Canadian Securities Course Questions Answered Correctly Latest Update 2024 (Rated A+)

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. 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 Institutional firm - Answers Investment dealer that serves institutional clients exclusively 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. Schedule I bank - Answers Canadian-owned banks. The largest 6 banks in Canada out-distance the asset-size of other Canadian-owned banks. Regulated by the Bank Act. Schedule II bank - Answers Banks that are incorporated and operate in Canada as federally regulated foreign bank subsidiaries. Regulated by the Bank Act. Schedule III bank - Answers Banks that are federally regulated foreign bank branches of foreign institutions that have been authorized under the Bank Act to do banking business in Canada. Self-directed broker - Answers Also known as discount brokers. They offer discounted transaction costs and do not provide investment advice to investors. Settlement - Answers The moment of irrevocable exchange of cash and securities Alternative Trading System (ATS) - Answers Privately-owned computerized networks that match orders for securities outside of recognized exchange facilities. Also referred to as Proprietary Electronic Trading Systems (PETS) Ask Price - Answers The lowest price a seller will accept for the financial instrument being quoted Auction market - Answers Market in which securities are bought and sold by brokers acting as agents for their clients, in contrast to a dealer market where trades are conducted over-the-counter. For example, the Toronto Stock Exchange is this type of market. Bid-ask spread - Answers The difference between the current bid and ask, calculated as Ask - Bid Bid price - Answers The highest price a buyer is willing to pay for the financial instrument being quoted Bourse de Montreal - Answers A stock exchange (also referred to as the Montreal Exchange) that deals exclusively with non-agricultural options and futures in Canada, including all options that previously traded on the Toronto Stock Exchange and all futures products that previously traded on the Toronto Futures Exchange. Canadian Securities Exchange (CSE) - Answers Lauched in 2003 as an alternative marketplace for trading equity securities and emerging companies Canadian Unlisted Board Inc. - Answers An Internet web-besed system for investment dealers to report completed trades in unlisted and unquoted equity securities in Ontario. CanDeal - Answers Provides institutional investors with electronic access to federal bond bid and offer prices and yields from its six bank-owned dealers CanPX - Answers A joint venture of several CIRO member firms and operates as an electronic trading system for fixed income securities providing investors with real-time bid and offer prices and hourly trade data Capital - Answers Has two distinct but related meanings. To an economist, it means machinery, factories and inventory required to produce other products. To an investor, it may mean the total of financial assets invested in securities, a home and other fixed assets, plus cash CBID - Answers An electronic trading system for fixed-income securities operating in the retail market CBID Institutional - Answers An electronic trading system for fixed-income securities operating in the institutional market Common share - Answers Securities representing ownership in a company. They carry voting privileges and are entitled to the receipt of dividends, if declared. Also called common stock. Dealer market - Answers A market in which securities are bought and sold over-the-counter in which dealers act as principals when buying and selling securities for clients. Also referred to as the unlisted market Equity securities - Answers Evidence of a share of ownership stake in the company that issued the security ICE NGX Canada - Answers A natural gas exchange, headquartered in Calgary, Alberta that provides electronic trading, central counterparty clearing and data services to the North American natural gas and electricity markets Institutional Investor - Answers Organizations, such as pension and mutual fund companies, that trade in large-share quantities or dollar amounts. They typically have a steady flow of money to invest. Investment Advisor (IA) - Answers An individual licensed to transact in the full range of securities. They must be registered by the securities commission of the province in which he or she works. The term refers to employees of SRO member firms only. Also knwon as a Registrant or Registered Representative (RR) Last price - Answers The price at which the last trade on a stock occurred. Liquidity - Answers The ability of the market in a particular security to absorb a reasonable amount of buying or selling at reasonable price changes. OR A corporation's current assets relative to its current liabilities; its cash position. MarketAxess - Answers Provides market data and a trading platform with access to multi-dealer competitive pricing for a wider range of corporate bonds and other types of fixed-income instruments. They are a member of the CIRO Market maker - Answers A trader employed by a securities firm who is authorized and required, by the applicable SRO, to maintain resonable liquidity in securities markets by making firm bids or offers for one or more designated securities Money market - Answers That part of the capital market in which short-term financial obligations are bought and sold. These include treasury bills and other federal government securities, and commercial paper, and bankers' acceptances and other instruments with one year or less left to maturity. Longer term securities, when their term shortens to the limits mentioned, are also traded in this. NEO Exchange - Answers An exchange that provides listing services and facilitates trading in securities listed on the NEO Exchange, TSX, and the TSX Venture Exchange Over-the-counter market - Answers A market for securities made up of securities dealers who may or may not be members of a recognized stock exchange. This is mainly a market conducted over the telephone. Also called the unlisted, inter-dealer or street market. NASDAQ is an example of this. Preferred share - Answers A class of share capital that entitles the owners to a fixed dividend ahead of the company's common shares and to a stated dollar value per share in the event of liquidation. Usually do not have voting rights unless a stated number of dividends have been omitted. Also referred to as preference shares. Primary market - Answers The market for new issues of securities. The proceeds of the sale of securities in this go directly to the company issuing the securities Retail investor - Answers Individual investors who buy and sell seurities for their own personal accounts, and not for another company or organization. They generally buy in smaller quantities than larger institutional investors Secondary market - Answers The market where securities are traded through an exchange or over-the-counter subsequent to a primary offering. The proceeds from trades in this go to the selling dealers and investors, rather than to the companies that originally issued the shares in the primary market. Stock exchange - Answers A marketplace where buyers and sellers of securities meet to trade