Glossary: S

Sales charge – In the case of mutual funds, these are commissions charged to holder of fund units, usually based on the purchase or redemption price. Sales charges are also known as “loads.”

Securities Act – Provincial legislation regulating the underwriting, distribution and sale of securities.

Shares – A document signifying part ownership in a company. The terms “share” and “stock” are often used interchangeably.

Shareholders’ equity – The amount of a corporation’s assets belonging to its shareholders (both common and preferred) after allowance for any prior claim.

Simplified prospectus – An abbreviated and simplified prospectus distributed by mutual funds to purchasers and potential purchasers of units or shares (see prospectus).

Specialty fund – A mutual fund that concentrates its investments on a specific industrial or economic sector or a defined geographical area.

Stop-loss – the dollar amount of claims filed for eligible expenses at which the insurance begins to pay at 100% per insured individual. Stop-loss is reached when an insured individual has paid the deductible and reached the out-of-pocket maximum amount of co-insurance.

Systematic withdrawal plan – Plans offered by mutual fund companies that allow unitholders to receive payment from their investment at regular intervals.