CSC Questions and Answers
capital
wealth in the form of material things such as land and buildings, and representational things like money stocks and bonds
debt instrument
issuer promises to repay loan at maturity and makes interest payments. Bonds, Debentures, Mortgages, Treasury Bills a...
CSC Questions and Answers
capital - answer wealth in the form of material things such as land and buildings, and
representational things like money stocks and bonds
debt instrument - answer issuer promises to repay loan at maturity and makes
interest payments. Bonds, Debentures, Mortgages, Treasury Bills and Commercial
Paper.
equity instruments - answer ownership stake in a company ex. common share, and
preferred shares
primary market - answer the market in which new securities are originally sold to
investors for the first time
secondary market - answer investors trade securities that have already been issued
by companies and governments
auction market - answer buyers enter bids and sellers enter offers. the price that a
stock is traded at represents the highest price the buyer is willing to pay and the lowest
price the seller will accept.
bid - answer highest price a buyer is willing to pay
offer (or ask) - answer lowest price a seller will accept
spread - answer difference between the ask and the bid
TSX - answer Toronto Stock Exchange.
lists senior equities, some debt instruments that are convertible into a listed equity,
income trusts and ETFs
ETF - answer Excange-Traded Funds
TSX Venture Exchange - answer Canada's public venture marketplace, the result of
the merger of the Vancouver and Alberta Stock Exchanges in 1999. Trades junior
securities and a few debenture issues.
CNSX - answer Canadian National Stock Exchange
Trades securities of emerging companies.
ICE Futures Canada - answer trades agricultural futures and options
,Montreal Exchange - answer MX, which is owned by the TMX group INC, trades all
financial and equity futures and options
dealer markets - answer consist of a network of dealers who trade with each other
usually over the phone or internet. all bonds and debentures are sold through dealer
markets
debenture - answer interest-bearing bond, voucher of indebtedness
CUB - answer Canadian Unlisted Board offers an web-based system for dealers to
report completed trades in unlisted and unquoted equity securities in Ontario.
QTRS - answer Quotation and Trade Reporting Systems.
Recognized stock markets that operate in a
similar manner to exchanges and provide
facilities to users to post quotations and
report trades.
ATS - answer Alternative Trading Systems - privately owned computerized trading
facilities that match buy and sell orders for securities traded outside of recognized
exchanges. Can be owned by individual brokerage firms or by groups of brokerage
firms.
CanDeal - answer joint venture between Canada's 6 largest investment dealers,
operated by TMX group. Is recognized as both an ATS and an investment dealer. Offers
access to government securities and money market instruments.
CBID - answer member of IIROC. is an ATS that operates 2 distinct fixed-income
marketplaces: retail and institutional
CANPX - answer that provides investors with real-time bid and offer prices.
characteristics of capital - answer Mobile, Sensitive to its environment and Scarce
closed-end funds - answer -issue a limited number of shares
-NAV is determined by supply/demand (changes momentarily)
SRO - answer Self Regulatory Organization. Establishes and enforces industry
regulations to protect investors and to maintain fair, equitable and ethical practices.
NAV - answer Net Asset Value
CIPF - answer Canadian Investor Protection Fund - provides insurance against
insolvency while provincial regulaators oversee the markets and the SROS
, IIROC - answer investment industry regulatory organization of canada - 201 firms at
the end of 2011
roles of investment dealerz - answer 1. help transfer capital from savers to users
through the underwriting and distribution of new securities
2. maintain secondary markets in which previously issued or outstanding securiites can
be traded
expansion of chartered bank assets - answer -greater international activity
-changes in BANK ACT permitting banks to compete vigorously in new sectors of the
financial services industry
-creation of more banks, most notably foreign-owned Sched. 2 and 3 banks
-purchase of many major trust companies by banks
integrated firms - answer full participation in both institutional and retail markets.
underwrite all types of federal provincial municipal and corporate debt
arbitrage - answer a kind of hedged investment meant to capture slight differences in
price
retail firms - answer smaller banks that devote their credit portfolios to smaller-
denomination personal cash loans and home mortgage loans extended to individuals,
families, and small businesses
acting as principal - answer securities firm owns securities as part of its own
inventory at some stage in its buying and selling transactions with investors. buying and
selling prices is the DEALERS GROSS PROFIT OR LOSS
acting as agent - answer broker act sfor or on behalf of a buyer or seller but does not
itself own title to the to the securities at ANY time during the transactions. the broker's
profit is the agent's commission charged for each transaction
underwriting - answer purchase from a government body or a company of a new
issue of securities on a given date at a specified price. dealer act as PRINCIPALS.
broker - answer an agent in the secondary securities transaction. the clients are the
ones buying and selling.
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