Refers to Section 60(J) of the Income Tax Act which allows the tax-free transfer of pension benefits, deferred profit sharing plans, retiring allowances and superannuation benefits to a registered retirement savings plan.
Accrued interest (Intérêt couru, intérêts cumulés)
Interest that is due on a bond or other fixed income security since the last interest payment was made.
Adjusted Cost Base (Prix de base rajusté)
It is the calculation used to determine the cost of an investment. Revenue Canada requires investors to use the adjusted cost base (ACB) when calculating capital gains or losses for tax purposes. The "cost base" of an investment is the initial purchase price plus any related costs, such as commissions or fees. The cost base may never change if there are no additions or disposals ("redemptions" in the case of funds). However, when changes are made, the cost base must be "adjusted" to reflect the new cost base of the investment for tax purposes.
The beneficiary of an annuity.
A contract that provides for periodic payments (fixed or variable) for life or over a certain period of time.
Arm's length transaction (Transaction sans lien de dépendance)
A transaction between two parties who are not related or affiliated in any manner, to avoid any question or conflict of interest.
Asset (Avoir, actif, bien)
Any item of economic value owned by an individual or corporation
Asset Allocation Portfolio (Portefeuille de répartition de l'actif)
A single mutual fund which tries to accomplish the goals of dividing investments among different kinds of assets to optimize the risk /reward tradeoff based on an individual's specific situation and goals.
Assign (Ayant droit)
An individual who has acquired rights from another person.
Average Cost (Coût moyen)
The total cost of all the fund shares divided by the total number of shares owned. See also Adjusted Cost Base.
Back-end load (Frais de rachat, frais de sortie en France)
A sales charge or commission paid when an individual redeems an investment. It is also called Deferred Sales Charge (DSC).
Balance sheet (Bilan)
A quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth.
Balanced fund (Fonds équilibré)
A mutual fund that buys a combination of common stocks, preferred stocks, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk.
Beneficial owner (Propriétaire bénéficiaire)
The real owner of a security. An investor may choose to have securities registered in the name of a trustee, nominee or broker to facilitate transfer or anonymity. However, the investor who receives interest, dividends or profits from the securities, is the beneficial owner.
An individual, institution, trustee or estate which receives, or may become eligible to receive, benefits under a will, retirement plan or other contract.
Board lot (Lot régulier)
The normal unit of trading of a security : 100 shares of stock or 5 bonds. Also called round lot.
A certificate issued by a government or a public company, promising to repay borrowed money at a fixed rate of interest for a specified length of time, and to repay the loan on its maturity.
Book value (Valeur comptable, valeur livre)
The original value of an asset as it appears on the company's balance sheet.
Breadth and Depth of the Market (Pouls du marché)
The criterion of liquidity of the market is split into two subcriteria : the breadth and the depth of the market. The breadth of the market is determined by the float (the number of publicly traded shares that can be offered for sale), the daily transaction volume and the turnover rate, that is the ratio of turnover to market capitalization. Depth is measured by the average spread (which is the difference between the best bid and best ask prices in percentage terms) and by volatility, which is deemed to be evidence of a continuing flow of bids and asks. A market is considered to be « deep » when the spread between the bid and ask prices is minimal.
Business day (Jour ouvrable)
The part of a day during which a company operates, usually from 9am to 5pm Monday through Friday.
Canada Customs and Revenue Agency - CCRA (Agence des douanes et du revenu du Canada)
Its long-standing mission is to promote compliance with Canada's tax, trade, and border legislation, and regulations through education, and responsible enforcement, thereby contributing to the economic and social well-being of Canadians. http://www.ccra-adrc.gc.ca
Canadian Life and Health Insurance Association - CLHIA (Association canadienne des compagnies d'assurance de personnes - ACCAP)
The national self-regulatory organization of the insurance industry. http://www.clhia.ca
Capital gain or loss (Gain ou perte en capital)
The difference between the selling price and the initial purchase price of an asset.
