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75 Cards in this Set
- Front
- Back
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Alternative trading systems
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privately owned computerized networks that match orders for securities outside of recognized exchange facilities. also referred to as proprietary electronic trading systems. also known as (ATS)
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auction market
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market in which securities are bought and sold by brokers acting as agents for their clients, in contrast to a dealer market where trades are conducted over the counter.
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canadian national stock exchange
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launched in 2003 as an alternative marketplace for trading equity securities and emerging companies. also known as (CNSX)
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canadian unlisted board inc
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an internet web based system for investment dealers to report completed trades in unlisted and unquoted equity securities in ontario. also known as (CUB)
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CanDeal
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provides institutional investors with electronic access to federal bond bid and offer prices and yields from its six bank owned dealers
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canPX
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a joint venture of several IIROC member firms and operates as an electronic trading system for fixed income securities providing investors with real time bid and offer prices and hourly trade data
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capital
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both real, material things such as land and buildings, and representational items such as money, stocks and bonds.
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CBID
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an electronic trading system for fixed income securities operating in both retail and institutional markets
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common shares
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securities representing ownership in a company. they carry voting privileges and are entitled to the receipt of dividends, if declared
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dealer market
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a market in which securities are bought and sold over the counter in which dealers act as principals when buying and selling securities for clients. also known as the unlisted market
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debt
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money borrowed from lenders for a variety of purposes. the borrower typically pays interest for the use of the money and is obligated to replay it at a set date
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derivative
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a type of financial instrument whose value is based on the performance of an underlying financial asset, commodity, or other investment. derivatives are available on interest rates, currency, stock indexes.
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equity
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ownership interest in a corporations stock that represents a claim on its revenue and assets.
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ICE futures canada
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an exchange that trades agricultural futures and options exclusively
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institutional client
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a legal entity that represents the collective financial interests of a large group. a mutual fund, insurance company, pension fun and corporate treasury are a few examples.
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investment advisors
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an individual licensed to transact in the full range of securities. also known as (IAs)
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investment fund
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a company which uses its capital to invest in other companies
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market capitalization
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the dollar value of a company based on the market price of its issued and outstanding common shares. it is calculated by multiplying the number of outstanding shares by the current market price of a share
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market makers
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a trader employed by a securities firm who is authorized and required, by applicable self regulatory organizations to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities.
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mutual fund
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an investment fun operated by a company that uses the proceeds from shares and unites sold to investors to invest in stocks, bonds, derivatives and other financial securities
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montreal exchange
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a stock exchange that deals exclusively with non agricultural options and futures in canada, including all options that previously traded on the toronto stock exchange. also known as (ME)
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open-end funds
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this type of fund sells its own new shares to investors, and then buys back their old shares. this fun is not listed and capitalization is not fixed.
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option
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a right to buy or sell specific securities or properties at a specified price within a specified time.
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preferred shares
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a class of share capital that entitles the owners to a fixed dividend ahead of the company's common shares and to a stated dollar value per share in the event of liquidation. usually do not have voting rights unless a stated number of dividends have been omitted.
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primary market
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the market for new issues of securities. the proceeds of the sale of securities in a primary market go directly to the company issuing the securities.
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quotation and trade reporting systems
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recognized stock markets that operate in a similar manner to exchanges and provide facilities to users to post quotations and report trades. Also known as the (QTRS)
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retail investor
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individual investors who buy and sell securities for their own personal accounts, and not for another company or organization.
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secondary market
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the market where securities are traded through an exchange or other the counter subsequent to a primary offering.
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stock exchange
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a marketplace where buyers and sellers of securities meet to trade with each other and where prices are established according to laws of supply and demand.
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toronto stock exchange
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the largest stock exchange in canada with other 1700 companies listed on this exchange. also known as TSX
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TSX venture exchange
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canadas public venture marketplace, the result of the merger of the of the vancouver and alberta stock exchange in 1999.
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agent
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an investment dealer operates as an agent when it acts on behalf of a buyer or seller of a security and does not itself own title to the securities at any time during the transactions.
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broker
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an investment dealer or a duly registered individual that is registered to trade in securities in the capacity of an agent or principal and is a member of a self regulatory organization.
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clearing and depository services inc
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provides customers with physical and electronic facilities to deposit and withdraw depository-eligible securities and manage their related ledger positions
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closed-end funds
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this type of share is bought and sold like other shares, and is readily transferable in the open market.
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primary distribution
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the original sale of any issue of a company's securities.
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principal
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the person for whom a broker executes an order, or a dealer buying or selling for its own account.
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self-regulatory organizations
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an organization recognized by the securities administrators as having power to establish and enforce industry regulations to protect investors and to maintain fair, equitable, and ethical practices in the industry and ensure conformity with securities legislation. also known as (SRO)
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underwriting
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the purchase for resale of a security issue by one or more investment dealers or underwriters.
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arbitration
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a method of dispute resolution in which an independent third party is chosen to assist aggrieved parties recover damages.
