Unlock Your Career in the Canadian Securities Industry with the CSC™ Program

Are you interested in pursuing a career in the Canadian securities industry? Then the Canadian Securities Course (CSC™) is the perfect entry-level education program for you. Offered by the Canadian Securities Institute (CSI), the CSC™ equips you with the knowledge and skills required to work as a registered securities representative for a securities broker.

The CSC™ program involves two multiple-choice exams that must be completed within a year of registration. You need to score at least 60% in each exam to pass the program. The program covers a wide range of topics including fundamental and technical analysis, investing services for retail and institutional clients, and much more.

By successfully completing the CSC™ program and exam, you can also satisfy the educational requirements needed to sell and trade mutual funds, exchange-traded funds (ETFs), stocks, and fixed income assets. This opens up a world of opportunities for you in the securities industry.

So, if you are passionate about securities trading and investment advice, enroll in the Canadian Securities Course today and take your first step towards a fulfilling career in this exciting industry.

Achieve Your Career Goals with the Canadian Securities Course (CSC™)

The Canadian Securities Course (CSC™) may be the perfect starting point for you. With the CSC™, you can gain the knowledge and skills necessary to provide investment advice and trade securities in Canada.

The CSC™ consists of two exams, Exam 1 and Exam 2, each with 100 multiple-choice questions to be completed within two hours. The comprehensive subject matter on the exams covers the Canadian investment marketplace, the economy, fixed-income securities, equity transactions, derivatives, and much more. It is recommended that registrants spend 150-200 hours preparing for the exam.

Completing the CSC™ within one year of registration is mandatory, but the effort is worth it. Exam 2 goes beyond the basics and includes fundamental and technical analysis, company analysis, portfolio management, and working with institutional and retail clients.

With the CSC™ in your hands, you can stand out in the highly competitive finance industry in Canada and achieve your career goals. Start your journey today with the Canadian Securities Course!

Empowering Financial Professionals: The Canadian Securities Course by CSI Global Solutions

The Canadian Securities Institute (CSI) has been empowering financial professionals since its establishment in 1970. It offers a wide range of licensing courses, advanced certifications, continuing education, and training programs to help professionals advance in their chosen field. The CSI is endorsed by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA).

In 2003, the non-profit CSI transitioned to a for-profit enterprise known as CSI Global Solutions. In 2010, it was acquired by Moody’s Corporation for C$155 million and now operates as a separate company within Moody’s Analytics.

The CSI has come a long way since its inception and now offers nearly 300 different courses. It continues to evolve by offering an increasing number of comprehensive services that help financial professionals advance in their careers. The organization’s reach extends beyond Canada, as it is known for developing educational content for securities industries in emerging financial markets such as China, Europe, the Middle East, the Caribbean, and Central America.

Through its comprehensive services, the Canadian Securities Course empowers financial professionals to build their knowledge, skills, and expertise. Whether you’re just starting or looking to advance in your career, the Canadian Securities Course by CSI Global Solutions is an excellent place to begin.

Kickstart Your Career in Trading and Investment with CSC™ Exam

The CSC™ exam consists of two parts, each with a time limit of two hours, comprising 100 multiple-choice questions per exam. The passing score for each exam is 60%. Although there are no prerequisites for taking the CSC™ exam, it is recommended that you complete the CSC™ course before attempting the Conduct and Practices Handbook (CPH) course.

The CSC™ exam is offered in various Canadian cities, with computer-based exams available in Toronto and Montreal. The cost of the exam varies depending on your location.

By passing the CSC™ exam, you can kickstart your career in trading and investment and provide valuable investment advice to clients. So, why wait? Register for the CSC™ exam today and take the first step towards a rewarding career in the world of finance.

Achieving Success in the Canadian Securities Course™: Understanding Exam Topic Weights

draft: true title: Achieving Success in the Canadian Securities Course™: Understanding Exam Topic Weights

If you’re planning to take the Canadian Securities Course™ (CSC®), it’s essential to understand the exam topic weights. The course consists of two volumes of textbooks, and each volume has a set of topics that you’ll be tested on. The exam is divided into two parts, and each part covers different areas of the securities industry.