Capital stock (Capital-actions, capital social d'une entreprise)
The number of shares authorized for issuance by a company's charter, including both common shares and preferred shares.
Cash on delivery - COD (Livraison contre remboursement)
A transaction in which goods are paid for in full in cash or by certified cheque immediately when they are received by the buyer.
Certificate of assignment (Attestation de cession)
The document by which the bankrupt agrees to assign his/her assets.
Certificate of appointment of trustee in bankruptcy(Certificat de nomination du syndic de faillite)
A document appointing a specific trustee to administer and dispose of the estate of a bankrupt person for the benefit of the creditors.
Chattel mortgage (Hypothèque mobilière)
A lien on assets other than real estate backing a loan.
The verification of information between two brokers in a securities transaction and the subsequent settlement (delivery of certificates in exchange for payment). The Clearinghouse is the agency which matches the information, settles the trade and regulates delivery.
Clone fund (Fonds cloné)
A fund which tries to copy the strategy of a successful, existing fund.
Closed-end fund (Fonds à capital fixe)
A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Since these funds can also be listed on an exchange, they are sometimes called Exchange traded funds.
Collateral (Nantissement, garantie, sûreté)
Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default It is also called security.
Common stock (Actions ordinaires)
Securities representing equity ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.
Compliance officer (Responsable de la conformité des règlements)
The officer that oversees trading and other activities to ensure that regulations are being adhered to.
Compound interest (Intérêts composés)
Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods.
Something of value, such as money, given by one party to another in exchange for an act or promise.
The process of exchanging units of a mutual fund for units of another mutual fund. See also Switch.
Corporate Resolution (Résolution de société)
A document which authorizes designated officers of the corporation to submit transactions in the registered account on behalf of the corporation.
Credit union (Coopérative de crédit, Caisse populaire)
Credit unions are non-profit, member-owned, financial cooperatives entirely operated by and for their members.
Simultaneous redemption-purchase of a security (very often for tax purposes).
CUSIP - Committee on Uniform Security Identification Procedure
(Comité sur l'uniformité de la procédure d'identification d'une valeur mobilière).
CUSIP is a standard system of securities identification and securities description that is used in electronically processing and recording securities transactions in North America.
Typically a trust company, the custodian holds and safeguards all assets on behalf of individuals.
An unsecured debt backed only by the integrity of the borrower, not by collateral.
Deferred Profit Sharing Plan (Régime de participation différée aux bénéfices)
An employer-sponsored benefit program under which certain amounts may be set aside, per participating employee, out of the profits and invested in a tax-deferred, registered account.
Deferred Salary Leave Plan (Régime d'échelonnement du traitement aux fins de congé)
Plan which allows employees to defer a portion of their salary for a period of twelve to seventy-two months. The deferred salary must then be used in financing a leave of absence for any reason for duration's of six to 12 months, subject to the approval of the employer and the terms and conditions of the Plan.
Demutualization is the process by which a mutual life insurance company is converted into a company with common shares. A mutual company is owned by its participating policyholders, but the ownership rights are not tradable or exchangeable. Under the process of demutualization, common shares are issued to eligible participating policyholders who then have the opportunity to retain or sell the shares.
Depth of the Market See Breadth and Depth
Dividend Reinvestment Plan (Plan de réinvestissement des dividendes)
An investment plan enabling share holders to automatically reinvest cash dividends and capital gain distributions, thereby accumulating more stock without paying brokerage commissions.
Dollar cost averaging (Méthode de la moyenne d'achat)
An investment strategy designed to reduce volatility in which mutual funds are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving.
DSC fees (Frais de rachat) See Back-end load.
Employee Benefit Plan (Régime de prestations aux employés)
An arrangement under which the employer or someone not dealing at arm's length with the employer makes contributions to another person (called a custodian) and under which one or more payments will be made to or for the benefit of employees, former employees or persons with whom the employees and former employees do not deal at arm's length.
