BUSI 3410U Lecture Notes - Lecture 2: Overnight Rate, Savings Account, Prime Rate
Document Summary
Policy is a guideline, sometimes they become acts. Instrument- when a policy is adopted by more than one province. Enforcement: what are the rules and what if they break them. Disclosure: you can"t stop anyone from making silly decisions but you can give them information: full true and claim disclosure: that is the goal to provide that. Stocks, bonds, mutual funds, all the power lies in the securities. Quasi-legal: not fully legal bodies, don"t have that much power. This has rules both criminal and non-criminal: they enforce the rules on their own members, investment industry regulatory organization of canada (iiroc): people. The baby-sitters: who deal with investors, researchers of stocks, anyone dealing with investment advice. Covers investors for 1 million: mutual fund dealers association: does exactly what iiroc does, but smaller scale. Ats: automatic trading systems: proprietary, closed # of members, large companies trade with each other. They created this because there are fees to trade on exchanges.
