·
CH1-Bole of MF Rep
MF Inv : . vehicle that pools contributions from inv . & invests them in securities .
·
Value of Licensing
· Client Service :
fully understanding client needs and
identifying right solutions
.
S types of Responsibilities Legal Professional
:
, ,
Ethical
↓ ↓ J
Suitability best CS client's needs above
yours >
-
fiduciary responsibility
Compliance following : rules ,
whether
legal reg or dealer policies.
Ethical conduct : complying not with letter of law but also spirit of law
·
only
Ethics : Moral principals that go beyond behavior and addresses situations where rules we unclear or contradictory.
You still behave
if complying
can
unethically even with rules.
.
October 32019 : CSA released final amendments to N1 31.103
(Reg .
,
&
req exemptions ongoing reg , .
obligations) >
-
CFR
· Pillars of registrant expectations : KYC KYP , ,
suitability
· MF representative :
Ensuring client's purchases are suitable given their predet fin goals.
,
fun cir
, personal circ , inv .
Knowledge ,
risk
profile ,
inv . time horizon.
financial
·
Planning
CFR : reg amendments made
· . to N131-103 sections >
- KYC & KYP
, Suitability ,
Conflict of Interest , Imp,
of a trusted contact person , rithship disclosure .
CH2 -
Overview of CAD financial MarketPlace :
·
Capital : wealth
,
real material things (land) & rep , items (money ,
stocks, bonds) ,
world's most imp commodity
↳ Capital savings can be used
directly or
indirectly Source of capital-savings Users of Capital :
J J J
home inv
,
new stocks , bonds , 1. Retail Investors 1 .
Individuals
huy inv ... MFS , .
2 Institutional Investors .
2 Businesses
Mobile sensitive , , scarce .
3
Foreign Investors 3 .
Governments
·
Governments :
1) Federal : national matters laws ,
across entire country
2) Provincial : provincial or territorial matters like education healthcare , , infrastructure
3) Municipal :
responsible for local matters , provide service
directly to residents , powers det .
by provincial gor.
· Financial Instruments :
1 . Debt Instruments : fixed income securities ,
issuer
repays
loan at
maturity & makes interest pymts .
Ex : Bonds debentures migs , , ,
T-Bills ,
commercial paper
&
.
2
Equity Instruments : Stocks or shares , investor
gains ownership in the
company .
2 main types : common preferred
3 . Investment funds : Company or trust that
manages inv for its clients . Ex : MF Lopen-end fund) Fund raises
capital by selling shares or units to investor & invests that cap
4 . Derivatives : Based on
underlying instruments such as stock or index
. Ex : Options & forwards
S Other . financial Instruments : structured products that have comb.
of debt equity & inv funds
, ,
-
Ex : Linked notes & ETFs
·
Financial /Securities Market provides : forum in which buyers & sellers meet.
↳ D Market : New sold for first time (IPO) Initial Public
offering
Primary see .
,
-
2) Market : Investors trade been issued Issuer doesn't
Secondary securities that have
already ,
receive
any proceeds.
, · Also divided into : 1) Auction Market : buyer enters bid & seller offers .
(equities)
↳ Stock Exchanges marketplace & sellers meet to trade & prices determined
: where buyers by supplyA demand.
largest 2) Dealer Market : the dealers' bid & ask entered (debt Securities) e bonds & debentures
market&
Only quotations are
↳ AKA OTC or unlisted markets
Financial Intermediaries
· :
Deposit-taking & Non-deposit taking (transfer money from savers to users)
↓ ↓
banks & trusts life instance
compares
·
Liquidity Frequent Sales :
↳
,
Narrow price
of
spread between bid & ask prices small
, price fluctuations TMX Group Inc : Owns
a lot trading volume
↳ opposite is 'thin' market. 1) TSX
Bullish Investor thinks market value
: will. 2) TSX venture
exchange
. Bearish : Investor thinks market value willd . 3) Alpha Exchange
·
Insurance
Industry : 1) Life Insurance 4) Montreal Exchange
2) Property & Casualty Insurance
.
MEX (muntreal
exchange) : trades all financial & equity forwards & options
· CIRO : SRO that oversees all investment dealers &
trading activity in Cas.
