Stock definition explanation

What is Stock?
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

Also known as “”shares”” or “”equity””. Read more for examples and further explanation including related video clips and also comments
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Foreclosure – FCL definition explanation

What is Foreclosure – FCL?
A situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract. Read more for examples and further explanation including related video clips and also comments
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Guaranteed Investment (Interest) Certificate – GIC definition explanation

What is Guaranteed Investment (Interest) Certificate – GIC?
A deposit investment security sold by Canadian banks and trust companies. They are often bought for retirement plans because they provide a low-risk fixed rate of return. The principal is at risk only if the bank defaults. Read more for examples and further explanation including related video clips and also comments
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Catastrophic Illness Insurance definition explanation

What is Catastrophic Illness Insurance?
A type of insurance that protects the insured, in the event of specified major health events, during a defined period of time. Catastrophic illness insurance coverage is usually a lump sum, and can be full or partial depending on the condition and the policy. Some conditions covered could include (but not limited to); long-term hospitalization, heart attack, stroke or cancer.

Also known as “”critical illness insurance””. Catastrophic illness insurance can be used to supplement a beneficiary’s existing health and disability coverage. Restrictions are unique to the provider, but typically claims will be rejected due to: pre-existing conditions, not surviving 30 days after diagnosis, and any critical diagnosis within the first 90 days. Read more for examples and further explanation including related video clips and also comments
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Standstill Agreement definition explanation

What is Standstill Agreement?
1. A contract that stalls or stops the process of a hostile takeover. The target firm either offers to repurchase the shares held by the hostile bidder, usually at a large premium, or asks the bidder to limit its holdings. This act will stop the current attack and give the company time to take preventative measures against future takeovers.

2. An agreement between a lender and borrower in which the lender stops demanding the repayment of the loan. A new deal is negotiated, usually altering the loan’s original repayment schedule. This is used as an alternative to bankruptcy or foreclosure when the borrower can’t repay the loan. Read more for examples and further explanation including related video clips and also comments
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Over-The-Counter – OTC definition explanation

What is Over-The-Counter – OTC?
A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase “”over-the-counter”” can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments such as derivatives, which are traded through a dealer network. Read more for examples and further explanation including related video clips and also comments
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Demand Guarantee definition explanation

What is Demand Guarantee?
A type of protection that one party in a transaction can impose on another party in the event that the second party does not perform according to predefined specifications. In the event that the second party does not perform as promised, the first party will receive a predefined amount of compensation by the guarantor, which the second party will be required to repay. Read more for examples and further explanation including related video clips and also comments
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