Volume 1- Chapter 2 Flashcards
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 use 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.
Identify the security that has its value based on an underlying instrument.
Derivatives.
Select the electronic fixed-income trading system that operates a retail and an institutional fixed-income marketplace.
CBID/CBID Institutional.
Gareth asks his Investment Advisor to purchase $50,000 in new corporate bonds that are being issued to raise funds to build a new processing facility. Select the term that would refer to this type of capital investment.
Indirect investment.
Identify a characteristic of dealer markets.
Primary market for bonds and debentures.
The current bid price for ABC Inc is $25.75 and the ask price is $25.87, with last trade at $25.77. Calculate the spread.
0.12
Identify a characteristic of a liquid market.
Narrow price spreads in bid/ask prices.
XYZ is a producer of technologically advanced experimental electronic devices that has recently experienced rapid growth. Projections are that growth will continue but the market is uncertain at present. Determine the exchange XYZ’s investment dealer could recommend for listing of XYZ’s initial public offering.
Canadian Securities Exchange (CSE).
Identify the alternative trading system where an investment dealer can locate real time bid and offer quotations from a range of dealers for Government of Canada bonds and treasury bills.
CanPx.
