Glossary of Investment Terms

Welcome to the Investment Glossary. We hope you find these terms useful. Should you have a term you would like addressed, please let us know. We would be happy to add it to our list.

Portfolio A collection of investments owned by an investor, an institution or a mutual fund.

Preferred Shares Shares that carry a fixed dividend rate which the company is obliged to pay before it distributes dividends to common shareholders. Such shares rank ahead of common stock, and after the debenture holders, on the dissolution of a company.

Prime Rate The interest rate charged by a chartered bank to its most creditworthy borrowers.

Private Placement The underwriting of a security and its sale to a few buyers, usually institutional, and in larger amounts.

Put Option An investment product that gives you the right to sell shares at a predetermined price for a limited period of time.