corporations incorporated under these statutes are dealt with as stop transfers.
ASK PRICE
In securities markets and securities price reports, this is the lowest current or recorded price a security seller is willing to accept.
AUTHORIZED CAPITAL
The maximum number of shares that a corporation may issue under its letters patent, articles of association, or other incorporating documents. The authorized number of shares is sometimes referred to as being “unlimited.”
AFFIDAVIT OF LOSS/AGREEMENT OF INDEMNITY
This document allows use of a standardized surety bond when replacing lost, stolen, or destroyed security certificates.
BENEFICIAL OWNER
See Non-Registered Investor.
BID PRICE
In securities markets and price reports, this is the highest current or recorded price a buyer is willing to pay for a security.
BOARD LOT
The standardized number of shares that are set by a stock exchange as a trading unit for listed shares. The number of shares in a board lot is usually based on the price per share. Setting board lots facilitates trading because trades are executed in standard units and multiples thereof. For example, on the Toronto Stock Exchange and TSX Venture Exchange the board lots are as follows:
Security selling price board lot size:
$0.005 to $0.095 - 1,000 shares
$0.10 to $0.995 - 500 shares
More than $1.00 - 100 shares
BOOK VALUE
The book value of a corporation is the value of the assets to which the investors would theoretically be entitled if the corporation was liquidated. It consists of the total assets less the corporation’s liabilities and the value of intangible assets such as goodwill. The book value of a share is the book value of the corporation divided by the number of outstanding shares.
BOOK-BASED SYSTEM
The electronic recordkeeping system that's used for tracking the ownership of securities and the settlement of securities transactions. The term is mostly used in reference to the recordkeeping systems used by depositories such as the Canadian Depository for Securities.
BROKER
A securities firm or an individual whose associated with a firm that is registered with a securities commission to trade in securities; most brokerage firms are members of a stock exchange.
CANADIAN DEPOSITORY FOR SECURITIES (CDS)
CDS is the Canadian national depository, the clearing and settlement hub that supports Canada’s equity, debt, and money markets by providing a facility for its participants to hold assets and settle trades. It tracks assets and transactions on a book-based system. CDS is owned by major Canadian chartered banks and members of the Investment Industry Regulatory Organization of Canada (IIROC) and TSX Trust Inc.
CANADIAN SECURITIES ADMINISTRATORS (CSA)
The CSA is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets.
CAPITAL GAIN (OR LOSS)
The profit (or loss) resulting from the sale of an asset in respect of which there may be tax implications.
CASH DIVIDEND
The per share cash payment that's made by a corporation to its registered investors.
CERTIFICATE
The printed or engraved document that evidences ownership of a security. It shows the name of the issuing corporation, the amount of the securities it represents, the name of the registered owner(s) (unless it is a bearer certificate), and the date it was issued.
COMMISSIONER FOR OATHS
The person whose licensed by the government to take affidavits. All Canadian lawyers are commissioners for oaths; other people (e.g., bank or trust corporation officers) may be licensed as commissioners, with limited authority to take affidavits in connection with their employer’s business.
Outside Canada, various jurisdictions also have commissioners for oaths.
Lawyers acting as commissioners do not need to use a seal or stamp, but others with restricted authority have a stamp that must be used.
Commissioners do not have authority to certify copies of documents; that must be done by a notary public.
CST requires affidavits in connection with the completion of lost certificate documents and declarations of transmission for estate transfers; both must be sworn before a commissioner for oaths or notary public.
COMMON SHARES
The class of shares that entitles the holders to a share of the corporation’s ownership. In the event of the liquidation of the corporation, holders of common shares rank last after the holders of debt and preferred shares. However, holders of common shares control the corporation by virtue of being entitled to elect the directors and vote on other matters concerning the corporation’s operations.
CONSTRAINED SHARES
Constrained shares, such as shares issued by Canadian banks, insurance, broadcasting, and communication corporations, have limits on the number of shares that can be either owned or voted by a single person or by nonresidents of Canada.
CORPORATE ACTIONS
A generic term for transactions that are initiated by issuers that affect securities held by investors or related entitlements (e.g., takeover bids, mergers, stock splits, reverse splits, rights issues, spin-offs, stock dividends, etc). Security holders’ participation in a corporate action can be mandatory or voluntary–depending on the nature of the transaction.