Open-end funds : trade
· never on
exchange
Close-end funds : trade on
exchange
· ICENGX : Natural Gas Exchange
CIRO : Canadian Inv MFDA : MF
· .
Reg Org .
Il ROC : Inv .
Industry Reg of Canada
. Dealer Association ,
Bank Act Sets out activities chartered bank & provides
operating rules .
may engage
.
: a on
Short futures contract : Seller of
· a
underlying asset
futures Buyer of
·
long a contract : underlying asset
Buying a call
(going long a call) : bullish strategy
Buying a put : bearish
bullish
Writing a put :
Investments are
Intangible
.
Participating preferred share : Shareholder has potential to receive bigger dividend if company performs well .
·
Investment firms can act as "principal" or
"agent"
↓ ↓
·
selling see. out
of dealer doesn't own ,
security
own
inventory acts as middlemen
.
diff bet price
. . the ·
dealer earns commission.
firm pays & the
proceeds received =
profit or loss.
On derivatives contract asset
diffcurency etc Price
·
a ,
underlying can be a stock bond ,
, commodity ,
. at which investor
buys or sells underlying asset >
- Exercise price Subscription
,
price ,
or stock price
, ·
CH3-Economic Principles :
·
Microeconomics : Market behavious of indiv , or indiv .
Companies
Macroeconomics : Focuses whole
economy as a
·
on
economy : Consumers
· 3 main
groups
that interact in
,
firms ,
Government
Price that matches what of
pay for a supply
Market
equil : someone is
willing to
product with price .
Growth Domestic Product : economy's ability to produce output over time
,
market value of all final goods & services produced within a
country
over cert time.
,
measure L () Production Approach : Add all output (Buffinal goods) - value
regu
to
produce output (Value added Approach
it
2) Expenditure Approach : Add up them GDP C + I G net exports
only includes produce
+ +
money spent
· to =
d
3) Income Approach : Add up from exports imports
exports not imports all income
selling goods
-
,
Nominal GDP $value of all & services produced prevailed
·
:
goods in a
given year at prices that in that ye
·
Real GDP : Svalue of all goods & services produced in a
given year at prices that prevailed in some base
year . (Cst . dollar GDP)
↳ factors in effects of inflation
Inflation : Real nominal//demand
·
GDP >
supply
Deflation : Real GDP nominal // demand
·
>
supply
↑ GDP due to : ↑ population , 4 in
capital stock , improvements in technology
Business Cycle Phases Expansion Peak Contraction - trough -> recovery ?
: >
- >
-
·
L
↓ 2 consecutive quates >
- recession
↓
↑ GDP ↓ GDP
· Economic Indicators : Leading :
Change ahead of economy , anticipate change by indicating what businesses & consumes have begin to produce & spend
Lagging Change after the PUBLIC Private sector memp , business Looks &int Labour inflation of borrowing
:
economy .
>
- , ,
costs , ,
cost
Coincident :
Change with
economy ,
used to confirm if leading indicator is
right
.
Get a GRIP of whats
↳ GDP retail
,
happening
sales, Industrial
now .
prod Personal
, Income
.
soft landing : Economic growth slows sharply but doesn't turn
negative ,
: ParticipationrateShweworking yepopthatisnabowfowme
·
Labour Market Indicators
Unemployment Types ) Cyclical : : Due to business cycle .
working + not
working but looking
2) Frictional :
healthy ,
normal
3) Seasonal Due to : season.
4) Structural lack of skills , location
effects ofinflation :
wage rate Negative
:
,
·
·
Interest rates : nominal int. rate : effects of inflation not removed D erodes sta of.
living
·
real int. rate : nominal int rate-inflation rate 2) reduces value
of inv.
borrower 3) distorts part. in market
·
negative int. rate : makes
money signal pases sent to economies
·
Measuring Inflation : (PI (Consumer Price Index) : 600 items , CP1 , inflation 4) Rising int rates- > recession
Inflation Rate
=
I current CPI previous -
x 100 %
CPI previous
Actual Output AO PO- pos
·
> ·
output gape inflation
Output Gap :
Real GDP -potential GDP > measure
- inflation pressures · Potential output
CH1-Bole of MF Rep
MF Inv : . vehicle that pools contributions from inv . & invests them in securities .
