Your All-in-One Canadian Financial Dictionary
Balance Sheet
A snapshot of a company’s finances at a specific moment. It shows what the company owns (assets), what it owes (liabilities), and what’s left over for the owners (equity).
Balanced fund
An investment that mixes stocks and bonds in one package. It’s designed to give you some growth while keeping risk more stable.
Bank draft
A secure form of payment issued by your bank. The money is taken from your account right away, so the person receiving it can trust it won’t bounce. Often used for big purchases like a car or home deposit.
Banking card (Debit card)
The card linked to your bank account. You can use it to pay for things or withdraw cash directly from your own money.
Banking machine (ATM)
Modern term for an ATM, used to access your money or handle basic banking tasks.
Basis Points
A small unit used to describe changes in interest rates or returns. One basis point equals 0.01% (so 100 basis points = 1%). It’s often used to show precise changes, like a rate moving from 5.00% to 5.25% (a 25 basis point increase).
Bearer Bond
A bond that belongs to whoever physically holds it. There’s no registered owner, so it can be transferred just by handing it over, making it less common today due to security risks.
Beneficiary
The person who receives money from your financial accounts or policies (like life insurance or an RESP) if something happens to you.
Bond
A type of investment where you lend money to a government or company. In return, they pay you regular interest and give back your original amount at the end of the term.
Book Value
The value of a company based on its financial records. It’s what’s left after subtracting what the company owes from what it owns.