CUM DIVIDEND
CUSIP stands for "Committee on Uniform Securities Identification Procedures." The CUSIP number is a unique standardized nine-digit number permanently assigned to every stock and bond issue. The number identifies the corporation and class of security, and it is used for processing and recording transactions of that security in Canada and the United States.
DECLARATION OF TRANSMISSION
The declaration of transmission is a document unique to transferring securities. It is an affidavit sworn before a notary public or commissioner for oaths by the deceased’s legal representatives. It provides formal evidence of the following information with respect to the securities:
- The death of the securityholder
- The existence of legal representatives
- The ownership of the securities
- The deceased’s place of residence
- For more information, see the Securities Canadian Stock Transfer section of our website.
DEEMED DISPOSITION
Under certain circumstances, tax rules state that a transfer of property has occurred without a purchase or sale. For example, a person may be deemed to have disposed of their assets when they die.
Under demutualization, eligible policyholders receive shares or other benefits in exchange for their ownership rights as policyholders.
DEPOSITORY TRUST COMPANY (DTC)
The Depository Trust Company (DTC), established in 1973, was created to reduce costs and provide clearing and settlement efficiencies in the U.S. securities markets by immobilizing securities and making "book-entry" changes to ownership of the securities.
DTC provides custody and safekeeping services; deposit and withdrawal services; direct registration services; and dividend, reorganization, and proxy services for its broker-dealer participants.
DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law, and a registered clearing agency with the Securities and Exchange Commission.
DIRECT REGISTRATION SYSTEM (DRS)
The Direct Registration System is a facility administered by the Depository Trust Company (DTC) that provides electronic registration of eligible securities in an investor’s name directly on the books of the issuer as maintained by the transfer agent, and it allows shares to be transferred between the transfer agent and the depository participant broker-dealer electronically. Through DRS, an investor can have his/her securities registered in his/her name without having a certificate issued and can move these securities to his/her DTC participant broker-dealer without risk and delay associated with the use of paper certificates.
DIVIDEND (SEE ALSO "CASH DIVIDEND")
A per share payment made by a corporation to investors, either in cash or other consideration such as shares.
DIVIDEND REINVESTMENT PLAN (DR OR DRIP)
An investment program that's offered by some corporations that permits investors to buy more shares in the corporation using their dividends. Where permitted, additional cash may be contributed (see also Optional Cash Payments and Share Purchase Plan).
DIVIDEND TAX CREDIT
A program that's under the Income Tax Act to encourage the ownership of common and preferred shares of Canadian corporations. Investors are allowed to add 45% for eligible dividends and 25% for ineligible dividends to the amount actually received and obtain a credit against income tax payable based on the increased amount.
DRS
See Direct Registration System.
EMPLOYEE SHARE PLAN (ESP)
A benefit plan that's under which employees can participate in the ownership of their employer by purchasing shares, usually through payroll deductions.
EQUITY (SEE ALSO INVESTOR EQUITY)
The ownership interest of common and preferred investors that's in a corporation and the difference between the assets and liabilities of a corporation.
ESCROW
An agreement under which property, a security or a document is delivered by a grantor, obligor or promisor to a third person, usually a trust company, to be held by the latter until the happening of a contingency or performance of a condition and then by him delivered to the grantee, obligee or promisee. The term is also, however, used to cover a wide variety of arrangements and deposits, most frequently the deposit of treasury shares of new mining and oil companies pending development of the property. In such cases shares may only be released or transferred with the permission of the applicable authority such as the stock exchange and/or the provincial securities commission.
EX-DIVIDEND
When shares trade “ex-dividend,” a buyer will not receive an upcoming dividend after the ex-dividend date set by the market on which the shares trade. The ex-dividend date is two or three days before the record date for the dividend. The number of days is tied to the number of days allowed by the market in question for settling trades and the type of security being traded. (See Cum-Dividend).
EXECUTOR
The person whose appointed in an individual’s will to administer his or her property in accordance with the will after his or her death.
FINANCIAL INTERMEDIARY
An institution such as a trust company, bank, life insurance company, investment dealer, or stockbroker that handles financial transactions for others, including receiving cash for investing on their behalf.
FRACTIONAL SHARES
The shareholding that's amounting to less than one whole share (e.g., 0.0125 shares).
GENERAL POWER OF ATTORNEY
See Power of Attorney.
