Stocks - Scotiabank

1 Lorem ipsum dolor Sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et dolore magna gubergren, no sea takimata sanctus est Lorem ipsum dolor sit amet. Stocks Stocks Explained Stocks are often bought for their dividends. If a stock doesn t pay dividends, an investor is looking for capital gain instead. 2 Stocks | Scotia iTRADE What Are Stocks ? Stocks Explained When you purchase Stocks , or Equities you become a part owner of the business. This normally entitles you to vote at the shareholders' meeting and allows you to receive any profits that the company allocates to its owners. These profits are referred to as dividends. Many Stocks don t pay a dividend though, so they aren t bought for income.

2 Instead, purchasers hope that they will be able to sell them later for more than they paid, and make what is called a capital gain. Investors and traders should bear in mind that Stocks are volatile - that is, they change in value constantly. And while the opportunity for capital gains is often an attractive one, the potential for capital loss exists as well. Compared to bonds, Stocks can often provide the opportunity for relatively high potential returns. The price for this potential, though, is that you must assume the risk of losing some or all of your investment. Stocks Features There are several reasons to consider owning Stocks . Capital Gains Cash Dividends Payout ratio Dividend yield Stock Dividends Stock Split Voting Rights Limited Liability Liquidity Stocks Investors and traders should bear in mind that Stocks are volatile - that is, they change in value constantly.

3 And while the opportunity for capital gains is often an attractive one, the potential for capital loss exists as well. 3 Stocks | Scotia iTRADE How Stocks Are Priced Stocks can generally be sold at the "bid" price, that is, the highest price at which one can sell stock as determined by the market. And they can generally be bought at an "ask" price, the lowest price at which one can buy the stock as determined by the market. Together, the two prices comprise a stock's "quote." The difference between the two prices is called the "spread." Here is an example of a stock quote for Bank of Nova Scotia: Last The last price the stock traded at on the day in question Change The dollar value and percentage change of the Last price compared to the previous trading day s close Bid If you are selling, the bid is the highest price at which someone is willing to buy from you Bid Size The number of shares currently available for sale displayed in board lots (usually 100 shares)

4 Ask If you are buying, the ask is the lowest price at which someone is willing to sell to you Ask Size The number of shares offered at the ask price displayed in board lots Volume The total number of shares traded so far that day Day Range The lowest price and the highest price the stock has traded at so far that day 4 Stocks | Scotia iTRADE Get a Stock Quote Navigate to Quotes & Research and select Equities . Type the Equity symbol you are interested in, and select Go . The stock quote will show up on top of your Equities Overview Page. A quote can also be found within the trade ticket: Stock Quote The price of a stock as quoted on an exchange.

5 It provides information such as a stock s bid and ask price, the change to the last trading day, as well as volume traded. 5 Stocks | Scotia iTRADE Key Statistics When visiting an Equities Overview page, you also have access to Key Stats 52 Week Range The lowest price and the highest price that the stock has traded at in the last 52 weeks Market Cap The market capitalization of the company, which is the Shares outstanding x the Last price Last Dividend The date the most recent dividend was paid on the stock (if any) and the amount Dividend Yield The annualized dividend expressed as a percentage of the Last trading price The Ex-Dividend Date The date the stock went ex-dividend, which means the date it began to trade without the purchaser being entitled to receive that dividend Shares Outstanding The number of shares that have been authorized, issued and purchased by investors, and are held by them.

6 P/E ratio Probably the most frequently used ratio in all of stock market trading. The number is the quotient obtained by dividing the price by the earnings per share 6 Stocks | Scotia iTRADE Why Can a Quote Be Different from the Execution Price? The market place is a dynamic environment. Prices are always changing as a given stock's supply and demand change. You may, for example get a quote for a stock, then place a market order for that stock, only to be surprised that your order was actually executed for a price other than the one you saw quoted. But in the minutes, or even seconds, between your placing an order and the order execution, the price can change as the supply of, and demand for, the stock rises and falls.

7 Consider using limit order instead of a market order. Research a Stock Scotia iTRADE offers you a suite of tools and resources to research Equities. Navigate to Quotes & Research and select Equities . From here you have access to News Investing Ideas Equities Screener Analyst Research Technical Analysis If you want to learn how to use this area, please join us for our bi-weekly webinar How To Get Started With Scotia iTRADE . 7 Stocks | Scotia iTRADE Invest in Stocks At Scotia iTRADE, we believe investing should be simple. You can invest in Stocks listed on major North American exchanges, and pick from Stocks sold over-the-counter in Canada and the With the Equity trade ticket, you can place buy and sell orders.

8 Depending upon your investment objectives, you can customize your orders by type and timing. Select Account Select Symbol or use magnifying glass to search Select Market Select Order Type, do you want to buy or sell Enter Quantity Select Price Type, Market, Limit, Stop or Stop Limit Order Select Expiry Term, Day or Good-Until-Canceled Order (GTC) up to 30 calendar days For All-or-None Orders, check the box. Learn more Click Preview Order . Check your order carefully before inserting your Access Code and submitting your order 8 Stocks | Scotia iTRADE To learn more about Equities and Equity Tools, join our Webinars or view our Webinars on Demand.

9 Mailing address Scotia iTRADE PO Box 4002 Station A Toronto, ON M5W 0G4 Investor Information Centre 48 Yonge Street (Yonge/Wellington) Toronto, ON, M5E 1G6 Tel: 1-888-769-3723 Email: Scotia iTRADE (Order-Execution Only Accounts) is a division of Scotia Capital Inc. ("SCI"). SCI is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Scotia iTRADE does not provide investment advice or recommendations and investors are responsible for their own investment decisions. Registered trademark of The Bank of Nova Scotia. Used under license. Scotia iTRADE 2014. All Rights Reserved.