RSM100Y1 Lecture Notes - Lecture 21: Corporate Bond, Canada Deposit Insurance Corporation, Stock Market
Document Summary
Financial system: the mechanism by which money flows from savers to users. Securities: financial instruments that represent the obligations of the issuers to provide the purchasers with the expected stated returns on the funds invested or loaned. Common shares: the basic form of corporate ownership. Financial markets: markets where securities are issued and traded. Primary markets: financial markets where firms and governments issue securities and sell them initially to the general public. Secondary market: a collection of financial markets where previously issued securities are traded among investors. Stock market (exchanges): markets where shares of stocks are bought and sold by investors. Financial institutions: intermediaries between savers and borrowers that collect funds from savers and then lend the funds to individuals, businesses and governments. Canada deposit insurance corporation(cdic): the federal agency that insures deposits at commercial and savings banks. Bank of canada (the bank): the central bank of canada.
