Scribd
Upload
117 views10 pages

Canadian Securities Course-Chapter 2

Uploaded by

Yashna Sohawon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
117 views10 pages

Canadian Securities Course-Chapter 2

Uploaded by

Yashna Sohawon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Canadian Securities Course

®
Condensed slides for study review

Developed by Dazia Consulting Inc.

Chapter 2

The Capital Market

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 1


Disclaimer

• The trade-marks AFP, BCO, CSI, CSC, CPH, DFOL, FP1, FP2, FPSU, IFC, NEC, OLC, PFP, PFSA, WME,
Wealth Management Essentials, Branch Compliance Officer, Canadian Securities Course, Conduct
and Practices Handbook Course, Investment Fund in Canada, New Entrants Course, Wealth
Management Essentials, Personal Financial Services Advice Reading, Financial Planning 1,
Financial Planning 2, Financial Planning Supplement, Applied Financial Planning, and Personal
Financial Planner are owned by the Canadian Securities Institute (CSI®). The Canadian Securities
Institute (CSI®) does not sponsor, license or necessarily recommend these notes and study
material for any of its courses. Dazia Consulting Inc. is an independent supplier of educational
services. Exam preparation materials are not sponsored by any other industry organization.

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 2


1 2 3 4 5
Lesson 1. Lesson 2. Lesson 3. Lesson 4. Lesson 5.
The Canadian The Capital Market The Canadian Overview of Economic Policies
Securities Market Regulatory Economic
Environment Principles

COURSE OUTLINE
© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 3
Capital: Real (land, building, goods), representational (money,
bonds, stocks)

• Capital is scarce, mobile and sensitive to its environment.


• Country risk factors
• Political environment
• Economic trends : Gross domestic product, inflation, employment
• Fiscal policy : taxes & Government spending
• Monetary policy : money supply & foreign exchange
• Investment opportunities
• The labor Force : percent skilled and productive

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 4


Capital Sources & Users

Sources of Capital Users of Capital


• Individuals • Individuals
• Non-financial domestic • Business
corporations • Governments
(retained earnings) • Foreign
• Government
• Foreign investors

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 5


3 key components of financial industry:

Instruments Market Intermediaries


• Fixed income • Primary = Initial
• Equities, stocks public offering
• Derivatives • Secondary =
• Managed Exchanges
products
• Structured
products

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 6


Senior equities and
TSX: some debt instrument

TSX Venture: Junior equities

TSX Alpha Exchange

Stock exchanges (Auction market):


Montreal Exchange Financial future and
(ME): options

Natural Gas Exchange

Canadian Securities
Exchange

ICE Futures (Winnipeg Agricultural futures


Commodity Exchange): and options

Aequitas NEO Exchange

Nodal exchange Energy

7
© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION
Dealer Market

Auction market vs Dealer market:


■ Prices are publicly shown to clients via system for auction market.

Dealer market:

- The unlisted
equity market
- ON requires
- Dealer acts as : Much smaller
- Large in unlisted equity be
market maker for volume
transaction reported through
a particular comparing to
volume Canadian Unlisted
security Stock market.
Board Inc. (CUB)
Mostly junior
issues.

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT AUTHORIZATION 8


Trading system:

• Alternative Trading System (ATS) or Proprietary Electronic


Trading System (PETS) or Non-SRO-Trading System (NETS):
• privately own computerized network allowing brokers to

facilitate their institutional investors.

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT 9


AUTHORIZATION
Fixed income Trading system:

• CanDeal: Allows institutional investors an


access to federal bond bid and offers.
• CBID: Operates 2 distinct retail and
institutional market for fixed income products
• Market Axess: Member of IIROC in Ontario &
Quebec
• CanPX: provides data of real-time bid and offer
prices and hourly trade of Gov, provincial
bonds,
• T-Bills and some corp bonds

© 2022 Dazia Consulting Inc. DO NOT DISTRIBUTE WITHOUT 10


AUTHORIZATION

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy