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10 Cards in this Set
- Front
- Back
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SRO
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Self regulatory orgs: securities commissions delegate some powers to SROs- help protect investors
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investment dealers role in the security market
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1) transfer capital from savers to users through underwriting and distribution of new sec (primary)
2) maintaining the secondary market |
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what has contributed to the expansion of the chartered banks assets?
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1) greater international activity
2) changes in the Bank ACt permitting the banks to compete in new sectors 3) creation of more banks 4) purchase of many major trust companies by banks |
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What type of firms make up the Canadian securities industry?
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1) Integrated: offer products and services that cover all aspects of the industry- write all gov debt, trade in secondary market, foreign trade, anciliary services (research, advice)
2) institutional: much smaller, boutiques, specialize (industry, bond, tax) 3) Retail (remainder): full service (offer advice) and discount brokers, 3) Retail: |
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typical departments for a securities firm (large integrated)
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* typical divide into wealth management (P/CB) and global capital markets
Management, Sales Department, Underwriting/Finance Department, Trading, Research, Admin |
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how are firms financed
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- shareholder injection
- loans/borrowed money to finance securities inventory, underwriting, trading commitments - revenue: mostly tractions/commissions |
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From a business perspective, security firms are most vulnerable to what?
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1) Cyclical Business swings
2) Unpredictable changes in bond and stock trading volumes 3) Security and interest rate gyrations in canada/world |
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investment dealer principle vs agent
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principle: firm owns security, profit is diff between purchase and selling price
broker agent: does not own title to securities, profit is commission |
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CDS
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Clearing and Depository Systems
- market places must report trades netting: clearing system establishes and confirms a credit or debit cash or security position balance for each member firm and informs each member of the securities or funds it must deliver to balance its account |
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Chinese walls
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THe control that inhibit information sharing between various businesses and business units ( brokerage firms, insurance products, and CB)
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