Volume 1- Chapter 1 Flashcards
Identify a characteristic of large Schedule l bank voting shares.
Single shareholder or group of shareholders may own up to 20%.
Identify the action of a dealer as principal in an underwriting.
Purchase the issue anticipating to resell at a profit.
Select the term that is used to refer to the controls that inhibit information sharing between various businesses and business units.
Firewall.
Identify the type of investment fund that continually issues shares to investors and redeems these shares on demand.
Mutual fund.
Identify the federally regulated foreign bank subsidiaries that have been authorized under the Bank Act to do banking business in Canada.
Schedule II.
Indicate the role that an investment dealer is taking when the firm does not assume ownership of securities at some stage in the buying and selling transaction with investors.
Agent.
Identify the term used to refer to the difference between what banks pay as interest on deposits and what they charge as interest on loans.
Spread.
Kuy, a very successful and knowledgeable investor, has inherited $200,000 and wants to create a diversified portfolio while minimizing costs. Determine the type of investment firm that is best suited for this client.
Self-directed broker.
A large furniture store wants to sell its consumer instalment contracts to generate cash. Determine the financial intermediary the store should contact.
Sales finance company.
Which department is responsible for the portfolio management activities in a securities firm?
Front office.
Identify the process by which the number of securities and the amount of cash that has to change hands among the various exchange members each day is substantially reduced.
Netting.
Identify the investment service that feature portfolios created using algorithms based on modern portfolio theory and online client questionnaires.
Robo-advisors.
Thuy’s firm develops more efficient online financial planning applications for investors and investment advisors. Identify the type of firm Thuy owns.
Fintech.
ABC Securities offers a wide range of products and services to both retail and institutional clients, as well as underwriting bond and equity issues. Determine the category of firm ABC belongs to.
Integrated.
XYZ Investments, an investment dealer, regularly takes positions in DEF Inc, a TSX listed equity, with a goal of improving liquidity in DEF while smoothing out unwarranted price fluctuations. Identify the role XYZ likely plays in the stock market.
Market maker.
Identify a characteristic of capital.
Mobility.
Identify the transaction that takes place in the secondary market.
Resale of previously issued securities.
Identify a difference between auction and dealer markets.
Prices are publicly visible in the auction market but not in the dealer market.
Select the exchange in Canada that deals exclusively with financial futures and options.
The Montréal Exchange.
Choose the system that the Ontario Securities Commission requires firms to us to report unlisted trades in Ontario.
Canadian Unlisted Board.
`Identify the role that the Canadian Securities Exchange (CSE) plays in the Canadian marketplace.
Market for emerging companies.
What happens when capital investment is deficient in an economy?
Industry slackens, unemployment rises, and living standards decline.
What are the main characteristics of the Canadian securities industry?
Highly competitive, sophisticated, innovative, and characterized by change and volatility
Market activity is measured by the variety and size of new issues, as well as trading depth and liquidity.
What is the primary regulatory framework for the Canadian securities industry?
Regulated mainly by provinces through securities commissions, which delegate powers to the Canadian Investment Regulatory Organization (CIRO)
CIRO oversees investment dealers and maintains fair market practices.
