CSC Volume 1. [Ch. 1- UNTIL NUMERICAL FORMULAS AND QUESTIONS APPEAR]

Glossary, objective questions, and practice tests.

Self- directed broker

Also known as discount brokers. They offer a discounted transaction costs and do not provide investment advice to investors.

Settlement

The moment of irrevocable exchange of cash and securities.

Schedule I Bank

Canadian owned banks. The largest 6 banks in Canada out-distance the asset size of other Canadian owned banks. Schedule I banks are regulated and incorporated by the Bank Act.

Schedule II Bank

Banks that are incoporated and operate in Canada as a federally regulated foreign bank subsidiaries. Schedule II are regulated and incorporated by the Bank Act.

Schedule III Bank

Banks that are federally regulated foreign bank branches of foreign institutions that have been authorized under the Bank Act to do banking business in Canada. Regulated but NOT incorporated under by the Bank Act.

Agent

An investment agent dealer operates as an agent when it acts on behalf of a buyer or a seller of a security and does not own a title to the securities at any time during the transaction.

Broker

An investment dealer or a duly registered individual who is registered to trade in securities in the capacity of an agent or principal and is a member of the canadian regulatory organization.

Canadian Investment Regulatory Organization [CIRO]

A self regulatory organization that oversees all investment deals, mutual fund dealers, and trading activity on Canada’s debt, equity, and mutual fund marketplaces.

Establishes and enforces industry regulation that protect investors and maintain fair, equitable, and ethical practices. C

Capital Market

Financial markets where debt and equity securities trade. Capital markets include organized exchanges as well as private placement sources of debt and equity.

CDS Clearing and Depositing Services Inc.

CDS provides customers with physical and electronic facilities to deposit and withdraw depository eligible securities and manage their related ledger positions (securities accounts). CDS also provides electronic clearing services both domestically and internationally, allowing customers to report, confirm and settle securities trade transactions.

Clearing

The process of confirming and matching security trade details.

Closed-end fund

Shares in closed end investment companies are readily transferable in the open market and are bought and sold like any other shares. Capitalization is fixed. No new shares can/will be created even if theres significant demand, price will increase instead.

Consumer finance company

Makes direct cash laons to consumers, who usually are unable to secure a loan from a bank. Consumer finance companies typically charge a higher interest rate than banks.

Discount Broker { “self directed” or “DIY brokers”}

Brokerage house that buys and sells securities for clients at a greater commission discount than full-service firms.

• They do not provide specific trading advice or other services.

Financial intermediary

An institution such as a bank, life insurance company, credit union, or mutual fund which receives cash, which it invests, from suppliers of capital.

Fintech

Financial technology companies that take advantage of a computer technology to provide more efficient financial products and services.

Firewall

Policies implemented to separate and isolate persons within a firm who make investment decisions from persons within a firm who are privy to undisclosed material information which may influence those decisions, For example, there should be separate fax machines for research departments and sales department.