Exam (elaborations)
Canadian Securities Course Exam 1 – Q&A
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Canadian Securities Course Exam 1 – Q&A
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Canadian Securities Course Exam 1 – Q&Ain the money - ✔️ asset is higher than the strike price or lower for put option
Marking to maket - ✔️ the daily settlement of futures gains and losses
intrinsic value - ✔️ Difference between strike price and current market value
of stock.
European style option - ✔️ An option that can be exercised only on the
expiration date
how many shares do i get in 12 call options - ✔️ 1200 1 option is 100
exchange derivative market - ✔️ very regulated, cash settled every day, fairly
standard contracts
OTC Derivatives market - ✔️ less regulated, can be specific for organizations,
settled at the end of the contract
Put Option - ✔️ if you buy a put option you are Putting on the market so you
are buying the option to sell
Role of Investment Dealer - ✔️ Act on behalf of clients as agents
Retail investment Dealer - ✔️ something like PIC or Dominion Securities
Self Directed Brokerage - ✔️ Itrade
Integrated Investment Firm breakdown - ✔️ Front/ middle/ back office- /
sales, trading, marketing/compliance, accounting/ trade settlement
Principal Transaction - ✔️ A transaction in which a broker/dealer either buys
securities from customers and takes them into its own inventory or sells
securities to customers from its inventory.
Agency Transaction - ✔️ A transaction in which a broker-dealer acts for the
accounts of others by buying or selling securities on behalf of customers.
, Schedule 1 bank - ✔️ domestic canadian bank like scotia
schedule 2 bank - ✔️ very similar to schedle 1 bank but dont do all the same
shit example would be AMEX bank of canada
schedule 3 banks - ✔️ These institutions are foreign-owned banks that have
been given permission to conduct business in Canada. They are not
incorporated with the bank act, and operate under restrictions. Examples
include UBS, Deutsche Bank, Barclays, and Capital One.
close end fund - ✔️ shares can only be bought at start up/ secondary market,
typically a fixed number
open end fun - ✔️ mutal fund that has unlimited number of shares
Direct investment - ✔️ buying something physical, a house, building a
highway
Indirect investmetn - ✔️ Buying something representational of money like a
bond
Money Market Instrument - ✔️ any high quality, readily marketable debt
security that will mature in one year or less
Auction Market - ✔️ Like the tsx, no negotiating just auctioning
Dealer Market - ✔️ called over the counter market- there is negotiation
Who is responsible for regulation - ✔️ each province- OSC
Office of the Superintendent of Financial Institutions (OSFI) - ✔️ independant
of gov, regulates fed pension plans, insurance companies, deposits at banks n
credit unions
Canadian Investor Protection Fund (CIPF) - ✔️ A fund that protects eligible
customers in the event of the insolvency of an IIROC dealer member (1M). It is
sponsored solely by IIROC and funded by quarterly assessments on dealer
members.
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