Dictionary

S&P EQUITY INDICES	The various indices offered by Standard & Poors are used as benchmarks and comprised of the following: S&P U.S. Indices, S&P Global 1200, S&P 500, the S&P/TSX 60, S&P/TSX 60, S&P Latin America 40, S&P/TOPIX 150, S&P Asia Pacific 100, S&P Europe 350, S&P ADR, S&P Global 100, S&P Australian Indices, S&P Canadian Indices, S&P Hong Kong Indices, S&P Japanese Indices, S&P Italian Indices, S&P Emerging Markets Indices, S&P Non-Equity Indices, S&P Commodity Index, S&P Credit Indices, S&P Hedge Fund Index and S&PJJ Kenny/PERFORM Index. Please refer to the below-noted descriptions of the two main indices used in North America.

S&P/TSX COMPOSITE INDEX (S&P/TSX)	The Index that tracks the performance of approximately 300 large stocks listed on the Toronto Stock Exchange. It is probably the best broad Index of Canadian equities available. The listed companies on the Toronto Stock Exchange represent a broad range of businesses from across Canada, the United States and other countries.

S&P 500 INDEX	A basket of 500 stocks that are widely held in the U.S. The S&P 500 Index is market value weighted and its performance is felt to be a good representation of the U.S. stock market as a whole.

SALES CHARGE	With respect to investment funds, these are commissions that are charged to the holder of the fund units, and are usually based on the purchase or redemption price. Sales charges are also known as "loads."

SALVAGE VALUE	The estimated value of an asset at the end of its useful life.

SAME STORE SALES	Within the retail industry, sales to stores that have been open for greater than a year. This measure provides an investor with the ability to determine the portion of the overall sales growth that was a result of the opening of new stores.

SCHEDULE I BANK	A federally regulated Canadian bank. Under Bill C- 8, implemented on October 24, 2001, Schedule I and II bank structures are replaced with a new sizebased ownership schedule. Under this schedule, banks that have an equity greater than $5 billion are required to be widely held, with no entity owning more than 20% of voting shares or 30% of non-voting shares. Banks with $1 billion to $5 billion in equity are allowed to be closely held, the single requirement is the maintenance of a public float of 35% of voting shares, while banks with less than $1 billion in equity have no ownership restriction other than a fit and proper test.

SCHEDULE II BANK	A federally regulated foreign bank. Under Bill C-8, implemented on October 24, 2001, Schedule I and II bank structures are replaced with a new sizebased ownership schedule. Under this schedule, banks that have an equity greater than $5 billion are required to be widely held, with no entity owning more than 20% of voting shares or 30% of non-voting shares. Banks with $1 billion to $5 billion in equity are allowed to be closely held, the single requirement is the maintenance of a public, float of 35% of voting shares, while banks with less than $1 billion in equity have no ownership restriction other than a fit and proper test.

SCHEDULE III BANK	A federally regulated foreign bank branch that provides lending and full service.

SCM UNIVERSE BOND INDEX	An Index produced by Scotia Capital Markets (SCM) that tracks the total return for all Canadian provincial, municipal, and corporate bond issues that have a maturity over one year.

SEASONAL ADJUSTMENT	A technique used to remove the effect of normal seasonal fluctuations in data in order that the underlying trends become clearer.

SEAT	A term used to represent membership on a stock exchange.

SEC	See Securities and Exchange Commission.

SEC FILING	A document containing financial data that a company delivers to the SEC and subsequently to the investing public.

SECONDARY MARKET	A market where securities are bought and sold after their original issuance that took place in the primary market.

SECONDARY OFFERING	A registered offering of a block of a security previously offered to the public, by a current shareholder. The proceeds of the sale go to the holder of the security and not the issuing company. The number of shares outstanding does not change. It is also called a secondary distribution.

SECTOR ROTATION	The movement of money by one investor, firm or the overall market from one or more sectors into one or more other sectors.

SECURED LOAN	A loan that is backed by collateral.

SECURITIES ACT	Legislation at the provincial level that regulates the underwriting, distribution and sale of securities.

