AFM121 Lecture Notes - Lecture 3: Canadian Securities Institute, Stock Exchange, Financial Regulation

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Garvin Blair

Document Summary

Quiz #1 - wed @ 4pm - fri @ 4am. Current events presentation - talk about any current event, but bring it back and talk about how it relates to finance and how it affects the market. Secondary: existing shares/ shareholder selling gets the money. Nasdaq also sells ipos and also sells new shares. Financial intermediaries work with their own self-interest in mind. They were betting against their own customers in the housing bubble - betting that the houses that their clients bought would default. Not acting in the interest of their clients. Banks offering sub prime loans to people with very little credit. Too much supply of houses and people couldn"t afford to pay for them so mortgage-backed securities dropped dramatically. Stock exchange used to be a physical location, but now it is more commonly done online. Tsx (main for canada), tsx venture exchange (junior companies), canadian. Most exchanges are companies listed on exchanges themselves.