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Glossary

Asset: Item or amount of money belonging to a natural person.
Balanced fund: Mutual fund that invests in stocks, fixed-income securities and money market instruments to reduce risk and make a moderate long-term profit.
Benefit: Amount paid to a person under the coverage of an insurance policy to compensate for what he or she has lost.
Bond: A certificate of debt given by a public organization or company to those who lend it money and that guarantees the bondholders an annual interest.
Bond fund: Mutual fund that invests mainly in bonds to generate a higher potential income.
Budget: Complete list of all the estimated spending and income of a business or an individual.
Capital: Amount of money that you have available to spend or invest.
Capital gains: Profit from the sale of capital assets (i.e., long-term assets such as stocks, bonds, land or businesses).
Capital guaranteed: Option in the investment agreement you make with your caisse. If you choose a capital guaranteed investment, the caisse guarantees that the initial amount you invest will be protected from market risk.
Capital invested: Amount of money invested in an investment vehicle or in an asset.
Certified cheque: Cheque containing certification that the funds have already been withdrawn from the account of the person who issued the cheque and that these funds will be blocked until the recipient deposits the cheque. Guaranteed in the event of theft, loss or destruction.
Cheque image return: Option that lets members receive the original cheques debited from their account or view the front and back of each of these cheques online.
Cheque issuing charges: Fees charged by your financial institution when you write a cheque.
Closed mortgage: A closed mortgage lets you choose a term from 6 months to 10 years, which offers the security of a fixed rate for a longer term. The interest rate is lower than that of an open mortgage. You can make advanced payments.
Compound return: Annual rate of return earned on an investment in which dividends, interest and capital gains are reinvested at the same annual rate of return.
Contribute: To make a payment into a retirement plan.
Coverage: Protection offered by an insurance policy in exchange for the payment of premiums.
Credit: Money loaned to an individual to carry out a project, make a purchase or cover unexpected expenses.
Credit bureau: Information centre on consumer credit use.
Credit card: Plastic card issued by a credit company (e.g., VISA) that you can use to make purchases on credit and pay for them at a later date.
Credit card balance: Amount you must pay to reimburse the purchases you charged to your credit card.
Credit limit: Maximum amount you can charge to your credit card.
Credit rating: Record of your financial reputation, in particular your ability to repay loans, published by a credit bureau. Financial institutions use your credit rating to assess the risk of lending you money.
Debit card: Plastic card that you can use to carry out transactions online or at an ATM or to pay for purchases in a store.
Direct payment: Electronic payment made with a debit card at a terminal that immediately removes the purchase amount from your account.
Direct withdrawal: Function you can set up to automatically pay your regular bills.
Diversification: Investment strategy that decreases the risks of investing by dividing the funds into a variety of investment vehicles.
Diversified fund: Mutual fund that invests in a variety of asset classes (stocks, bonds, monetary instruments).
Dividends: Part of the earnings of a company that is paid to its shareholders, who receive an amount in proportion with the number of shares they hold.
Draft: Payment method that ensures the recipient a precise amount on a determined date. Guaranteed in the event of theft, loss or destruction. Ideal for amounts in foreign currencies. Also referred to as "letter of exchange"
Equity fund: Mutual fund that invests mainly in stocks.
Fixed rate: The fixed rate remains stable until the end of the term. You to know what the credit charges and due date of your loan are right away. It can apply to both open and closed mortgages.
Fixed-interest security: Type of investment for which the rate of return is known in advance.
Group insurance plan: Insurance plan that covers several people from the same business or organization.
Growth stock: Type of investment that is expected to gain value quickly, but for which there is no guaranteed rate of return.
Index fund: Mutual fund that invests in the same securities (stocks or bonds) as a given reference index with the goal of mirroring the performance of the index.
Insurance premium: Amount that an insurance policy holder must pay to the insurer in exchange for financial protection in case of loss of life, health or property.
Interest: Fee you are charged for borrowing money from a financial institution (expressed as a percentage of the amount borrowed).
Interest rate: Amount charged or paid for the use of money, expressed as a percentage. Investors receive interest for letting others use their money and borrowers pay interest to borrow money.
Investment: Amount of money invested to generate profit.
Investment fund: Fund in which investors with similar goals pool their money together. This money is invested by professionals who manage the fund.
Investment fund share: Share in a group investment in which investors pool their money together to generate profit.
Investment vehicle: Any financial product (RRSP, term savings, investment fund, etc.) that allows you to invest an amount of money and make it grow.
Investor profile: Personality or type of investor (e.g., prudent, ambitious) determined by an individual's circumstances and risk tolerance.
Line of credit: Amount of money determined by a financial institution that you can use in exchange for paying interest fees.
Liquid assets: Money immediately accessible or assets that can be quickly and easily converted to cash.
Loan: Amount of money lent for a predetermined period of time.
Market-linked guaranteed investment: Type of investment that poses no risk to your capital and has a higher return potential.
Money order: Guaranteed payment method that ensures the recipient a precise amount on a determined date. Ideal for amounts of less than $1,000.
NSF: Not sufficient funds. This charge occurs when you write a cheque for an amount that is more than the amount in your account.
Net asset value: Current dollar value per share of your investment.
Open mortgage: An open mortgage is short-term and can be paid back at any time, in whole or in part, without penalties. Because the interest rate is generally higher than the rate of a closed mortgage for the same term, it's good if you're expecting to repay a significant portion of your mortgage soon.
RRSP: (Registered Retirement Savings Plan) Savings method that allows you to put savings in tax-sheltered investments during your active life to supplement your income when you retire. Your RRSP savings will not be taxed until you withdraw them.
Regular instalment: Amount withdrawn regularly from an account and automatically placed in a savings account or an investment or used to pay off a loan.
Retirement savings: Amount of money saved to cover the cost of your living expenses when you retire.
Return: Amount of interest or dividends received from an investment in a given period of time.
Risk tolerance: Ability to handle a decrease in the value of your investments for a certain period.
Sector fund: Mutual fund that invests mainly in a single sector of the economy.
Security: Document that certifies the value of a stock or a bond to its holder.
Service charges: Fees you pay for using the services of your financial institution.
Synonym : user fees, transaction fees.
Shares: Part ownership of the capital of a business or company.
Specialized fund: Mutual fund that invests mainly in socially responsible, sector or parallel investments.
Stock market: System in which investments such as company stocks and securities are traded through capital markets (e.g., New York Stock Exchange).
Tax-sheltered: You will not have to pay income taxes on money you invest in a tax-sheltered investment (e.g., RRSP) until you withdraw the funds.
Taxes: A fee charged by the government on your income or on products you buy. Taxes finance government expenditures like public goods and services.
Variable rate: The variable rate fluctuates with the Caisse centrale Desjardins prime rate during your mortgage term. This allows you to benefit from possible rate decreases and, consequently, pay back your mortgage sooner. Your payments remain the same, even if the rates fluctuate; only the amortization period (number of years necessary to pay back your loan) varies based on rate fluctuations.
grams of CO2 equivalent: Carbon dioxide equivalent (CO2e): Unit that provides an equivalency, in terms of global warming potential, between the various greenhouse gasses and carbon dioxide (CO2), making it possible to assess the overall greenhouse gas effect caused by different kinds of emissions.