Employer matching contribution (Abondement)
The amount that a company contributes to its employees' retirement accounts, typically in proportion to each employee's contribution.
Equity or Shareholder's equity (Avoir des actionnaires, capitaux propres de l'entreprise)
Shareholders' ownership interest in a corporation in the form of common or preferred stocks.
Escrow (Dépôt entre les mains d'un tiers; blocage de titres)
A written agreement setting up the allocation of securities deposited by the giver or grantor to a third party, called the escrow agent, for the eventual benefit of the second party, called the grantee.
All assets owned by an individual at death, to be distributed according to the individual's will.
Exchange traded fund see Closed-ended fund.
First 60 days Contribution receipt (Reçu de cotisation pour les 60 premiers jours)
Receipt issued for the contributions made into an RSP during the first 60 days of the year. This receipt can either be applied to the previous year or the current year tax return.
Fixed income investment (Placement à revenu fixe)
A fixed income investment is essentially an IOU in which the issuer promises to repay the investor both principal and interest at maturity. Bonds, debentures and preferred shares are fixed income securities that generate a predictable stream of interest or dividend.
Flow-through shares (Actions accréditives)
A Flow-through Share (FTS) is simply a common share of an oil and gas company. The name "flow-through" is attached because the company agrees to do exactly that - flow-through to the purchasers of these shares certain tax deductions that are generated from the company's capital expenditure programs.
Foreclosure (Saisie immobilière)
A legal procedure in which real estate is sold by the lender to pay a defaulting borrower's debt.
Foreign content (Contenu étranger)
The amount of foreign property in a plan. As of today (year 2001), the foreign content limit is 30 % of the book value of the plan.
Free units -10% DSC free redemption (Unités gratuites - rachat des 10% sans frais)
A service offered by mutual fund companies that allows an investor of back-end load funds to redeem a small portion of their holdings without paying a redemption fee. It is calculated as 10 % of the market value of the amount purchased, and in subsequent years, 10 % of the previous year-end market value. Although widely used, the term "free units" is improper since only the redemption fee is waived on those specific units.
Front-end load (Frais d'acquisition, frais d'entrée en France)
Sales charge or acquisition fee applied to an investment at the time of purchase.
Situation in which an employer is instructed by a court to withhold some or all of an employee's wages to pay off the settlement of a lawsuit which that employee lost.
Global fund (Fonds mondial)
A mutual fund which invests throughout the world, including Canada. See also International fund.
Grandfather clause (Clause des droits acquis)
A provision exempting persons or other entities already engaged in an activity from rules or legislation affecting that activity.
Group RSP (RÉR collectif)
A group RSP is essentially a collection of individual RRSPs for the employees or members of the applicable organization. Individuals belonging to the organization or their spouses are eligible to participate. The organization can act as agent for the annuitant for certain purposes, such as receiving contributions to the RSP.
Growth fund (Fonds de croissance)
A mutual fund whose aim is to achieve capital appreciation by investing in stocks likely to have superior growth potential.
Guaranteed Investment Certificate - GIC (Certificat de placement garanti - CPG)
A deposit instrument requiring a minimum investment at a predetermined rate of interest for a fixed term.
Hedge fund (fonds de couverture, en France: fonds d'arbitrage)
A fund usually used by wealthy investors or institutions (because of legal restrictions) which uses aggressive strategies including selling short, leverage, program trading, swaps, arbitrage and derivatives to offset or reduce the risk associated with an existing investment or group of investments.
Home Buyers'Plan - HBP (Régime d'accession à la propriété)
The HBP is a program that allows you to withdraw up to $20,000 from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself.
The pledging of securities or other assets as collateral to secure a loan.
