Course 1 - Chapter 2 Flashcards
Alternative Trading Systems (ATS) (3)
Privately owned computerized networks that match orders for securities outside of recognized exchange facilities (also known as PETS - Proprietary Electronic Trading Systems)
Must be reg’d as an investment dealer and a member of an SRO
Cannot list securities themselves
Ask price
The lowest price a seller will accept for the financial instrument being quoted
Auction market (2)
Mkt in which securities are bought/sold by brokers acting as agents for their clients
Example: TSX
Dealer market (2)
Mkt where trades are conducted over-the-counter in which the dealers act as principals when B-ing and S-ing securities for clients
Also called the Unlisted Market
Bid-ask spread (2)
The difference between the current bid and ask
Calc’d as Bid - Ask
Bid price
The highest price a Buyer is willing to pay for the financial instrument being quoted
Bourse de Montreal (Montreal Exchange)
A stock exchange that deals exclusively w/ non-agricultural options/futures in Canada, including all the options/futures products that previously traded on TSX
Canadian Securities Exchange (2)
Alternative mktplace for trading equity securities and emerging companies (IPOs)
Launched in 2003
Canadian Unlisted Board Inc.
A web-based system for investment dealers to report completed trades in unlisted and unquoted equity securities in ON
CanDeal
Provides institutional investors w/ electronic access to federal bond bid and offer prices and yields from its six bank-owned dealers
CanPX (2)
Joint venture of several IIROC firms
Operates as an electronic trading system for fixed-income securities providing investors with real-time bed and offer prices and hourly trade data
Capital (5)
Economist def: machinery, factories & inventory required to produce other products
Investor def: the total of financial Assets invested in securities, a home and other fixed assets, plus cash
Real capital: physical goods, real estate, land, etc.
Representational capital: Money, stocks, bonds, etc.
Economic value that represents the invested savings of individuals, corp’s, gov’ts and other org’s
CBID
An electronic trading system for fixed-income securities operating in the retail mkt
CBID Institutional
An electronic trading system for fixed-income securities operating in the institutional mkt
Common share / stock (2)
Securities representing ownership in a company.
Carry voting privileges and are entitled to the receipt of div’s, if declared
Equity securities
Evidence of a share of ownership stake in the company that issued the security
ICE NGX Canada (3)
Natural Gas exchange
Headquartered in Calgary, Alberta
Provides electronic trading, central counterparty clearing and data services to the North American natural gas and electricity markets
Institutional Investor (2)
Org’s, such as pension and mutual fund companies, that trade in large-share quantities or dollar amounts
Typically have a steady flow of money to invest