·
Value of Licensing
· Client Service :
fully understanding client needs and
identifying right solutions
.
S types of Responsibilities Legal Professional
:
, ,
Ethical
↓ ↓ J
Suitability best CS client's needs above
yours >
-
fiduciary responsibility
Compliance following : rules ,
whether
legal reg or dealer policies.
Ethical conduct : complying not with letter of law but also spirit of law
·
only
Ethics : Moral principals that go beyond behavior and addresses situations where rules we unclear or contradictory.
You still behave
if complying
can
unethically even with rules.
.
October 32019 : CSA released final amendments to N1 31.103
(Reg .
,
&
req exemptions ongoing reg , .
obligations) >
-
CFR
· Pillars of registrant expectations : KYC KYP , ,
suitability
· MF representative :
Ensuring client's purchases are suitable given their predet fin goals.
,
fun cir
, personal circ , inv .
Knowledge ,
risk
profile ,
inv . time horizon.
financial
·
Planning
CFR : reg amendments made
· . to N131-103 sections >
- KYC & KYP
, Suitability ,
Conflict of Interest , Imp,
of a trusted contact person , rithship disclosure .
CH2 -
Overview of CAD financial MarketPlace :
·
Capital : wealth
,
real material things (land) & rep , items (money ,
stocks, bonds) ,
world's most imp commodity
↳ Capital savings can be used
directly or
indirectly Source of capital-savings Users of Capital :
J J J
home inv
,
new stocks , bonds , 1. Retail Investors 1 .
Individuals
huy inv ... MFS , .
2 Institutional Investors .
2 Businesses
Mobile sensitive , , scarce .
3
Foreign Investors 3 .
Governments
·
Governments :
1) Federal : national matters laws ,
across entire country
2) Provincial : provincial or territorial matters like education healthcare , , infrastructure
3) Municipal :
responsible for local matters , provide service
directly to residents , powers det .
by provincial gor.
· Financial Instruments :
1 . Debt Instruments : fixed income securities ,
issuer
repays
loan at
maturity & makes interest pymts .
Ex : Bonds debentures migs , , ,
T-Bills ,
commercial paper
&
.
2
Equity Instruments : Stocks or shares , investor
gains ownership in the
company .
2 main types : common preferred
3 . Investment funds : Company or trust that
manages inv for its clients . Ex : MF Lopen-end fund) Fund raises
capital by selling shares or units to investor & invests that cap
4 . Derivatives : Based on
underlying instruments such as stock or index
. Ex : Options & forwards
S Other . financial Instruments : structured products that have comb.
of debt equity & inv funds
, ,
-
Ex : Linked notes & ETFs
·
Financial /Securities Market provides : forum in which buyers & sellers meet.
↳ D Market : New sold for first time (IPO) Initial Public
offering
Primary see .
,
-
2) Market : Investors trade been issued Issuer doesn't
Secondary securities that have
already ,
receive
any proceeds.
, · Also divided into : 1) Auction Market : buyer enters bid & seller offers .
(equities)
↳ Stock Exchanges marketplace & sellers meet to trade & prices determined
: where buyers by supplyA demand.
largest 2) Dealer Market : the dealers' bid & ask entered (debt Securities) e bonds & debentures
market&
Only quotations are
↳ AKA OTC or unlisted markets
Financial Intermediaries
· :
Deposit-taking & Non-deposit taking (transfer money from savers to users)
↓ ↓
banks & trusts life instance
compares
·
Liquidity Frequent Sales :
↳
,
Narrow price
of
spread between bid & ask prices small
, price fluctuations TMX Group Inc : Owns
a lot trading volume
↳ opposite is 'thin' market. 1) TSX
Bullish Investor thinks market value
: will. 2) TSX venture
exchange
. Bearish : Investor thinks market value willd . 3) Alpha Exchange
·
Insurance
Industry : 1) Life Insurance 4) Montreal Exchange
2) Property & Casualty Insurance
.
MEX (muntreal
exchange) : trades all financial & equity forwards & options
· CIRO : SRO that oversees all investment dealers &
trading activity in Cas.
