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Glossary

CAD

Symbol for Canadian Dollar.

Call

A type of option which gives the owner the right, but not the obligation, to buy an asset at a predetermined price within a specific time period.

Call Spread

A strategy constructed when an equal number of call options are bought and sold at the same time.

Callable Bond

A type of bond that permits the issuer the right to redeem the bond prior to maturity.

Candlestick Chart

A different price chart format display of the high, low, open and closing prices which resemble candlesticks — wide vertical bars with thin lines that extend above and below.

Capital Gain

The profit that results from the sale of a capital asset where the selling price exceeds the purchase price.

Capital Loss

The opposite of Capital Gain — the amount that a capital asset selling price is below it’s purchase price.

Capitalization

Total monetary value of all stocks and bonds issued by a corporation.

Capitulation

The act of selling a security at a loss for the purpose of moving the proceeds of the sale to less rusky investments.