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financial services authority
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the body that administers the regulatory framework surrounding quebecs financial sector. also known as the (AMF)
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beneficial owner
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the real, underlying owner of an account, securities or other assets. an investor may own shares which are registered in the name of an investment dealer, trustee or bank to facilitate transfer or to preserve anonymity, but the investor would be the beneficial owner.
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canada deposit insurance corporation
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a federal crown corporation providing deposit insurance against loss (up to $100k) when a member insitution fails. also known as the (CDIC)
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canadian investor protection fund
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a fund that protects eligible customers in the event of the insolvency of an IIROC dealer member. it is sponsored solely by IIROC and funded by quarterly assessments on dealer members. also known as the (CIPF)
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canadian securities administrators
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the (CSA) is a forum for the 13 securities regulators of canada's provinces and territories to coordinate and harmonize the regulation of the canadian capital markets
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directors circular
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information sent to shareholders by the directors of a company that are the target or a takeover bid. a recommendation to accept or reject the bid, and reasons for this recommendation, must be included.
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insider
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all directors and senior officers of a corporation and those who may also be presumed to have access to nonpublic or inside information concerning the company; also anyone owning more than 10% of the voting shares in a corporation. insiders are prohibited from trading on this information.
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mutual fund dealer association
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the self regulatory organization that regulates the distribution (dealer) side of the mutual fund industry in canada. also known as a (MFDA)
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material change
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a change in the affairs of a company that is expected to have a significant effect on the market value of its securities.
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national do not call list
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the canadian radio-television and telecommunications commission has established rules that telemarketers and organizations that hire telemarketers must follow also known as the (DNCL)
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national policies
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the canadian securities administrators have developed a number of policies that are applicable across canada. these coordinated efforts by the CSA are an attempt to create a national securities regulator framework.
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national registration database
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a web based system that permits mutual fund salespersons and investment advisors to fire applications for registration electronically. also known as the (NRD)
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new account application form
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a form that is filled out by the client and the IA at the opening of an account. it gives relevant information to make suitable investment recommendations. also known as a (NAAF)
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nominee
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a person or firm in whose name securities are registered. the shareholder, however, retains the true ownership of the security.
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office of the superintendent of financial institutions
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the federal regulatory agency whose main responsibility regarding insurance companies and segregated funds are to ensure that the companies issuing the funds are financially solvent. also known as the (OSFI)
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ombudsman for banking services and investments
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an independent organization that investigates customer complaints against financial services providers. (OBSI)
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proxy
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written authorization given by a shareholder to someone else, who need not be a shareholder, to represent him or her and vote his or her shares at a shareholders' meeting.
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reporting issuer
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usually, a corporation that has issued or has outstanding securities that are held by the public and is subject to continuous disclosure requirements of securities administrators.
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right of action for damages
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most securities legislation provides that those who sign a prospectus may be liable for damages if the prospectus contains a misrepresentation. this right extends to experts e.g., lawyers, auditors etc...
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right of rescission
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the right of a purchaser of a new issue to rescind the purchase contract within the applicable time limits if the prospectus contained an untrue statement or omitted a material fact
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right of withdrawal
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the right of a purchaser of a new issue to withdraw from the purchase agreement within two business days after receiving the prospectus
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takeover bid
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an offer made to security holders of a company to purchase voting securities of the company which, with the offeror's already owned securities, will in total exceed 20% of the outstanding voting securities of the company. for federally incorporated companies, the equivalent requirement is more than 10% of the outstanding voting shares of the target company.
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universal market integrity rules
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a common set of trading rules that are applied in all markets in canada. (UMIR) are designed to promote fair and orderly markets.
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prospectus
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a legal document that describes securities being offered for sale to the public. must be prepared in conformity with requirements of applicable securities commissions.
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window dressing
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deliberately causing the last sale for the day in a security to be higher than warranted
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bucketing
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confirming a transaction where no trade has been executed
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front running
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making a practice of effecting a trade for the advisors own account prior to effecting a trade for a client
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dealing representative
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includes mutual fund representatives, investment representatives, and registered representatives. IA's are approved to give investment advice.
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trader
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approved to enter orders into the trading systems of specific exchanges
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supervisor
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approved to supervise the business activities of other approved persons
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executive
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approved to participate in the executive management of a dealer member
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director
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approved to sit on the board of directors of a dealer member or occupy a similar position in a dealer member not organized as a corporation.
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ultimate designated person
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the chief executive officer of a dealer member or person in a similar position, approved to have overall responsibility for the dealer members compliance with laws and regulations, including IIROC rules, governing its securities related activities.
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chief financial officer
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approved to be responsible for ensuring that the dealer member complies with the financial adequacy requirements of IIROC rules.
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chief compliance officer
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approved to be responsible for ensuring that the dealer member has systems and controls reasonably designed to ensure its compliance with laws and regulations, including IIROC rules, governing its business conduct.
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