Alternative Investment Market (AIM)
Junior arm of the London Stock Exchange (LSE), providing a global market for smaller, growing companies.

Assets under administration (AUA)
AUA is the market value of client assets administered by Canaccord, for which Canaccord earns commissions or fees. This measure includes funds held in client accounts, as well as the aggregate market value of long and short security positions. Management uses this measure to assess operational performance of the Private Client Services business segment. This measure is non-GAAP.

Assets under management (AUM)
AUM are assets that are beneficially owned by clients and discretionarily managed by Canaccord as part of our Alliance Program and Private Investment Management platform. Services provided include the selection of investments and the provision of investment advice. AUM is also administered by Canaccord and is therefore included in AUA. This measure is non-GAAP.

Book value per common share
Per share common equity calculated by subtracting liabilities from assets and dividing by outstanding number of shares. This measure is non-GAAP.

Capital employed
A non-GAAP measure of capital: the aggregate of share capital, retained earnings and accumulated other comprehensive income.

Common equity
Also referred to as common shares, are, as the name implies, the most usual and commonly held form of stock in a corporation. Dividends paid to the stockholders must be paid to preferred shares before being paid to common
stock shareholders.

Correspondent brokerage services
The provision of secure administrative, trade execution and research services to other brokerage firms through the Company’s existing technology and operations infrastructure (Pinnacle).

Dilution
The change in earnings and book value per share resulting from the exercise of all warrants and options and conversion of convertible securities.

Dividend yield
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. It is calculated as total annual dividends per share divided by the company share price.

Earnings per share (EPS), diluted
Net income divided by the average number of shares outstanding adjusted for the dilutive effects of stock options and other convertible securities.

Employee Stock Purchase Plan (ESPP)
Voluntary plan that provides eligible employees with the ability to purchase shares in the Company through payroll deductions, with an additional contribution by the Company.

Escrowed securities
Common shares in the Company issued prior to the IPO, which are subject to specific terms of release.

Fixed income trading
Trading in new issues, government and corporate bonds, treasury bills, commercial paper, strip bonds, high yield debt and convertible debentures.

Institutional sales and trading
A capital markets business segment providing market information and research, advice and trade execution to institutional clients.

International Financial Centre Vancouver
Membership provides certain tax and financial benefits, reducing the overall corporate tax rate, pursuant to British Columbia legislation.

International trading
Executing trades in Canadian securities on behalf of US brokerage firms.

Investment banking
Assisting public and private businesses and governments to obtain financing in the capital markets through the issuance of debt, equity and derivative securities on either an underwritten or an agency basis.

Initial Public Offering (IPO)
An IPO is the first sale of stock by a private company to the public.

Liquidity
The total of cash and cash equivalents available to the Company as capital for operating and regulatory purposes.

London Stock Exchange (LSE)
One of the world’s largest stock exchanges; it has been in existence for more than 300 years and has over 3,200 listed companies. The exchange has four main sectors: The Main Market; The AIM market; The Professional Securities Market; and The Specialist Fund Market.

Long Term Incentive Plan (LTIP)
A reward system designed to align employee and external shareholder interests. Under Canaccord’s LTIP, a portion of an eligible employee’s annual compensation is held back to purchase Restricted Share Units (RSUs) of the Company. The RSUs are topped up by the firm and vest over three years.

National Health Insurance (NHI) tax
Payroll tax applicable to UK employees based on percentage of incentive compensation payout.

Nominated Adviser (Nomad)
A company approved by the LSE to act as an adviser for companies who wish to be admitted to AIM. A Nomad warrants to the LSE that the company is appropriate for admission and assists the listed company on an ongoing basis with disclosure and other market related matters.

Normal course issuer bid (NCIB)
A repurchase of the Company’s own shares through a stock exchange, subject to various rules of the relevant exchange and securities commission.

Principal trading
Trading in equity securities in principal and inventory accounts. Revenue is generated through inventory trading gains and losses.

Registered trading
Trading in equity securities in principal and inventory accounts by registered traders who operate by taking positions, trading and making markets in equity securities including securities of companies with small to medium sized market capitalizations. Revenue is generated through inventory trading gains and losses.

Return on average capital employed (ROCE)
A historical measure of capital in the business involving elements other than common equity. Replaced by ROE. This was used prior to Canaccord’s IPO.

Return on average common equity (ROE)
Net income expressed as a percentage of average common equity. This measure is non-GAAP.

Risk
Financial institutions face a number of risks that may expose them to losses, including market, credit, operational, regulatory and legal risk.

Separately managed accounts (SMAs)
Client accounts in which securities are individually owned rather than held through a pooled fund. Managed by both internal and external senior portfolio managers.

Syndicate participation
A group of investment banking firms coordinating the marketing, distribution, pricing and stabilization of equity financing transactions.

Trading services
Quotation services, trade reconciliation, execution management, order book management and trade reporting.

Underwriter – investment banking
Purchases securities or other instruments from a corporate issuer for resale to investors.

Value at Risk (VaR)
VaR is a generally accepted risk measurement concept that is defined as the predicted worst-case loss in market value of a portfolio at a specific confidence level (e.g., 95%) over a certain period of time (e.g., daily).

Wrap accounts
A type of brokerage account where a single or flat fee covers all administrative, research, advisory and management expenses.