Your All-in-One Canadian Financial Dictionary
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time. Also known as a statement of financial position.
Basis Points
A unit of measurement equal to 1/100th of 1%. Basis points are used to describe changes in financial instruments and interest rates. One hundred basis points equals 1%.
Bearer Bond
A bond that is owned by whoever holds the actual bond certificate. Bearer bonds are not registered in any owner's name and are transferable by physical delivery.
Bid-Ask Spread
The difference between the price at which a market maker is willing to buy (bid) and the price at which they are willing to sell (ask) a security.
Blue Chip Stock
Stock issued by a large, well-established, and financially sound company with a long history of reliable earnings and dividend payments.
Bond
A fixed-income security representing a loan made by an investor to a borrower, typically a corporation or government. Bonds pay periodic interest payments and return the principal at maturity.
Book Value
The value of an asset or company as shown in the balance sheet. It is calculated as total assets minus total liabilities and intangible assets.
Breakeven Point
The point at which revenues equal expenses, resulting in neither profit nor loss. At breakeven, total costs and total revenues are equal.
Broker
A person or firm that buys and sells securities on behalf of clients in exchange for a commission. Brokers act as intermediaries between buyers and sellers.
Budget
A financial plan for a defined period that estimates revenues and expenses. Budgets help individuals and organizations manage their finances and plan for future spending.