DONE !@

What does CSA stand for and what do they do?

Canadian securities administration. Same as the sec, audit, and monitor investments.

What is corporate governance?

It's when people are hired to make sure that the shareholders' needs are represented internally. It balences the control.

What two positions are in charge of the company following GAAP?

CEO and CFO

What is the board of directors job

They do everything but report to the shareholders. Think of the board as the government, and the shareholders vote and can fire or hire board memebers.

How often, do Canadian companies on the Canadian Stock Exchange have to file financial information with security regulators?

every quarter

What is a prospectus? What is an information circular? What is an annual information form?

Prospectus

A legal document disclosing company details to investors when selling new securities.

Information Circular

A voting guide sent to shareholders prior to an official company meeting.

Annual Information Form (AIF)

A yearly report detailing a company’s operations, history, and future risk factors.

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what is gross? What is Net?

Gross is the total number of sales. Net is the sales after deductions. Think about fishing, gross is the whole ponds fish and net is after the dedcutions how you grab them in your net its only a certain amount of them.

what does leveraged mean?

Using borrowed money to pay for something like an investment.

what is the dupont model?

Comprised of three ratios to calculate ROE:

1. Profit Margin = Net income/sales

2. Asset ratio = net sales/total assets

3. Financial Leverage = Total assets/equity

What are consolidated financial statements vs unconsolidated?

Consolidated are the parent companies statments combined with its subsidiraries and unconsolidated are just the parent company’s financial statements.