IDA - Investment Dealers Association (Association des courtiers en valeurs mobilières)
The Investment Dealers Association of Canada is the national self-regulatory organization and trade association of the Canadian securities industry. The Association regulates the activities of investment dealers in terms of both their capital adequacy and conduct of business. http://ida.ca
IFIC - Investment Funds Institute of Canada (Institut des fonds d'investissement du Canada)
The national trade association for the Canadian mutual fund industry. A key part of IFIC's mandate is to educate investors and potential investors about mutual funds and mutual fund investing. http://www.ific.ca
Income fund (Fonds de revenu)
A mutual fund which emphasizes current income in the form of dividends or coupon payments from bonds and/or preferred shares, rather than growth.
Index fund (Fonds indiciel)
A mutual fund that tries to mirror the performance of a specific index, such as the TSE300.
Individual Pension Plan - IPP (Régime de retraite individuel)
This is a special plan created for the key employees of a corporation, or the shareholders who hold more than 10 % of the capital stock of the corporation. To set up an individual pension plan, MRS requires a trust agreement signed and accepted by both the employer and MRS, a copy of the plan text, an actuarial valuation report, approval from the applicable pension board and a letter of direction from the client / employer appointing an investment manager to the pension plan.
International fund (Fonds international)
A mutual fund which invests in stocks and bonds of companies outside of Canada. See also Global fund.
Investment fund (Fonds de placement)
A term generally interchangeable with "mutual fund".
Joint tenants with rights of survivorship (Copropriétaires avec gains de survie)
Ownership of property by two or more people in which the survivors automatically gain ownership of a decedent's interest.
Joint tenants in common (Tenants joints avec propriété en commun)
All tenants in common share equal property rights except that, upon the death of a tenant in common, that share does not go to the surviving tenants but is transferred to the estate of the deceased tenant. Unity of possession but distinct titles.
Know Your Customer (Bien connaître son client)
A guideline stated or implied by various securities regulatory bodies which requires that brokers determine the suitability of investments for customers before making recommendations.
Labor sponsored fund (Fonds des travailleurs)
Labour-sponsored funds (LSFs) are pools of workers' savings money which provide subsidized venture capital to small and medium-sized businesses.
Leverage (Effet de levier, d'endettement)
The borrowing of money for investment purposes. (Speculation that the borrowed capital will bring in profits greater than the interest payable).
Leveraged buy-out - LBO (Rachat d'entreprise financé par l'endettement)
Takeover of a company or controlling interest in a company, using a significant amount of borrowed money.
Lien (Privilège, droit de rétention)
The mortgage lender's legal claim to the borrower's property.
Life Income Fund - LIF (Fonds de revenu viager - FRV )
LIFs (life income funds) are special RRIFs (registered retirement income funds) into which an individual can transfer amounts from his/her supplemental pension plan or locked-in retirement account (LIRA).
Unlike RRIFs, which have no ceiling on withdrawals, LIFs have a limit placed on how much the individual can withdraw each year because the purpose of a LIF is to provide an income for life. The withdrawal range is calculated so that there is enough money in the account to purchase a Life Annuity before the end of the calendar year in which the individual turns 80.
Locked-In Retirement Account - LIRA (Compte de retraite immobilisé - CRI)
Similar to a Registered Retirement Savins Plan (RRSP) in that you have control over investments, but access to them is restricted until age 55. A LIRA often holds employer contributions transferred from a company pension plan upon leaving the company.
The money in a LIRA is locked in, because it must be used to purchase retirement income. Therefore, you cannot withdraw it unless you submit a medical certificate stating that your life expectancy has been reduced by a physical or mental disability.
Load (Droit à payer)
Commissions charged on the purchase or sale of mutual fund units.
The amount paid by a client when he uses credit to purchase a security, the balance being loaned by the investment dealer against acceptable collateral.
Market price (Valeur au marché)
It is usually considered to be the last reported price at which the stock, fund or bond is sold.
Market value (Prix du marché)
The price that the market - any market - sets at a particular time as the price at which an asset can be bought or sold.
The date on which a loan, GIC, bond or debenture comes due and must be redeemed, or paid off.
Money Market Fund (Fonds de marché monétaire)
A mutual fund that invests primarily in treasury bills and other low risk short-term investments.
