Chapter One: The Capital Market
37 Questions
| Attempts: 162
A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold – they are markets in which money s provided for periods longer than a year. What do you know about them?
Questions and Answers
- 1.Is QTRS a dealer market or an auction market?
- 2.Is an ATS considered an auction market or a dealer market?
- 3.Are CanDeal and CanPX considered markets? Why or why not?
- 4.Are there any not-for-profit ownership structures in Canada?
- 5.In the dealer market does equity tradings and and debt tradings need to be reported?
- 6.What type of securities are not listed on exchanges? Where do these instruments trade?
- 7.What does CUB stand for? To which instruments does it apply?
- 8."They[Exchanges] set listing and reporting requirements for listed companies and they assist in the screening of statements of material facts or exchange offering prospectuses which are frequently accepted by securities commissions in lieu of standard prospectuses for some types of distributions on the exchanges."
- 9.Individual/retail and foreign investors are the sources of capital. How about the business and government? Are they still sources of capital?
- 10.Is it membership or participating organizations that publicly trade on an exchange?
- 11.Which investor has priority to the borrower's assets in case of liquidation, a debenture holder or stockholder?
- 12.What is a non-marketable bond?
- 13.What are debentures and how are they different from bonds?
- 14.Are there restrictions on bid-ask spreads that exchanges maintain? What is the implication of bid-ask spreads that trend up (gap widens) and down (gap narrows)?
- 15.It seems CNQ and NEX are the same thing. What is the difference?
- 16.Does the OTC have a secondary market?
- 17.The text refers to a missing transaction in the ATS component of securities trading. What is that missing transaction?
- 18.Explain the difference between commercial papers and bonds/debentures? Both are not secured by assets and both pay interest. What priority does the Commercial Papers have (compared to bonds and debentures). Also, are they traded at TSX VE or only at OTC?
- 19.WHAT IS THE DIFFERENCE BETWEEN A RETAIL INVESTOR AND AN INSTITUTIONAL INVESTOR?
- 20.WHAT IS A DEBT SECURITY?
- 21.1. WHAT’S THE DIFFERENCE BETWEEN CORPORATE DEBT AND CORPORATE COMMERCIAL PAPER?
- 22.HOW ARE DEBENTURES SECURED IF THERE IS NO SPECIFIC ASSET PLEDGED FOR SECURITY?
- 23.WHAT IS THE DIFFERENCE BETWEEN AN EQUITY AND A SECURITY?
- 24.WITH RESPECT TO DERIVATIVES, WHAT IS AN UNDERLYING INSTRUMENT?
- 25.WHAT’S THE DIFFERENCE BETWEEN SENIOR AND JUNIOR EQUITIES?
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