BU111 Lecture Notes - Lecture 5: Toronto Stock Exchange, Trust Company, Life Insurance

• School: WLU
• Department: Business
• Course: BU111
• Professor: Leanne Hagarty

Document Summary

Elements: inflation/deflation, interest rates, employment rates, exchange rates, balance of trade, productivity. Significance: affect economic stability, employment, economic growth (measures: aggregate output, gdp, gnp) Canadian financial system: financial institutions facilitate flow of money, four legal areas / pillars , chartered banks, alternate banks, life insurance companies, investment dealers, lines between pillars have blurred due to deregulation. Changes in banking: deregulation, changes in consumer demands, competition from foreign banks. Pillars #2 and #3: pillar #2 alternate banks, trust companies & credit unions, pillar #3 specialized lending/saving intermediaries, insurance co. , venture capital firms, pension funds. Pillar #4 investment dealers: facilitate trade of stocks, bonds and other products in securities markets, primary markets, investment bankers/dealers, advise, underwrite, distribute, secondary markets, toronto stock exchange and other exchanges. They pay interest (coupon) each year and pay off the debt (face value) on an agreed date (maturity date) Written on face of bond; amount which is being borrowed/must be returned.