Open-end funds : trade
· never on
exchange
Close-end funds : trade on
exchange
· ICENGX : Natural Gas Exchange
CIRO : Canadian Inv MFDA : MF
· .
Reg Org .
Il ROC : Inv .
Industry Reg of Canada
. Dealer Association ,
Bank Act Sets out activities chartered bank & provides
operating rules .
may engage
.
: a on
Short futures contract : Seller of
· a
underlying asset
futures Buyer of
·
long a contract : underlying asset
Buying a call
(going long a call) : bullish strategy
Buying a put : bearish
bullish
Writing a put :
Investments are
Intangible
.
Participating preferred share : Shareholder has potential to receive bigger dividend if company performs well .
·
Investment firms can act as "principal" or
"agent"
↓ ↓
·
selling see. out
of dealer doesn't own ,
security
own
inventory acts as middlemen
.
diff bet price
. . the ·
dealer earns commission.
firm pays & the
proceeds received =
profit or loss.
On derivatives contract asset
diffcurency etc Price
·
a ,
underlying can be a stock bond ,
, commodity ,
. at which investor
buys or sells underlying asset >
- Exercise price Subscription
,
price ,
or stock price
, ·
CH3-Economic Principles :
·
Microeconomics : Market behavious of indiv , or indiv .
Companies
Macroeconomics : Focuses whole
economy as a
·
on
economy : Consumers
· 3 main
groups
that interact in
,
firms ,
Government
Price that matches what of
pay for a supply
Market
equil : someone is
willing to
product with price .
Growth Domestic Product : economy's ability to produce output over time
,
market value of all final goods & services produced within a
country
over cert time.
,
measure L () Production Approach : Add all output (Buffinal goods) - value
regu
to
produce output (Value added Approach
it
2) Expenditure Approach : Add up them GDP C + I G net exports
only includes produce
+ +
money spent
· to =
d
3) Income Approach : Add up from exports imports
exports not imports all income
selling goods
-
,
Nominal GDP $value of all & services produced prevailed
·
:
goods in a
given year at prices that in that ye
·
Real GDP : Svalue of all goods & services produced in a
given year at prices that prevailed in some base
year . (Cst . dollar GDP)
↳ factors in effects of inflation
Inflation : Real nominal//demand
·
GDP >
supply
Deflation : Real GDP nominal // demand
·
>
supply
↑ GDP due to : ↑ population , 4 in
capital stock , improvements in technology
Business Cycle Phases Expansion Peak Contraction - trough -> recovery ?
: >
- >
-
·
L
↓ 2 consecutive quates >
- recession
↓
↑ GDP ↓ GDP
· Economic Indicators : Leading :
Change ahead of economy , anticipate change by indicating what businesses & consumes have begin to produce & spend
Lagging Change after the PUBLIC Private sector memp , business Looks &int Labour inflation of borrowing
:
economy .
>
- , ,
costs , ,
cost
Coincident :
Change with
economy ,
used to confirm if leading indicator is
right
.
Get a GRIP of whats
↳ GDP retail
,
happening
sales, Industrial
now .
prod Personal
, Income
.
soft landing : Economic growth slows sharply but doesn't turn
negative ,
: ParticipationrateShweworking yepopthatisnabowfowme
·
Labour Market Indicators
Unemployment Types ) Cyclical : : Due to business cycle .
working + not
working but looking
2) Frictional :
healthy ,
normal
3) Seasonal Due to : season.
4) Structural lack of skills , location
effects ofinflation :
wage rate Negative
:
,
·
·
Interest rates : nominal int. rate : effects of inflation not removed D erodes sta of.
living
·
real int. rate : nominal int rate-inflation rate 2) reduces value
of inv.
borrower 3) distorts part. in market
·
negative int. rate : makes
money signal pases sent to economies
·
Measuring Inflation : (PI (Consumer Price Index) : 600 items , CP1 , inflation 4) Rising int rates- > recession
Inflation Rate
=
I current CPI previous -
x 100 %
CPI previous
Actual Output AO PO- pos
·
> ·
output gape inflation
Output Gap :
Real GDP -potential GDP > measure
- inflation pressures · Potential output