GREY MARKET (SEE ALSO OTC AND UNLISTED SECURITIES)
The term used when describing the "if, as, and when issued" market for newly authorized but, as yet, unissued and unlisted securities (see also if, as, and when trading).
Once securities are approved for distribution to the public, but before they are actually distributed, they trade on an “if, as, and when issued” basis over the counter until they are actually issued. This phrase in the contract for any trades protects the dealer against delay in receiving the certificates.
INDEMNITY
An agreement whereby one person agrees to protect another from a loss or damage in certain circumstances by agreeing to assume the liability for the loss or damage.
INITIAL PUBLIC OFFERING (IPO)
A private corporation who offers its securities to the public for the first time.
INSIDER
Under the securities laws of most jurisdictions, insiders usually include all directors and senior officers of a corporation and anyone owning more than 10% of the voting shares. Insiders are so named because they may be presumed to have access to inside or material nonpublic information about the corporation. Insiders are required to report trading in the shares of the corporation to the securities commissions, which in turn make the information public.
INSTALLMENT RECEIPTS
A certificate issued in which a predetermined amount of funds becomes due and payable at specified times until fully paid for.
INVESTMENT ADVISOR
A licensed professional who's engaged in giving investment advice on securities for a fee.
INVESTMENT DEALER
A securities firm or an individual (salesperson) whose associated with one, registers with a securities commission to deal in securities. Most investment dealers are members of the Investment Dealers Association of Canada.
INVESTOR
One who acquires securities with the expectation of getting a positive return.
IPO
See Initial Public Offering.
ISSUE
Corporations issue securities of different types and categories (e.g., common shares, preferred shares, first preferred shares, bonds, debentures, notes, etc). Each type or category is known as an issue and has an issue description that distinguishes it from the other types or categories of securities issued by the same corporation.
Issue can also refer to the act of distributing securities.
ISSUED AND OUTSTANDING
The total number of shares that are issued to investors that in the aggregate cannot exceed the authorized amount.
ISSUER
A corporation that sells shares, debt instruments, or any other securities to investors.
INVESTOR
Any individual, corporation, or other party that holds shares in a corporation.
INVESTOR EQUITY (SEE ALSO EQUITY)
The ownership interest of common and preferred investors in a corporation and the difference between the assets and liabilities of a corporation.
INSTALLMENT RECEIPTS
A certificate issued in which a predetermined amount of funds becomes due and payable at specified times until fully paid for.
JOINT REGISTRATION
The type of registration which is used when securities are held in the names of two or more persons.
JUSTICE OF THE PEACE
A lower-level magistrate who's in a certain court system who has authority to act upon minor offenses, commit cases to a higher court for trial, perform marriages, and take affidavits. CST requires sworn affidavits in connection with the completion of lost certificate documents and declarations of transmission for estate transfers. Usually affidavits are sworn by commissioners for oaths or notaries public, but they can also be sworn by justices of the peace.
You can contact justices of the peace through courthouses or government websites.
LETTER OF TRANSMITTAL (LOT)
Letter sent to an investor announcing spin-off, merger, or exchange and how they can participate. Investors complete and return a form, which includes a W-9 and Affidavit of Loss, along with the securities in order to receive cash-in-lieu payments or exchanged securities.
LETTERS PROBATE
Letters probate is the name used in some jurisdictions for the court document confirming the appointment of a person’s executors. Letters probate is called a certificate of appointment as estate trustee in other jurisdictions. For more information, see the Securities Transfers section of our website.
LIABILITIES
Debts of a corporation, that are usually divided into current liabilities (those due within one year) and long-term liabilities (those due in one year or beyond).
LIMITED LIABILITY
The investors’ liability in the event of the bankruptcy of a limited liability corporation cannot exceed the money they have invested in the corporation's shares.
LIQUIDATION
The process of converting a corporation’s property and assets into cash, and distributing the proceeds to the investors after their payment of all debts.
LIQUIDITY
The ease with which a security can be converted to cash without any price discount. Liquidity is dependent on the amount of a given security available in the market and the number of investors interested in buying and selling the security.
LISTED STOCK (LISTED SECURITY)
The security of a corporation that is being traded on a stock exchange.
LETTER OF TRANSMITTAL (LOT)
Letter sent to an investor announcing spin-off, merger, or exchange and how they can participate. Investors complete and return a form, which includes a W-9 and Affidavit of Loss, along with the securities in order to receive cash-in-lieu payments or exchanged securities.
