Capital gain: Money earned in an equity investment
Capital loss: Money lost in an equity investment
Debt investment: An investment that involves lending money to a company
Equity investnent: An investment that involves part ownership in a company
Canada Deposit Insurance Corporation: A corporation that offers protection for certain investments in Canadian financial institutions
Face value: Value at the maturity date
Maturity date: The date on which you can redeem your GIC, bond, or T-bill without penalty
Term: Length of an investment
The Rule of 72: To quickly estimate the length of time it takes for an investment to double in value, divide 72 by the interest rate (as a number, not a percentage) to find the time in years. For example, if the interest is 10%, divide 72 by 10. It would take 7.2 years.
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