Uploaded by kriti chopra

Canadian securities 1

Canadian securities 1
Content : volume 1
1) Capital markets
2) Canadian security industry
3) Canadian regulatory environment
4) Economic principles
5) Economic policy
6) Fixed income securities
7) Fixed income securities: pricing and trading
8) Equity securities: common and preferred shares
9) Equity securities
10) Derivatives
11) Financing and listing securities
12) Corporation and their financial statements
The capital market
Equity instruments also commonly known as stocks or shares
Common shares usually given to shareholders the right to vote to the companys annual
meeting and also claim on its profit
 Preferred shares are entitles to fixed divided that must be paid out of earnings before
any dividend is paid to common shareowners.
Investment funds
Investment fund is a company or trust that manages the investment for its clients.
Open end fund is also known a mutual funds
Fund is raises capital by selling shares or units to investors and then they invest that capital
Advantage of investment funds are that they are professionally managed and provide a
relatively inexpensive way to diversify a portfolio.
Are suited for more sophisticated investors.
What are the financial markets:
Investor advisors
Primary markets and secondary markets
Auction markets
Markets can be divided into auction and dealer markets
Clients bids and offers for a stock are challenged for a single central market and compete
against each other.
Stock market where buyers and sellers of securities meet to trade with each other and where
prices are established according to the law od demand and supply.
There are over 80 stock exchanges in 60 nations
Market capitalization Market cap—or market capitalization—refers to the total value of
all a company's shares of stock. It is calculated by multiplying the price of a stock by
its total number of outstanding shares. For example, a company with 20 million shares
selling at $50 a share would have a market cap of $1 billion.
dealer markets
these are the second major type of markets on which securities trade. It consist a network of
dealers who trade with each other usually over phone or computer to network.
Dealers market is negotiated whereas the auction market the orders are entered
It is also referred to as over the counter market or unlisted markets