MARKET VALUE
A security’s last reported sales price, that's typically available in newspapers or on online financial sites.
MEDALLION GUARANTEE (SEE ALSO SIGNATURE GUARANTEE)
A type of signature guarantee issued under signature guarantee programs in place in Canada and the United States where the guarantee is backed by insurance. Financial services corporations can apply for the necessary insurance, pay the premium, and, if approved, receive a special stamp to enable them to provide signature guarantees within the limits of their insurance policy.
NCI
See Non-certificated Issue.
NEGOTIABLE
A certificate that's representing a security transferable by delivery, which, in the case of a registered certificate, means that it has a completed securities transfer form attached with the signature guaranteed.
NO PAR VALUE (NPV)
A term that's used to describe the shares that have no stated face value.
NOMINEE
A corporation or person who holds the securities belonging to others to facilitate transfers and trading.
NON CERTIFICATED ISSUE OR ISSUANCE (NCI)
A share that's positioned on the investors register when there is no certificate; holder information and balances are held electronically. NCI shares are a form of book-based shares (see also Book-Based shares).
NON-PROBATED ESTATES
A non-probated estate means that you don’t have a document issued by the court naming the people who are authorized to deal with the deceased person’s assets. You may have a will, but it needs to be confirmed by the court before it becomes a probated estate. Read more about Non-Probated estates.
NON-REGISTERED INVESTOR (BENEFICIAL OWNER)
An owner or holder of shares who's held through an intermediary and not recorded in the name of the holder on the investor register, which is kept by the corporation or its transfer agent.
NOTARY PUBLIC
A person who's licensed by the government to take affidavits and certify copies of documents so that they can be treated as originals. Usually lawyers are notaries public and very occasionally other people may be too. notaries public have wider powers than commissioners for oaths (who essentially can only take affidavits) and use a seal when they sign documents.
Québec does not have notaries public. There are legal specialists called notaries who have exclusive rights in connection with real estate transactions and the administration of wills, but they are not the same as notaries public in other provinces.
ODD LOT
A number of shares that are not equal to, or, an even multiple of a board lot (see Board Lot).
OFFER
The price at which an individual is willing to sell.
OFFER TO PURCHASE
An offer to buy to owners of a certain security. It is often made by another company and usually for more than market price. Also referred to as a “take-over-bid” or “tender offer”.
ONTARIO SECURITIES COMMISSION (OSC)
The regulatory body that's responsible for administering the Securities Act in Ontario (see Securities Act).
OVER-THE-COUNTER (OTC) MARKET
A market for unlisted securities that are maintained by brokers who may or may not be members of a stock exchange.
OFFER TO PURCHASE
An offer to buy to owners of a certain security. It is often made by another company and usually for more than market price. Also referred to as a “take-over-bid” or “tender offer”.
PAR VALUE
A stated face value that's expressed in a currency that is printed on a security.
PAYABLE DATE
A date on which a payment is due to be made to the person who's entitled (e.g., the date on which a dividend is paid to investors).
POWER OF ATTORNEY (PA)
A power of attorney is a legal document signed by a living person, or corporation, giving to a named party or parties certain powers to act on his/her behalf. The powers can be unlimited (general power of attorney), or limited (limited power of attorney) as specified in the document. A person normally appoints an attorney to act on his/her behalf as a matter of convenience, generally because his/her is unavailable by reason of travel or incapacitation other than incompetency.
PREAUTHORIZED DEBIT (PAD)
Someone who authorizes and directs another individual or corporation to automatically withdraw a specified amount of money from his/her bank account at predetermined intervals.
PREFERRED SHARES
A class of shares which entitles the holder to certain rights and privileges ranking ahead of the rights of the holders of common shares, including preference as to payment of dividends and, in the event of the liquidation of the corporation, the right to be paid in full ahead of common investors. However, preferred shares do not normally carry voting rights.
PRIVATE CORPORATION
A corporation who hasn't distributed their shares to the public. There are usually limits on the maximum number of investors. Also, transfers of shares require approval by the directors.
PROBATE
This is a abbreviation of Letters Probate.
PROBATED ESTATES
A probated estate means that you have a document issued by the court naming the people who are authorized to deal with the deceased person’s assets.
If the deceased person left a will, then the people authorized will be the executors or trustees named in the will. If the person did not leave a will, the people authorized will be the administrators appointed by the court.