A contract by which money is lent by a financial institution for buying a house or other property, the property itself being the security.
Mortgage Fund (Fonds hypothécaire)
A mutual fund that holds mortgages.
Mutual fund (Fonds commun)
A mutual fund is a pool of assets invested on behalf of investors. Individual investors own a percentage of the value of the fund as represented by the number of units they purchase.
Mutual Fund Dealers Association - MFDA (Association des courtiers en fonds communs)
It is the mutual fund industry's self-regulatory organization ("SRO") for the distribution side of the industry. It is responsible for regulating all sales of mutual funds by its members in Canada. The MFDA does not regulate the funds or fund manufacturers. This responsibility remains with the securities commissions. http://www.mfda.ca
NAV - Net Asset Value (Valeur liquidative, valeur de l'actif net)
The dollar value of a single mutual fund share, based on the value of the underlying assets of the fund minus the liabilities, divided by the number of shares in existence. This is calculated at the end of each business day.
No-Load fund (Fonds sans frais)
An investment fund that does not charge front or back end commissions.
Nominal capital (Capital social déclaré)
The par value of shares of stock a corporation has issued.
Nominal value (Valeur nominale)
The value of a share when issued.
The registered shareholder in a third-party account. The nominee has trading authority over the account but the actual securities are held by the beneficial owner.
Non-qualifying RRIF (FRR non-admissible)
A RRIF that does not qualify - See Qualifying RRIF
Normal course issuer bid (Offre publique de rachat d'actions dans le cours
normal des activités)
A program which allows a company to buy back its own outstanding shares from the market so that they may cancel them. This usually happens when a company estimates that its shares are undervalued by the market. The amount the company may repurchase is subject to regulatory approval.
NR4 receipt (Reçu NR4) See T4RIF
OAS - Old Age Security (Sécurité de la vieillesse)
A universal, federal benefit provided to retired Canadians aged 65 and older. http://www.hrdc-drhc.gc.ca/isp/common/oastoc_e.shtml
Odd lot (Lot irrégulier)
Less than 100 shares of a stock; or less than 10 shares of a very thinly traded stock.
Off the books (Non-déclaré, sans caractère officiel, hors-Livre)
Payments for which no formal record is kept.
Open-end fund (Fonds à capital variable)
A mutual fund that continuously issues and redeems units, so the number of units outstanding varies from day to day.
Ontario Securities Commission (Commission des valeurs mobilières de l'Ontario)
The Ontario Securities Commission administers and enforces securities legislation in the Province of Ontario. http://www.osc.gov.on.ca
Orphan clause (Clause de disparité de traitement)
A clause intending to exclude a group of employees from the application of a collective agreement or some of its provisions.
Over-the-counter (Hors cote)
A security which is not traded on a recognized exchange, usually due to an inability to meet listing requirements.
PAC - Pre-authorized chequing (Programme de prélèvement automatique)
A program allowing investors to make periodic or regular investments into a mutual fund through the direct debit of the investor's bank account.
PAR - Pension Adjustment Reversal (Facteur d'équivalence rectifié)
A PAR is an amount that will restore registered retirement savings plan (RRSP) contribution room to an individual. This applies when the individual receives a termination benefit that is less than the individual's total pension adjustments and past service pension adjustments (PSPA).
Par value (Valeur au pair)
The nominal dollar value assigned to a security by the issuer. Also called face value.
Power of Attorney (Procuration)
A legal document that enables an individual to designate another person to act on his/her behalf.
Preferred stock (Actions privilégiées)
A class of shares which provides a fixed dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Usually these shares do not carry voting rights.
Price to earnings ratio (rapport cours/bénéfices)
A common stock's current market price divided by its annual after-tax share earnings.
A legal document that describes in detail the security being offered for sale to the public.
Proxy (Fondé de pouvoir)
A person who holds a document giving him/her the power to act as a substitute.