SECURITIES ADMINISTRATOR	A term referring to the regulatory authority of the province (e.g., Securities Commission or Provincial Registrar) that is responsible for administering a provincial Securities Act.

SECURITIES ADVISOR	An individual or firm registered with the applicable securities commissions to advise the public, normally with regard to specific securities, often through publications.

SECURITIES AND EXCHANGE COMMISSION (SEC)	The primary federal U.S. regulatory agency for the securities industry, whose main responsibility is to promote full disclosure and to protect investors against fraud and manipulative practices within the securities markets. A few of the acts that the SEC enforces are the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Company. Act of 1940 and the Investment Advisers Act. The supervision of investment dealers is delegated to the self-regulatory bodies of the exchanges.

SECURITIZATION	Normally refers to the conversion of various sorts of loans into marketable securities, for future sale to investors, by packaging the loans into pools. In a fuller sense, it refers to the development of markets for various debt instruments that permit the ultimate borrower to bypass lending institutions and to borrow directly from lenders.

SECURITY ANALYSIS	The examination and evaluation of the various factors affecting the value of a security.

SECURITY MARKET LINE	The relationship between an investment's hurdle rate and its market risk.

SEDAR	This System for Electronic Document Analysis and Retrieval was developed in Canada for the Canadian Securities Administrators (CSA) to: � facilitate electronic filing of securities information as required by the securities regulatory agencies in Canada � allow for the public dissemination of Canadian securities information collected in the securities filing process; and � provide electronic communication between electronic filers, agents and the Canadian securities regulatory agencies.

SEGREGATION OF SECURITIES	The regulations that require an account that holds customer funds to be kept separate from brokerage firm accounts in order to keep the two clearly distinct in case the brokerage becomes insolvent.

SEGREGATED FUND	A pooled investment fund, similar to a mutual fund, established by a life insurance company and separated from the general capital of the company. The major difference between a segregated fund and a mutual fund is that the former guarantees, irrespective of fund performance, at least a certain minimum percentage of the investor's payments into the fund being returned at maturity.

SEGREGATED PORTFOLIO	A portfolio that holds individual securities as opposed to units in a pooled fund or mutual fund that are all owned by the same individual or organization.

SELF-DEALING	Refers to transactions between a financial institution and individuals who are in positions of influence over, or in control of, the organization.

SELF-DIRECTED RRSP	A type of RRSP whereby the holder invests funds or contributes certain acceptable assets such as individual securities directly into a registered plan. This plan type is usually administered for a fee by a Canadian financial services company.

SELF REGULATORY ORGANIZATION (SRO)	An organization, such as the IDA or an exchange, recognized by the securities administrators as having the necessary powers to develop, implement and enforce industry rules and regulations in order to protect investors and to maintain fair, equitable and ethical practices within the industry.

SENIOR DEBT	Debt that has priority for repayment in the event of a liquidation of the company.

SENTIMENT	A measurement of the mood of a single investor or the market as a whole. Sentiment can either be bullish or bearish.

SEPARATE ACCOUNT	A pooled fund created by an insurance company separated from the general funds maintained by the company for the primary purpose of paying out claims. These accounts have the ability to invest in a variety of securities and funds and often contain retirement funds. Also referred to as a managed or WRAP account.

SETTLEMENT DATE	The date on which a purchaser of a security must pay for their purchase, or a seller of a security must deliver the securities sold. For most securities, settlement must be made prior to or on the third business day following the transaction date. There are proposals being investigated to provide next day settlement.

SHARES	A legal document signifying partial ownership in a company or corporation. The terms "share" and "stock" are often used interchangeably.

SHAREHOLDER	An individual or entity owning shares or stock in a corporation. For corporations, along with ownership comes a right to declared dividends as well as the right to vote on specific company matters, including the Board of Directors. May also be called stockholder.

SHAREHOLDER OF RECORD	The name of an individual or entity that a security issuer carries in its records as the registered holder, and not necessarily the beneficial owner of the issuer's securities. Dividends and any other distributions are paid only to shareholders of record. Shareholder of record may also be called stockholder of record or holder of record or owner of record.