To determine if you have one of the documents mentioned above, here are some of the names they may have:
- Certificate of Appointment as Estate Trustee
- Letters Probate
- Letters of Administration
- Letters Testamentary
- Read more about Probated Estates.
PROSPECTUS
A legal document that contains financial and other information about securities offered for sale to the public, including information about the issuer, risks, expected returns, and business objectives of the issuer. A prospectus allows members of the public to judge whether or not they wish to buy the securities.
PROXY OR PROXY FORM
A document that is signed by a registered security holder authorizing someone else to represent his/her at a corporation meeting and to vote his/her securities. The proxy may also contain direction as to how the securities are to be voted. The word proxy can also refer to the person appointed.
PUBLIC CORPORATION
A corporation whose shares are issued to the public through a securities offering and are publicly traded on an exchange or over the counter.
RECORD DATE
This date is set by issuers to determine which investors will receive entitlements, such as dividends, or the right to vote at an investor meeting. A holder must be registered on the books of the corporation on the record date to receive the entitlement.
REDEMPTION
The procedure by which a corporation redeems (pays off) its outstanding securities by paying the holder the appropriate redemption price.
REGISTERED INVESTOR
The owner or holder of a corporation's stock whose name is recorded in the investor register that is kept by the corporation or its transfer agent.
REGISTERED RETIREMENT SAVINGS PLAN (RRSP)
A savings plan that's registered with Canada Revenue Agency in which contributions to the plan are tax deductible (with specific limits) and earnings within the plan are exempt from tax until withdrawn from the plan prior to, or at, maturity of the plan, provided the plan holds qualified investments.
REGISTRAR
Generally, a trust company appointed by a corporation to account for and maintain control of the number of shares issued and outstanding. This role includes accounting for cancellations, conversions, splits, and redemptions. In most cases, the transfer agent is also the registrar.
RESTRICTED SHARES
These shares have restrictions on their sale or transfer.
REVERSE SPLIT
A consolidation of outstanding securities to effect a re-organization of capital. For example in a one for five consolidation, each investor would receive one share for every five shares they hold.
RIGHTS
An entitlement that's given to investors to buy additional shares at a predetermined price (usually slightly below the market price). Rights are issued to registered investors as of a given record date, usually on the basis of one right for each share held. A specific number of rights at a stated subscription price entitles the investor to purchase a new share. Rights have an expiry date usually four to six weeks after they are issued. Share purchase warrants are similar to rights but usually have a longer term extending to years (in some cases) and are often issued in conjunction with other securities.
REDEMPTION
The procedure by which a corporation redeems (pays off) its outstanding securities by paying the holder the appropriate redemption price.
SECURITIES
A general term that's applied to investments issued by corporations, governments, and others, such as shares, debt instruments, rights, warrants, etc. Securities can also refer to the document that evidences ownership of the investment. This general descriptive term covers stock certificates, bonds, debentures, notes, warrants, and similar documents, all of which can be sold and transferred from one party to another.
SECURITIES ACT
A provincial act (each province has its own) that's administered by the Securities Commission in each province that sets down the regulations under which securities may be issued to the public.
SECURITIES AND EXCHANGE COMMISSION (SEC)
A regulatory body that's established by the United States Congress to protect investors in the U.S. The SEC administers the U.S. Securities Act of 1933 and other legislation.
SECURITIES TRANSFER FORM
A standard form that's used to transfer securities from one person to another (also known as an irrevocable stock power of attorney). The securities transfer form must be signed by all the registered holders of the securities, and their signatures must be guaranteed. For more information, see the Securities Transfer section of our website.
SHARES (STOCK)
This type of security represents a part ownership interest in a corporation's property, assets, and business.
SHARE PURCHASE PLAN
The investment program that allows investors to acquire additional shares in a corporation by making Optional Cash Payments (see optional cash payments).
SIGNATURE GUARANTEE
A signature guarantee is the device used by transfer agents to assure themselves that a transfer is authorized by the proper person(s). The signature guarantee is given by a financial services corporation and assures the transfer agent that the person(s) signing the transfer is (are) the registered holder(s) named on it.
By giving the signature guarantee, the guarantor warrants to the transfer agent the following: (a) the signature of the investor is genuine, (b) the signer was an appropriate person to endorse the certificate, and (c) the signer has the legal capacity to sign (see also Medallion Guarantee).