PSPA - Past Service Pension Adjustment (Facteur d'équivalence pour services passés)
A PSPA arises when a past service event, transaction or circumstance causes a plan member's lifetime retirement benefits for post 1989 years of service to be retroactively improved. It represents the sum of the additional pension credits (value of the benefit that a member earns under a DPSP, or a money purchase or a defined benefit provision of an RPP in a calendar year) that would have been included in the member's pension adjustment if the upgraded benefits had actually been provided, or the additional service actually credited, in the years covered by the past service event.
Qualifying Registered Retirement Income Fund (Fonds enregistré de revenu de retraite admissible)
A Registered Retirement Income Fund (RRIF) that was set up in 1992 or earlier, that has no funds or property transferred or contributed to it in 1993 or later, other than funds or property from another qualifying RRIF; or, that was set up in 1993 or later, with funds or property directly transferred from another qualifying RRIF.
Quebec Securities Commission (Commission des valeurs mobilières du Québec)
The Quebec Securities Commission is the watchdog agency for the Quebec securities market. It was created by order of the Quebec National Assembly in 1955. http://www.cvmq.com/english/index.html
Registered Education Savings Plan (Régime enregistré d'épargne-études)
An RESP is a contract between an individual (other than a trust) who is the subscriber, and a person or organization, who is the promoter. The subscriber (or a person on behalf of the subscriber) makes contributions to the RESP which earn income. In return, the promoter of the plan agrees to pay the income as educational assistance payments to one or more beneficiaries designated in the contract.
Registered Pension Plan - RPP (Régime de pension agréé)
A pension plan may generally be described as an arrangement between an employer and its employees, or between a union and its members, for providing pension benefits to the employees or the union members on retirement. Pension plans are regulated by federal and/or provincial legislation.
Registered Retirement Income Fund - RRIF (Fonds enregistré de revenu de retraite - FERR)
An arrangement between a trust company (or another carrier) and an annuitant under which the trust company (or carrier) agrees to make payments to the annuitant and, if elected by the annuitant, to the annuitant's spouse after the annuitant's death, in consideration for the transfer of property to the trust company (or carrier). The payments must begin no later than the first calendar year after the year in which the RIF is entered into.
Registered Retirement Savings Plan - RRSP (Régime enregistré
d'épargne-retraite - REÉR)
A plan registered with Revenue Canada allowing individuals to save for retirement and defer tax on 18 % of their yearly earned income (to a maximum of $15,500 for the year 2004) by means of contributions. The year the annuitant (individual or spouse) of the plan turns 69 is the last year that contributions can be made to the RRSP. The RRSP is then converted into a RRIF or a LIF.
Relevé 2 See T4RIF
Retained earnings (Bénéfices non répartis, bénéfices non distribués)
Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt.
Retail lending (Prêts aux particuliers)
Lending to private individuals, as opposed to institutions.
Retiring allowance (Allocation de retraite)
It usually is the amount received on or after retirement from an office or employment, in recognition of long service.
Securities and Exchange Commission - SEC (Commission des opérations de bourse US)
The primary US federal regulatory agency for the securities industry, whose responsibility is to promote full disclosure and to protect investors against fraudulent and manipulative practices in the securities markets.
Security (Valeur mobilière)
An investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, government or other organization, which offers evidence of debt or equity.
Segregated funds (Fonds distincts)
A segregated fund policy is an arrangement created by an insurance company, under which investors' returns are based on the return earned by the insurer on a specified group of properties. It is a life insurance product that, from the perspective of an investor, is similar to a mutual fund.
Settlement date (Jour de règlement des opérations)
The date on which a buyer must pay for a purchase or a seller must deliver the sold assets.
Severance package (Indemnité de départ)
A payment made to a terminated employee.
Certificate representing one unit of ownership in a corporation, mutual fund or limited partnership.
Signature guarantee (Certification de signature)
An authentication of a signature in the form of a stamp or seal by a bank, trust company, dealer head office, or another acceptable guarantor.
