Canadian Securities Course Questions Answered Correctly Latest Update 2024 (Rated A+)
Agent - Answers An investment dealer operates in this function when it acts on behalf of a buyer or a seller of a security and does not itself own title to the securities at any time during the transactions.
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Agent - Answers An investment dealer operates in this function when it acts on behalf of a buyer or a
seller of a security and does not itself own title to the securities at any time during the transactions.
Broker - Answers An investment dealer or a duly registered individual that is registered to trade in
securities in the capacity of an agent or principal and is a member of the Canadian Investment
Regulatory Organization (CIRO)
Canadian Investment Regulatory Organization (CIRO) - Answers A self-regulatory organization (SRO) that
oversees all investment dealers, mutual fund dealers, and trading activity on Canada's debt, equity, and
mutual fund marketplaces. They establish and enforce industry regulations that protect investors and
maintain fair, equitable, and ethical practices
Capital Markets - Answers Fincancial markets where debt and equity securities trade. These include
organized exchanges as well as private placement sources of debt and equity
CDS Clearing and Depository Services Inc. - Answers Provides customers with physical and electronic
facilities to deposit and withdraw depository-eligible securities and manage their related ledger
positions (securities accounts). This also provides electronic clearing services both domestically and
internationally, allowing customers to report, confirm and settle securities trade transactions.
Clearing - Answers The process of confirming and matching security trade deals.
Closed-end Fund - Answers Shares in these investment companies are readily transferable in the open
market and are bought and sold like other shares. Capitalization is fixed.
Consumer finance company - Answers Makes direct cash loans to consumers, who usually are unable to
secure a loan from a bank. They typically charge a higher interest rate than banks.
Discount broker - Answers Brokerage house that buys and sells securities for clients at a greater
commission discount than full-service firms. Also known as self-directed brokers
Financial intermediary - Answers An institution such as a bank, life insurance company, credit union or
mutual fund which receives cash, which it invests, from suppliers of capital.
Fintech - Answers Financial technology companies that take advantage of computer technology to
provide more efficient financial products and services
Firewall - Answers Policies implemented to separate and isolate persons within a firm who make
investment decisions from persons within a firm who are privy to undisclosed material information
which may influence those decisions
, Integrated firm - Answers Investment dealer that offers products and services that cover all aspects of
the industry, including full participation in both the institutional and the retail markets.
Investment dealer - Answers A person or company that engages in the business of trading in securities in
the capacity of an agent or principal and is a member of CIRO
Investment fund - Answers A fund or company that sells units or shares and invests the proceeds in a
portfolio of securities. There are two principal types: closed-end and open-end or mutual fund. Shares in
closed-end investment companies are readily transferable in the open market and are bought and sold
like other shares. Capitalization is fixed. Open-end funds sell their own new shares to investors, buy back
their old shares, and are not listed. Open-end funds are so-called because their capitalization is not
fixed; they normally issue more shares or units as people want them.
Investment Industry Association of Canada - Answers A member-based professional association that
represents the interests of market participants.
Mutual fund - Answers An investment fund operated by a company that uses the proceeds from shares
and units sold to investors to invest in stocks, bonds, derivatives, and other financial securities. These
offer investors the advantages of diversification and professional management and are sold on a load or
no-load basis. Their shares/units are redeemable on demand at the fund's current net asset value per
share (NAVPS)
Open-end fund - Answers See mutual fund
Pension fund - Answers A pool of assets managed with the goal of supplying its beneficiaries with
income during their retirement years.
Primary market distribution - Answers The issuance of securities in the primary market
Principal - Answers The person for whom a broker executes an order, or a dealer buying or selling for its
own account. The term may also refer to a person's capital or the face amount of a bond.
Retail firm - Answers Investment dealers that serve only retail clients. They include full-service and
discount brokers. Full-service firms offer a wide variety of products and services for the retail investor.
Discount brokers execute trades for retail clients at a reduced rate, but do not provide investment
advice.
Robo-advisor - Answers An online investment service that provides clients with automated investment
advice.
Sales finance company - Answers Purchases, at a discount, installment sales contracts from retailers and
dealers when such items as new cars and appliances are bought on installment plans.
Savings bank - Answers A financial institution whose main role is to accept savings deposits and pay
interest on those deposits. Usually set up by a government and is similar in function to a credit union.
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