SHARE REPURCHASE PLAN	A purchase program through which a corporation buys back its own outstanding shares in the open market. This is typically an indication that the corporation's management believes that the stock price is undervalued or that there are currently no attractive investment opportunities available for investment.

SHARES AUTHORIZED	The maximum number of shares or stock that a company can legally issue, and which is normally specified within the company's charter, but it can be changed with majority shareholder approval. May also be called authorized shares.

SHARES OUTSTANDING	The shares of a corporation's stock that have been issued and that are in the hands of the public. May also be called outstanding stock.

SHARPE RATIO	A risk-adjusted measure calculated using standard deviation as well as excess return in order to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund's historical risk-adjusted performance and vice versa.

SHELF OFFERING	A registration of a new issue which can be prepared up to two years in advance in order for the issue to be offered quickly as soon as funds are needed by the company or when market conditions are favorable.

SHORT SELLING	The sale of a security made by an investor who does not own the security. Short sales are made by an investor &/or speculator with the expectation of a future decline in the price of the security. This would allow the investor or speculator to then purchase the shares at a lower price, then deliver the securities long, in order to cover the short position.

SHORT STRADDLE	A straddle in which a short position is taken in both a put option and a call option. Another name for short straddle is a bear straddle. It is the opposite of a long straddle.

SHORT-TERM	Usually a time period of one year or less, and is often used to refer to bonds or loans.

SHORT-TERM INTEREST RATE	The interest rate that is applied on money lent for a period of less than three years.

SINGLE DIGIT MIDGET	A company with a stock price below ten dollars per share.

SINKING FUND	A fund into which a company sets aside money over a period of time, in order to retire its preferred stock, bonds or debentures.

SIP & P	See Statement of Investment Policies and Procedures.

SMALL CAP	Usually defined as a company with a capitalization between $250 million to $1 billion in Canada and between $250 million and $2 billion in the U.S.

SOFT DOLLARS	Payments made to a full-service brokerage firm for services rendered in terms of commission revenue, rather than actual cash payments. It is the opposite of hard dollars.

SOFT LANDING	The avoidance of a recession as well as both inflation and high interest rates as an economy slows its growth rate. It is the opposite of hard landing.

SORTINO RATIO	The Sortino Ratio is a risk-adjusted measure of return. It measures the difference between a fund's average return and the benchmark's return divided by the fund�s downside risk. The larger the Sortino Ratio, the greater the return relative to the fund�s downside risk. As a result, a higher number is more desirable than a lower one.

SOVEREIGN MARKET	A market for the debt issued by a government.

SPARE CAPACITY OR EXCESS CAPACITY	An amount of available plant and equipment that is not presently being used. When producers have spare capacity, they normally tend to reduce product prices or minimize price increases in order to boost sales of their products. As a result, the greater the spare capacity, the greater the downward pressure on the inflation rate.

SPDRS	An acronym for the Standard & Poor Depository Receipts (which is a type of derivative). These units mirror the S&P 500 Index and are referred to as "Spiders".

SPECIALTY FUND	A type of investment fund that concentrates its focus on specific industrial or economic sectors or a defined geographic area.

SPECULATOR	One who is prepared to accept calculated risks in the marketplace. Objectives can range from short to medium-term capital gains, as opposed to a conservative investors objective of regular income and safety of principal.

SPLIT ADJUSTED PRICE	The price per share of a stock after it splits. For historical price data, when the stock price in the past is adjusted to reflect any subsequent splits, this allows the data to be compared with current day prices.

SPLIT SHARES	The common shares of one (or more companies) are split into capital shares offering capital gains and growth. The preferred types of shares offer income.

SPOT PRICE	The present spot market delivery price of a specific commodity that may also be called the cash price.

SPOUSAL RRSP	A special type of RRSP where a partner contributes to a plan registered in the beneficiary partner's name. The funds that are contributed belong to the beneficiary but the person making the contribution usually receives the tax deduction. If the beneficiary removes funds from this plan in the year in which the contribution was made or in any of the subsequent two calendar years, the person who made the original contribution must pay taxes on the withdrawn amount.

SPREAD	The gap between the bid and ask prices in the quotation for a security. May also be a term used in option trading.

