CSC Chapter 1 - Canadian Securities Industry Questions With Complete Solutions.

Agent - When a broker acts as a _________, it acts for or on behalf of a buyer or a seller, but does not itself own title to the securities at any time during the transaction Capital Markets - Markets that trade debt (bonds) and equity (stock) instruments with maturities of more than one year Self-regulatory organizations - Responsible for setting the rules that govern many aspects of investment dealers' operations, including sales, finance, and trading. Investment dealers - Act as intermediaries by matching investors with the users of capital. Each side of a transaction has its own dealer who matches the trades through the markets Clearing - The process of confirming and matching security trade details Settlement - The irrevocable moment when cash and securities are exchanged. Financial Intermediary -Describes any organization that facilitates the trading or movement of financial instruments that transfer capital between suppliers and users of capital Retail Firms - Include full-service investment dealers and self-directed brokers (also known as discount brokers) Institutional Firms - Investment dealers that serve exclusively institutional clients, organizations that trade large volumes of securities. Institutional clients include pension funds and mutual funds Integrated Firms - Offer products and services across the industry and participate fully in both the retail and institutional marketsUnderwriting - An arrangement under which an investment banker agrees to purchase all shares of a public offering at an agreed-upon price. To assume the risk of something