Silent partner (Bailleur de fonds)
A business partner who provides capital but does not actively participate in the management of operations.
Sinking fund (Fonds d'amortissement)
A fund into which a company sets aside money over time, in order to pay off its preferred stock, bonds, or debentures.
Spousal Retirement Savings Plan (Régime d'Épargne Retraite de conjoint)
A retirement savings plan where the registered planholder is the spouse of the contributor. The contributor receives the tax deduction.
The difference between the rate at which money is deposited in a financial institution and the higher rate at which money is lent out. It is also the difference between the current bid and the current ask (in over-the-counter trading) or offered (in exchange trading) of a given security. More generally it is the difference between any two prices.
Strip bond (Obligation à coupons détachés)
Bond whose two components, interest and repayment of principal, are separated and sold individually as zero-coupon bonds. Strip is the acronym for Separated Trading of Registered Interest and Principal of securities.
Superintendent of Financial Institutions (Inspecteur Général des institutions financières)
Is the primary regulator of federal financial institutions and pension plans. His/her mission is to safeguard policy holders, depositors and pension plan members from undue loss. To obtain information on businesses in Quebec - Tel : (418)528-5703 or fax : (418)643-3625
An exchange transaction.
Switch (Transfert interfonds)
The process of exchanging units of a mutual fund for units of another mutual fund of the same family of funds, usually with the same load type. See also Conversion.
If your spouse dies and you are the sole beneficiary of your spouse's RRSP, then you are permitted to transfer the RRSP to your RRIF on or before December 31 of the year after the year of death. In this instance you will receive two receipts, a T4RSP to report the income inclusion and a contribution receipt for the same amount that will offset the income inclusion.
If you made a withdrawal from your RRIF during the year, you will be issued a T4RIF. It will show the amount withdrawn and the tax that has been withheld. In addition, if you are a resident of Québec, you will receive a Relevé 2. If you are a nonresident, you will receive an NR4 receipt.
Tax wedge Coin fiscal
The tax wedge is the difference between the worker's take-home pay and what it costs to employ him (her). The so-called "tax wedge" therefore corresponds to the tax and social contributions of the employee and employer.
Trade date (Date d'opération)
The date on which the transaction occurs; 1 to 5 days before the settlement date, depending on the type of transaction.
Trading authorization (Autorisation visant les opérations)
Permission given by a customer granting his/her dealer the power of attorney in making trades.
Transfer agent (Agent de transfert)
An agent employed by a corporation or mutual fund company to maintain shareholder records, including purchases, sales, and account balances.
Trust company (Fiducie)
Organization which acts as a fiduciary, trustee, or agent for individuals and businesses in the administration of trust funds, estates, and custodial arrangements.
An individual or organization which holds or manages and invests assets for the benefit of another.
Trustee in bankruptcy (Syndic de faillite)
Court-appointed trustee who will administer the affairs of a bankrupt company or individual.
Venture capital corporation (Société de capital-risque)
An investment company that invests its shareholders' money in startups and other risky but potentially very profitable ventures.
Vesting (Acquisition de droits)
The process in which a right to property passes unconditionally to a particular person. When an employee becomes entitled to eligible pension benefits, which include the employer's contribution, his or her pension is said to be "vested". When pension vesting occurs, pension benefits become "locked-in".
Wholly-owned subsidiary (Filiale en propriété exclusive)
Subsidiary which is owned entirely by its holding company.
Withholding tax - Federal (Retenue d'impôt à la source)
A deduction levied at source of income as advance payment on income tax. For a RRSP, the deduction percentage on withdrawals are as follows :
The annual rate of return on an investment, expressed as a percentage. For bonds and notes, it is the coupon rate divided by the market price. For securities, it is the annual dividends divided by the purchase price.
Zero-coupon bond (Obligation à coupon zéro)
A bond which pays no coupons, is sold at a deep discount to its face value, and matures at its face value.