Chapter 2 Capital Market KT

Question 1

The Ontario web-based system to which the trades of unlisted securities are reported.

Answer 1

Canadian Unlisted Board or CUB

Question 2

The market where newly issued securities are sold by companies and governments to investors.

Answer 2

primary market

Question 3

Privately-owned computerized networks that match orders for securities outside of recognized exchange facilities. Also referred to as Proprietary Electronic Trading Systems (PETS).

Answer 3

alternative trading system

Question 4

An exchange that deals exclusively with non-agricultural options and futures in Canada.

Answer 4

Montréal Exchange/Bourse de Montréal

Question 5

Market in which securities are bought and sold by brokers acting as agents for their clients.

Answer 5

auction market

Question 6

The largest stock exchange in Canada with over 1,700 companies listed on the exchange.

Answer 6

Toronto Stock Exchange

Question 7

An auction market where buyers and sellers of securities meet to trade based on the laws of supply and demand.

Answer 7

stock exchange

Question 8

An individual licensed to transact in the full range of securities. The term refers to employees of SRO member firms only. Also known as a Registrant or Registered Representative (RR).

Answer 8

investment advisor

Question 9

Securities representing ownership in a company. They carry voting privileges and are entitled to the receipt of dividends, if declared.

Answer 9

common share

Question 10

The highest price a buyer is willing to pay for the financial instrument being quoted.

Answer 10

bid price

Question 11

Organizations, such as pension and mutual fund companies, that trade in large-share quantities or dollar amounts.

Answer 11

institutional investor

Question 12

Also referred to as the unlisted market. Securities are bought and sold over-the-counter with dealers acting as principals when buying and selling securities for clients.

Answer 12

dealer market

Question 13

The lowest price a seller will accept for the financial instrument being quoted.

Answer 13

ask price

Question 14

That part of the capital market in which short-term financial obligations are bought and sold.

Answer 14

money market

Question 15

The ability of the market for a particular security to absorb a reasonable amount of buying or selling at reasonable price changes.

Answer 15

liquidity

Question 16

The market where investors trade securities that have already been issued.

Answer 16

secondary market

Question 17

The difference between the bid price and ask price.

Answer 17

bid-ask spread

Question 18

Canada’s public venture marketplace, the result of the merger of the Vancouver and Alberta Stock Exchanges in 1999.

Answer 18

TSX Venture Exchange