BU111 Study Guide - Preferred Stock, Money Supply, Initial Public Offering

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

Document Summary

Four pillars of canadian financial system: chartered banks: td, cibc. Description: regulated by governments and the bank charters them, privately owned: anyone purchases stocks, anyone puts money in and borrows money- largest service/ most important. Takes your money and loans it to others (deposit expansion) In order to grow, banks invest in other areas. Td bought trust union as td canada trust (now it can open trading accounts and invest: major source of short term loans for businesses. Secured loans: (ex mortgage) pledge house to bank. Unsecured loans: (ex credit cards)- nothing pledged. Ex of chartered bank: bank of canada: description: open market operations, tools for affecting money supply. Banks come here to get loans and boc sets interest rates (bank rates: alternate banks: western. Roles/functions: local banks: specialized lending/saving intermediaries. Description: life insurance companies, venture capitalist firms, pension funds. Insurance companies invest money you invest: venture capitalists lend your money to risky businesses that will prosper, investment dealers: sunlife/manulife.