Growth Stock
Financial analysts may determine that a company’s common stock has great potential for superior gains, and dub the security “growth stock.”

Growth Portfolio
Silver Thatch Pensions offers a growth portfolio – made up of about 75% equities,25% bonds. This portfolio is intended for individuals who are looking for greater potential returns and who are willing to accept more risk than the average balanced fund.



In order to protect yourself from loss due to market price changes, you may take specific action to reduce your risk. This is known as a hedge.

Holding Company
In cases where one company owns the securities of another company (usually with voting control), the company in control is called the holding company.



Inflation Risk
Inflation robs you of your money’s purchasing power. As an investor, you should be wary of inflation’s effect on your investment returns, especially over the long term. Your investment returns should always outperform inflation.

Inflation is the term used to indicate cost of living increases. The rate of inflation expressed as a percentage is the change in the Consumer Price Index (CPI). Since inflation decreases your purchasing power, your investment planning should consider the effect of inflation on your earnings.

Investment Company or Fund
A company or fund that uses its capital to invest in other companies.

Investment Counsellors
The professionals engaged to provide portfolio management services to a mutual fund.

Income Portfolio
Silver Thatch Pensions offers an income portfolio – made up almost entirely of bonds. This ultraconservative portfolio is intended for individuals who are looking for maximum security (i.e., minimal short-term fluctuations in value) and who are willing to accept modest returns.



Lagging Indicators
Statistical data that describe business cycle changes that already occurred in the economy as a whole. Lagging indicators include new plant equipment expenditures, consumer credit, short-term business loans, total manufacturing inventories.

Leading Indicators
Statistical data that indicate upcoming changes in the economic business cycle. Leading indicators include employment, capital investment, business starts and failures, profits, stock prices, housing starts and certain commodity prices.

You may choose to invest in liquid securities, which may be readily bought or sold at fair market value. This reduces risk due to changes in your portfolio.

Long-Term Bond
A maturity date on a bond or debenture that is more than 10 years away is considered long term.



Major Trend
Although the market will have temporary ups and downs, there is generally an underlying price trend that prevails and is termed the major trend.

Market Price
The price at which a security is currently trading.

Market Risk
Market risk refers to the short-term ups and downs of the market and the possible risk of a loss in the short term. The level of market risk varies by investment but historical returns show that the greater the market risk, the greater the return over the long term.

Medium-Term Bond
A bond or debenture with a maturity date of between five and 10 years in the future.

Monetary Policy
A policy implemented by a country’s government through its central bank (e.g. the Bank of Canada) to control interest rates and the money supply in the economy.

Money Markets
That part of the capital market where short-term financial obligations are bought and sold. These include government treasury bills, commercial paper and other debt securities with maturities of less than one year.

Mutual Fund
Mutual funds pool money from many investors and invest it in securities according to the stated objectives of the fund. Professional investment counsellors invest the money on behalf of the investors in securities such as stocks, bonds and money market instruments.

Mutual Fund Manager
The individual responsible for the business affairs of a mutual fund. These include the provision of investment management and administrative services to the fund.



Net Asset Value
The market value of the securities held in a mutual fund plus any current assets less any current liabilities.

Net Asset Value per Unit (Unit Price)
The unit price of a mutual fund is its net asset value per unit. It is calculated at the close of each valuation day by dividing the net asset value by the number of units outstanding. Unit prices can be found in most daily Canadian newspapers.

New Issue
The first time a company offers stocks, a new class of stock, or bonds, the securities are described as a new issue for that company.

No-load Fund
A mutual fund that does not charge a commission or fee for buying or selling its units.



Purchasing an option allows you to buy or sell a security at a fixed price within a set period of time.