IFC Chapter 2 - The Canadian Investment Marketplace

What is capital?
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Terms in this set (29)
What are debt instruments?Fixed income securities like bonds, debentures, mortgages, treasury bills and commercial paper.Equity instruments are stocks or shares because the investor owns a share of the company and participates in it's fortunes. There are two types of returns on equity, what are they?dividends and capital gains (or losses)Mutual funds or open-end funds raise capital by doing what?selling shares then reinvesting that capitalWhat are the two most common types of derivatives?options and forwardsIn Canada all exchanges are _______________.electronicWhat is the difference between the primary and the secondary market?Primary market is where enterprises issue stocks or shares and the government issues bonds. IPOs occur in the primary market. Secondary market is where investors trade securities that have already been issued by companies and governments. mutual beneficial price is agreed upon by both parties, not the market price. The issuer does not receive payment this time around as it already received it the first time.What is liquidity?Frequent sales, narrow price spread between bid and ask prices, small fluctuations from sale to saleWhat does the CSE exchange?Securities of emerging companiesWhat are dealer markets?Markets independent of auction markets that consist of a network of dealers who trade with each other. Quantity of transactions in dealer markets significantly outweigh those on auction marketsHow do brokerage firms, securities houses or other investment dealers transfer capital between savers to users?UnderwritingBy April 2020, RBC, TD and BMO ranked within the top _______ banks worldwide in terms of assets.50Caisses populaires and credit unions search for who in particular?member savers from common interest groups often of the same ethnic background, in the same neighbourhood or in the same line of business or social groupProvincial regulators work together to harmonize and coordinate the regulation of the Canadian _______________ through the Canadian Securities Administrators (CSA)Capital marketsWhat does SRO stand for?Self-Regulatory OrganizationIf a SRO rule differs from a provincial rule, which rule is followed?the more stringent oneWhat are two SROs in Canada?The mutual fund dealers association (MDFA)and Investment Industry regulatory organization of Canada IIROCIn Quebec what are the two regulatory agencies?Autorite des marches financiers (AMF) and the Chambre de la securite financiereMDFA is for the ___________________ side of the mutual fund industry. The IIROC oversees _________ investment dealers and trading activity in Canadadistribution; allAll Canadian investment dealers must be a member of what regulatory institution?IIROC