SINGLE PURPOSE RRSP
An RRSP in which the owner is only allowed to hold one specific type of investment (e.g., the shares of one corporation).
SPECIAL MEETING
A special meeting is one at which investors are being asked to vote on a special resolution. Where the term "special resolution" is not defined under corporate law for a reporting issuer, it means a resolution that is required to be passed by at least two-thirds of the votes cast.
SPLIT
The division of a corporation's outstanding shares into a larger number of shares. For example, in a 2-for-1 split, a corporation with one million shares outstanding would have two million shares outstanding. With a split, the number of shares outstanding increases, but a investor's proportional ownership remains the same.
STOCK (SHARES)
See Shares.
STOCKBROKER
A corporation or an individual who acts as an agent in buying and selling of securities and charges a commission for their services. Stockbrokers are usually members of a stock exchange.
STOCK DIVIDENDS (SEE ALSO DIVIDEND)
Stock dividend payments are made to investors in the form of additional common stock. Such a payment increases the number of shares each holder owns.
STOCK EXCHANGE
The recognized and regulated organization where security trading takes place.
STOCK EXCHANGE SYMBOL
The abbreviation for a security traded on a stock exchange.
SPOA (ALSO IRREVOCABLE POWER OF ATTORNEY [IPOA])
The legal document used to transfer ownership of securities from one person to another, now known as a securities transfer form. This form must be signed by all the registered holders of the securities, and their signatures must be guaranteed. For more information, see the Securities Transfer section of our website.
STOP TRANSFER ORDER
The order to stop the transfer of ownership of a particular stock or bond certificate (a situation that generally occurs after an investor has notified a transfer agent that a certificate has been lost or stolen).
STREET CERTIFICATE
The endorsed share certificate that's registered in the name of a stockbroker, who is a member of a stock exchange. Such certificates are accepted in trading without the necessity of being transferred.
STREET NAME
Securities registered in the name of a broker, instead of his/her client, are said to be held in street name, which facilitates trading without requiring transfer of ownership of the certificates.
SURETY BOND
An insurance policy that's required so that a replacement security can be issued for one that has been lost, stolen, or destroyed. Typically, an investor wishing to replace a certificate under a surety bond must also remit a small percentage of the market value of the security as an insurance premium.
TAKEOVER BID
An offer to acquire outstanding voting securities or equity securities of a class made to one or more persons, any of whom is in the local jurisdiction or whose last address as shown on the books of the offeree issuer is in the local jurisdiction, where the securities subject to the offer to acquire, together with the offeror's securities, constitute in the aggregate 20% or more of the outstanding securities of that class of securities at the date of the offer to acquire but does not include an offer to acquire if the offer to acquire is a step in an amalgamation, merger, reorganization or arrangement that requires approval in a vote of securityholders
TRANSFER
The change in the ownership of shares by virtue of either the physical delivery of shares from the seller to the buyer or the appropriate entries being made in the share register or a book-based system.
TRANSFER AGENT
The transfer agent is the corporation appointed to keep records of all registered securityholders and to transfer ownership of securities. To determine the transfer agent for securities, first check the securities certificate, which will usually show the transfer agent’s name. Failing that, you can check the issuing corporation’s annual report or website.
TRANSFEREE
The person to whom the transferor assigns (sells) the security to.
TRANSFEROR
The registered owner who assigns (sells) a security to another individual (the transferee).
TREASURY SHARES
The authorized but unissued shares of a corporation.
UNDERWRITING
The transaction pursuant to a formal agreement whereby one or more investment dealers agree to purchase securities that are issued by a corporation for resale to the public.
UNLISTED
The term used to describe a share that's not listed on a stock exchange but traded on the over-the-counter market.
VOTING RIGHTS
The rights that are attached to most securities to vote on certain issues at securityholder meetings. The voting rights attached to common shares give those investors the greatest control over the corporation by virtue of being able to elect the directors of the corporation.
WARRANTS (ALSO SHARE PURCHASE WARRANTS)
The certificate that provides the holder the right over a specified period of time to purchase shares of a corporation at specifically stated prices. Warrants are often attached to new debt or share issues in order to make them more attractive to prospective purchasers.
Warrants are similar to rights except that the latter have a shorter term and are not issued in conjunction with other securities.
YIELD
The rate of return (e.g., dividends or interest) on an investment that's usually expressed as a percentage.