Tax
credit:
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An
income tax credit that directly reduces the amount of
income tax paid by offsetting other income tax liabilities.
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Tax deduction:
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A reduction of total income before the amount of income
tax payable is calculated.
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Tax-deferred
annuity:
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A tax-deferred annuity is a type of investment that
guarantees payment of specific amounts of money at specific
times, or a single lump sum payment. It also allows
for the postponement (but not eliminate) taxes on earnings.
You only pay tax when you receive money from the annuity.
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Tax-Deferred
savings:
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An
RRSP is an example of a tax-deferred savings plan (but
don't eliminate). Unlike taxable savings, the taxes
on the interest, dividends and capital gains of the
tax-deferred savings are postponed until you cash them
in or draw income from converting the RRSP into an RIF
or other type of income withdrawal plan.
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Taxable
benefit:
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An
employee benefit paid for by an employer, on which the
employee is taxed.
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Taxable
income:
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Includes
income from all sources, before deduction.
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Tax
shelter:
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A
form of investment that in some legal manner reduces
or defers the taxes an investor must pay.
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Technical
analysis:
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A
form of investment research that focuses on information
and events in the marketplace itself, generally without
reference to the fundamental underlying the issuers
of the securities traded in the market. Hence, a stock
market technician might look at stock prices and trading
volumes in an effort to determine where prices were
going in the future.
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Tenant:
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The
holder of a leasehold estate (also called a lessee)
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Tenants
in common:
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Two or more people who own the same piece of property,
with the inherent condition that if one of the tenants
die, his interest automatically passes on to his heirs.
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Term
bonds:
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A bond issue in which all bonds mature at he same time.
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Term
insurance:
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Life insurance which pays if death occurs within a stated
period of time. There is not usually a cash value under
a term insurance policy.
This
is a life insurance pure and simple. You choose the
number of years (the term) you are insured and the amount
your survivors get if you die within that term. The
term you choose can be for a given number of years,
for example 10 or 20, or up to a certain age, for example
65 or 100. The main features of term-to-100 policy are:
1. Fixed premiums, 2. Fixed death benefits, 3. No cash
value.
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Term
loan:
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Loan extended by a bank for more than the normal 90-day
period. A term loan might run 5 years or more.
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Term
to 90 annuity:
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An
annuity that pays a fixed amount each year until it
is exhausted in the year that the annuitant turns 90.
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Term
(Real estate):
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The
length of time which a mortgage agreement covers. Payments
made may not fully repay the outstanding principal by
the end of the term because the amortization period
is longer.
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Term
or Time deposit:
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Interest-bearing deposit at a savings institution that
has a specific maturity.
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Testamentary
trust:
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A
trust created under the terms of a will and takes effect
on the death of the testator.
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Testator:
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The
person who is making a will in their own name.
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Ticker
symbol:
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A
ticker symbol is a combination of letters that identifies
a stock-exchange security. Often, it is the truncated
or abbreviated name of the company or group issuing
the security. For example BCE stands for (Bell Canada
Enterprises) and DJ30 stands for (Dow Jones 30).
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Timing
the market:
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The method investing by timing market highs ("sell"
points) and market lows ("buy" points).
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Time
value of money:
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Because money invested in a security or deposited in
a savings account will earn income over time, there
is a value placed on the use of money for any given
period. This value is represented, for example, by the
rate of interest paid on a savings account. This concept
is central to much of investment valuation theory, particularly
as regards debt instruments.
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Time-weighted
return (TWR):
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A time-weighted return is a measure of the performance
(income and price changes) of investments independent
of the amount of money invested. Because the TWR is
expressed as a percent gain or loss, it's makes for
a easy comparison with other percent changes for the
same time period.
By
annualizing the TWR and expressing it as an interest
rates that you can easily compare it with other interest
rates for the same time period.
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Title:
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A document that gives evidence of an individual's ownership
of property.
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Title
search:
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An
examination of municipal records to determine the legal
ownership of property.
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Total
debt ratio (TDS) (Real Estate):
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The
percentage of gross annual income required to cover
payments associated with housing and all other debts
and obligations, such as payments on a car loan.
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Top-Down:
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A
management style that begins with an assessment of the
overall economic environment and makes a general asset
allocation decision regarding the financial markets
and various industry sectors. The top- down manager
selects a portfolio of individual securities within
the favored sector. (See bottom-up)
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Trade
balance:
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The
value of exports minus the value of imports.
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Trade
date:
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The date on which a transaction is initiated. The settlement
date may be in the trade date or a later date.
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Treasury
bill:
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A non interest-bearing discount security issued by the
Canadian Treasury to finance the national debt. Most
bills are issued to mature in 3 months, 6 months, or
1 year.
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True
savings account:
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An account at a bank, trust company, loan association
or credit union on which interest is paid, but provides
no checking privileges.
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Trust
company:
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A
company formed under The Loan and Trust Act and operates
as a private intermediary and also acts as a deposit-accepting
institution which also makes loans.
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Trust
officer:
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A person who works in the estate planning department
of a trust company.
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Trustee:
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A person who administers assets held in trust for another
person.
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Trust:
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A
bequest or device which puts legal title and control
of property in the hands of a party (trustee) for the
benefit of another party (beneficiary).
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Tuition
tax credit :
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A non-refundable credit for tuition fees paid to a university,
college or other institution where post-secondary level
courses are offered.
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TSE
Index:
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(TSE
35) TORONTO 35 INDEX
An index of 35 liquid Canadian stocks, including stocks
from most subgroups, but excluding Real Estate &
Construction.
(TSE
100) TORONTO 100 INDEX
An index of the top 100 companies in the Toronto 300
Index, ranked by quoted market value.
(TSE
300) TORONTO 300 INDEX
An
index of 300 Canadian stocks, in fourteen subgroups,
designed to represent the Canadian equity market.
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This Glossary
of financial terms was created by Fiscal Agents Financial
Information Services, Research Department. All rights
reserved. No part of this publication may be reproduced,
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