AFM121 Chapter Notes - Chapter 2: Td Canada Trust, Imperial Bank Of Canada, Scotiabank
16 Jun 2018
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Chapter 2
Intermediaries: Facilitate the transfer of capital from suppliers to users.
Investment Dealers (IDs): Intermediaries (such as underwriters) that bring
together those with surplus capital and entities that require investment capital.
IDs may serve as principals or agents. Earn commission when acting as an agent.
Earns a difference in selling price when acting as a principal.
Underwriting or Financing: Refers to the purchase of new securities from the
issuer on a given date at a specified price, which is then sold to others. IDs serve
as principals in this situation and assume the risk.
Best Efforts: When IDs serve as agents, receiving a commission from the issuer to
market their securities. The issuer assumes the risk.
Settlement Date: The date by which a buyer of securities must provide sufficient
funds (usually three business days).
Canadian Depository for Securities (CDS): The organization that settles
transactions between members without physically moving certificates for the TSX,
TSX Venture, and Bourse de Montreal (ME).
Schedule I Banks: Must be widely held, with no investor holding more than 20%.
The Big Six: The banks that account for more than 90% of the $2.9 trillion in bank
assets. The Royal Bank, Canadian Imperial Bank of Commerce, Bank of Montreal,
Scotiabank, TD Canada Trust Bank, and the National Bank.
Schedule II Banks: Are incorporated and operate in Canada but are subsidiaries of
foreign banks or other financial institutions.
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Document Summary
Intermediaries: facilitate the transfer of capital from suppliers to users. Investment dealers (ids): intermediaries (such as underwriters) that bring together those with surplus capital and entities that require investment capital. Earns a difference in selling price when acting as a principal. Underwriting or financing: refers to the purchase of new securities from the issuer on a given date at a specified price, which is then sold to others. Ids serve as principals in this situation and assume the risk. Best efforts: when ids serve as agents, receiving a commission from the issuer to market their securities. Settlement date: the date by which a buyer of securities must provide sufficient funds (usually three business days). Canadian depository for securities (cds): the organization that settles transactions between members without physically moving certificates for the tsx, Schedule i banks: must be widely held, with no investor holding more than 20%.