SRO	See Self-Regulatory Organization.

STAGFLATION	A period of high inflation and high unemployment (stagnation) occurring at the same point in time.

STAGGERING MATURITIES	An investment strategy to take advantage of any interest rate increases by allotting 20% of their total bond portfolio to mature each year.

STANDARD DEVIATION	A statistical measure of the historical volatility of a fund or portfolio. It is usually computed using 36 monthly returns and more generally, is a measure of the extent to which numbers deviate from the average.

STATEMENT OF INVESTMENT POLICIES & PROCEDURES	An agreement between the fund manager and client that outlines the risk controls as well as general parameters governing portfolio management.

STOCK OPTIONS	Rights to purchase a corporation's stock at a specified price and usually for a specified time period.

STRADDLE	Either the purchase or sale of an equal number of put and call options, in the same underlying stock with an equivalent strike price and expiration date.

STRAIGHT LINE DEPRECIATION	A depreciation method whereby the depreciation of an asset assumes that the asset will lose an equal amount of value each year.

STRATEGIC ALLIANCE	An alliance between two or more companies, primarily for the purpose of achieving cost efficiencies. Strategic alliances also increase their competitiveness in the face of rapid changes and pressures in the market.

STREET CERTIFICATE	A stock certificate that is registered in the name of an investment dealer or brokerage firm in order to increase its negotiability, but beneficially owned by someone else.

STREET NAME	Securities that are registered in the name of a broker, instead of the real or beneficial owner.

STRIKE PRICE	The indicated price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlying security or a put option buyer can sell the underlying security. Strike price can also be called exercise price.

STRIP BONDS	These are usually issued by the Central Bank of Canada in Canada or the U.S. Treasury in the U.S. The two components of a strip, interest and repayment of principal, are partitioned and sold separately as zero-coupon bonds. Strip is short for Separate Trading of Registered Interest and Principal of Securities.

STRUCTURAL UNEMPLOYMENT	The amount of unemployment that remains in an economy even when the economy is strong. It can also be known as the natural unemployment rate, the full employment vs. unemployment rate, or the non-accelerating inflation rate of unemployment.

SUBSIDIARY	A company that is legally controlled by a separate other company.

SUBSCRIPTION PRICE	The fixed price at which a new securities issue is offered to the public.

SUBSIDY	An economic benefit granted by a government to producers of goods, often to strengthen their competitive position. The subsidy may be direct as in a cash grant or indirect as in low-interest export credits guaranteed by a government agency.

SUM-OF-THE-YEARS DIGITS METHOD	A depreciation method for an asset, that assumes higher depreciation charges and greater tax benefits in the early years of an asset's life.

SUPERFICIAL LOSS	Also known as a Capital loss is ignored for tax purposes in a situation where the sale of a property triggers a capital loss and the seller (seller�s partner or a corporation) acquires an identical property within 30 days either before or after the sale.

SWAP	An agreement that exchanges one type of return for another. For example switching a fixed for a floating rate of interest.

SWAP RATE	The difference, which may be either positive or negative, between the forward exchange rate and the spot rate for a specific currency.

SWAPTION	An option on a swap, usually an interest rate swap. A payer swaption gives the buyer the right to pay fixed rates and receive floating rates. A receiver swaption gives the buyer the right to receive a fixed rate and pay a floating rate.

SWEETENER	A feature usually included in the terms of a new issue of debt or preferred shares in order to make the issue more attractive to initial investors. Examples of a sweetener include warrants and/or common shares sold with the issue as a unit or a convertible, extendible or retractable feature.

SYNTHETIC PUT	A transaction involving the purchase of a call option on a stock that has already been shorted. If the stock price decreases, and the call is not exercised the investor profits from this trade minus the premium. If the stock price increases, the call is exercised and the investor breaks even minus the premium and short interest.

SYSTEMATIC RISK	Risk that is associated with an entire class of assets or liabilities. Also called market risk.

SYSTEMATIC WITHDRAWAL PLAN	Plans offered by mutual fund companies that allow unitholders to receive payments from their investment at predetermined and regular intervals.