CSC Chapter 1 - The Canadian Securities Industry
A user of capital is people BORROW
who need to ____ capital for
their own use. A) A couple needs to borrow money to buy a home.
B) An entrepreneur needs to raise funds to develop anew product.
List two examples.
A supplier of capital is provides
someone who ____ capital,
not necessarily for A) A mother wants to set up a regular program to save for her
themselves. children's education.
Give an example.
What do suppliers and users The need for a financial intermediary to help them meet
of capital have in common? their goals.
What is a financial An institution such as a bank that borrows money from suppliers of
intermediary? capital and lends it to users of capital.
1) Investors lend funds to the intermediary, and
theintermediary, in turn, lends those funds to borrowers in
What are the two ways a
the form of loans, mortgages, and other products.
financial intermediary can
work?
2) The intermediary can also raise capital by bringinga new
issue of securities to the financial markets.
How are they different? (1)
The difference is that the latter means is more direct.
,Market activity is measured Variety
by the size and ____ of new
issues that are brought to
depth
the market, as well as the
_____ and liquidity of trading
of those issues. (4)
Who regulates the Canadian b) the provinces
securities industry?
a) bank of canada
b) provinces
c) federal government
d) the big six banks
Canadian securities are commissions / administrators
regulated by the provinces by
creating and enforcing their
own laws and regulations
through
securities ____ / ____
What does CIRO stand for, and CIRO = Canadian Investment Regulatory Organization
what is its functions?
(1 + 2) - National self-regulatory organization (SRO)
thatoversees all investment dealers, mutual fund dealers,
and trading activity on Canada's debt, equity, and mutual
fund marketplaces
- Establishes and enforces industry regulations
thatprotect investors and maintain fair, equitable, and
ethical practices
, What two former Investment Industry Regulatory Organization of
organizations does CIRO Canada (IIROC) and the Mutual Fund Dealers
consist of? Association of Canada (MFDA)
Suppliers and users of capital stock; money
trade financial instruments
through financial markets
such as ____ exchanges and
____ markets.
Investment ____ act as Dealers ie brokers
intermediaries by matching
investors with the users of
capital. Each side of a
transaction has its own
broker who matches the
trades through the markets
Trades and other The process of confirming and matching security trade details
transactions are cleared and
settled through organizations
such as CDS
Clearing and Depository
Services Inc. and banks.
What is clearing?
A user of capital is people BORROW
who need to ____ capital for
their own use. A) A couple needs to borrow money to buy a home.
B) An entrepreneur needs to raise funds to develop anew product.
List two examples.
A supplier of capital is provides
someone who ____ capital,
not necessarily for A) A mother wants to set up a regular program to save for her
themselves. children's education.
Give an example.
What do suppliers and users The need for a financial intermediary to help them meet
of capital have in common? their goals.
What is a financial An institution such as a bank that borrows money from suppliers of
intermediary? capital and lends it to users of capital.
1) Investors lend funds to the intermediary, and
theintermediary, in turn, lends those funds to borrowers in
What are the two ways a
the form of loans, mortgages, and other products.
financial intermediary can
work?
2) The intermediary can also raise capital by bringinga new
issue of securities to the financial markets.
How are they different? (1)
The difference is that the latter means is more direct.
,Market activity is measured Variety
by the size and ____ of new
issues that are brought to
depth
the market, as well as the
_____ and liquidity of trading
of those issues. (4)
Who regulates the Canadian b) the provinces
securities industry?
a) bank of canada
b) provinces
c) federal government
d) the big six banks
Canadian securities are commissions / administrators
regulated by the provinces by
creating and enforcing their
own laws and regulations
through
securities ____ / ____
What does CIRO stand for, and CIRO = Canadian Investment Regulatory Organization
what is its functions?
(1 + 2) - National self-regulatory organization (SRO)
thatoversees all investment dealers, mutual fund dealers,
and trading activity on Canada's debt, equity, and mutual
fund marketplaces
- Establishes and enforces industry regulations
thatprotect investors and maintain fair, equitable, and
ethical practices
, What two former Investment Industry Regulatory Organization of
organizations does CIRO Canada (IIROC) and the Mutual Fund Dealers
consist of? Association of Canada (MFDA)
Suppliers and users of capital stock; money
trade financial instruments
through financial markets
such as ____ exchanges and
____ markets.
Investment ____ act as Dealers ie brokers
intermediaries by matching
investors with the users of
capital. Each side of a
transaction has its own
broker who matches the
trades through the markets
Trades and other The process of confirming and matching security trade details
transactions are cleared and
settled through organizations
such as CDS
Clearing and Depository
Services Inc. and banks.
What is clearing?
