Chapter 1 Canadian Securities Industry KT

Question 1

The person for whom a broker executes an order, or a dealer buying or selling for its own account. May also refer to a person’s capital or to the face amount of a bond.

Answer 1

principal

Question 2

Financial technology companies that take advantage of computer technology to support or enable a variety of financial products and services.

Answer 2

fintech

Question 3

The role of an investment dealer 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 transaction.

Answer 3

agent

Question 4

A company that acts as an intermediary by matching investors with the users of capital.

Answer 4

investment dealer

Question 5

The process of confirming and matching security trade details.

Answer 5

clearing

Question 6

Investment fund using proceeds from shares and units sold to investors to invest in financial securities, redeemable on demand from the fund at the current net asset value per share.

Answer 6

mutual fund

Question 7

A type of bank that is federally regulated and is a foreign bank branch of a foreign institution.

Answer 7

schedule III bank

Question 8

The irrevocable moment when cash and securities are exchanged.

Answer 8

settlement

Question 9

Policies intended to separate and isolate investment decision-making persons in a firm from others in the firm who have undisclosed material information that could influence those decisions.

Answer 9

firewall

Question 10

Brokerage house that buys and sells securities for clients at a greater commission discount than full-service firms.

Answer 10

discount broker or self-directed broker

Question 11

Shares in this investment fund type are readily transferable in the open market and are bought and sold like other shares. Capitalization is fixed.

Answer 11

closed-end fund

Question 12

A type of firm that offers products and services across the financial industry and participates fully in both the retail and institutional markets.

Answer 12

integrated firm

Question 13

Type of bank that is Canadian-owned and regulated by the Bank Act.

Answer 13

schedule I bank

Question 14

Type of bank that is incorporated and operates in Canada as a federally regulated foreign bank subsidiary.

Answer 14

schedule II bank

Question 15

A type of fund that manages a pool of assets with the goal of supplying its beneficiaries with income during their retirement years.

Answer 15

pension fund

Question 16

A type of financial intermediary that purchases instalment sales contracts from retailers and dealers at a discount.

Answer 16

sales finance company

Question 17

Provides electronic clearing services; physical and electronic facilities to deposit and withdraw depository-eligible securities; management of related ledger positions.

Answer 17

CDS Clearing and Depository Services Inc.

Question 18

An online investment service that provides clients with automated investment advice.

Answer 18

robo-advisor