chapter 11 part 2 Flashcards
who is permitted to submit bids to the government of canada for issuing debt securities?
institutions recognized as government securities distributors
what is a primary dealer?
a government securities distributor who maintains a level of activity.
what are the 3 terms put at the end of company name is incorperated?
limited, corporation or incorporated
what is non-competive tender?
bids are accepted by bank of canada and awarded by averaging.
what is the maximum primary dealer bids in own account and customers?
25% in own account and 25% in customers. but together cannot exceed 40%
in addition to competitive tender bids. government securities distributors can put how much money in non-competitive bids?
3 million dollars for real return bonds. and 10 million for other types of bonds
what types of bonds does the provincial government sell through fiscal agents?
direct bonds and guaranteed bonds
what is a guaranteed bond?
a bond issued by a crown corporation but guaranteed by the provincial government.
what is a direct bond?
its directly issued and guaranteed by the provincial government.
how do companys acquire financing with intermediaries?
though a negotiated offer. Negotiate with a dealer the type of security, price, valuation, special features and protective measures.
what is authorized shares?
the maximum number of shares a company is aloud to issue under its charter.
what is issued shares and outstanding shares?
issued shares is amount of authorized shares used. outstanding is amount of shares owned by shareholders. almost same meaning
what is public float?
amount of shares held by the public that can be traded. not shares owned by officers, directors and institutions
the smaller the float the more volatile the price
