- Bonds(yield to maturity)
- Stocks (buying on margin or short selling)
Social Factors(short answer)
- Corporate Social
- Intangible Property
- Forms of Ownership
Eco: affect costs sales financial uncertainty
1. eco growth:
a. trade balance(surplus and deficit): Canada have surplus
b. Exchange rates: parterner USA biggest, huge trade. More buying power from US
if Canadian dollar stronger. Oppositely, buying more Canadian dollar. Our more
expensive than other, bed!--> strong dollar
c. national debt: Canadian have debt. Borrow from other country. Run our country.
Billions. Not that bad compare others.
a. inflation: (increase of price. Less purchasing power). and deflation(few
b. Interests: ability build strong eco. Get rid of recession. Interest were low.
Lower: pushing them to expend. Borrow more. Saving less. Power eco
3. employment: unemployment is decreasing. Stabilizing. Eco doing well. Increasing.
Pillars of Canadian banking: merging together become one pillar
1. pillar #1: charter banks: BMO CIBC TD SCOTIABANK RBC 5 big charter
banks in Canada. 90% central bank: bank of Canada regulates interest
a. doing with them: save money. Mortgage. Credit cards. Investment.
Business . loan…
b. charactersitc: public traded. Private own.
c. Limits foreign-controlled banks: lower competition for local. Porters
5.<8% relationship!! Language and currency. Exchange.
d. Serve individuals, business, and others.
2. #2 Alternate Banks: trust。 Low interesting rate. Small loan. For new
venture. Low credict requirement.
3. #3 Soecilaized lending/saving: insurance. Less risky. Hier interesting
rate. Higher than charter bank. More establish. No credit ppl.
4. #4 investment dealers: 2 session.
a. Bonds: interest. Principle.
b. Stocks: primary: investment banker, firms sell IPO(intial pblic offer :
change from personal company to public. 原始股). Secondary
（AFTER initial. Though throu these firms. EX. FB 2004, private in
2004. 2006: shares online. Own part of FB）: Toronto.
5. international banking; multiple choice
a. not everywhere. Laws
b. structure: not established structure in Canada. Offer help to
international bus and get relationship with ca bus
Q: describe each pillar and its role with respect to the financial resources
of an organization
Q: what it the structure of the Canadian financial system？How is the P of Pest connected to it?
A: regulate not just interest rate but also money supply.
- Charactersitc: sign contrast; fixed rate of return semi-annually; fixed term
maturity date; priority over stockholders- pay back a loan.
1. Secured (collateral attached) vs. unsecured(debentures 公司债券)
2. Registered (name signed on the bond) vs. bearer（risky, electronic）
3. Callable 随时可偿还的: call back bond before maturity. But bondholder: pre..
money little bit more money.
4. Serial: lot maturity. Pay off little by little until final maturity date.
5. Convertible: convert to stock. – usually convert to common stock.
- what determines bond prices and what impacts bond prices when traded:
prevailing interesting rate, credit rating, economic and market risk; inflation
（money worth less）
Yield= [coupon rate x face value (**interest) +(face value-price paid)/ time
to maturity（years for unit）]/ price paid
Face value = 1000
Q: identity key info; calculate components; plug componets into formula
- at premium: pay more than face value- has highe