To help you prepare for the exam, it’s vital to know the topic weights for each part. Exam 1 covers topics such as the Canadian investment marketplace, fixed-income securities, equity transactions, derivatives, and corporations’ financial statements. Exam 2, on the other hand, covers fundamental and technical analysis, portfolio management, mutual funds, segregated and hedge funds, and taxation.

Understanding the topic weights can help you create an effective study plan and maximize your chances of success. By allocating more time to the topics with higher weights, you can ensure that you’re adequately prepared for the exam.

So, if you’re looking to achieve success in the Canadian Securities Course™, make sure you understand the exam topic weights and use them to guide your exam preparation. With the right study plan and dedication, you can ace the exam and take the next step in your securities career.

Canadian Securities Course™ Exam 1:

• The Canadian Investment Marketplace: 16%
• The Economy: 13%
• Features and Types of Fixed-Income Securities: 12%
• Pricing and Trading of Fixed-Income Securities: 11%
• Common and Preferred Shares: 13%
• Equity Transactions: 10%
• Derivatives: 10%
• Financing and Listing Securities: 7%
• Corporations and Their Financial Statements: 8%

Canadian Securities Course™ Exam 2:

• Fundamental and Technical Analysis: 12%
• Company Analysis: 10%
• Introduction to the Portfolio Approach: 12%
• The Portfolio Management Process: 10%
• Mutual Funds: 14%
• Segregated and Hedge Funds: 8%
• Other Managed and Structured Products: 13%
• Canadian Taxation: 6%
• Working with the Retail Client: 10%
• Working with the Institutional Client: 10%

In this section

• CSC
  Welcome to the HB (Hugo Bootstrap) framework, we’re excited that you’re interested in it.
  • CSC® Exam 1
    The Canadian Securities Course (CSC) is designed to help individuals understand the Canadian securities industry by covering its three central elements: financial markets, financial intermediaries, and financial products. The course aims to introduce industry terminology and practices to the learners. CSC® Exam 1 section provides an introduction to the Canadian securities industry, its regulatory landscape, and the economy. It covers the different types of markets and financial instruments and explains the mechanics of securities transactions.
    • 1.1 Canadian Investments Marketplace
      1.1 Canadian Investment Marketplace In this course, we will delve into the interrelationships between different participants in the Canadian securities industry. We will particularly focus on the key role of investment dealers and other financial intermediaries in facilitating the flow of funds between lenders and borrowers. You will gain an understanding of investment capital, its importance, sources, and beneficiaries. Additionally, you will learn about the various kinds of financial instruments that are traded in the financial markets.
      • Canadian Regulatory Environment
        Canadian Regulatory Environment Welcome to this section where you will gain valuable insights into the Canadian regulatory environment. This knowledge will be instrumental in helping you navigate the various regulatory bodies and understand the principles of regulation that foster fair and open capital markets. You will discover the regulators and self-regulatory organizations’ roles, the purpose of regulation, and the principles-based regulation’s significance. Moreover, you will learn about the remediation options provided to clients who feel they have not been well-served, ensuring their financial interests are protected.
      • Canadian Securities Industry
        Canadian Securities Industry The Canadian securities industry is a complex network of lenders and borrowers. However, the key to success is the crucial role that investment dealers and financial intermediaries play in channeling funds between the two. In this introductory section, we will explore their importance and reveal how they help to maintain the stability of the market. Introduction Consider the following scenarios: A couple is in need of funds for purchasing a home.
      • Capital Market
        Capital Market Welcome to this section where you will gain a comprehensive understanding of the Canadian regulatory environment. You will be introduced to various regulatory bodies that play a vital role in promoting fair and transparent capital markets. Through this section, you will learn about the regulators, self-regulatory organizations, the purpose of regulation, and the principles of regulation that ensure a level playing field. Furthermore, you will learn about the remediation options available to clients who feel that they have not been served adequately.
    • 1.2 The Economy
      1.2 The Economy Welcome to the section of the webbook where you’ll gain foundational knowledge about economics. By the end of this section, you’ll have an in-depth understanding of the impact of microeconomic and macroeconomic environments on the financial markets, and how this understanding can lead to successful investment decision-making. You’ll learn how economic growth is measured and how specific factors determine the economy’s health, enabling you to predict the direction the markets might take.
      • Economic Policy
        Economic Policy Welcome to this section where you will gain a comprehensive understanding of the impact of economic policy on the investment landscape. You will delve into the intricacies of both fiscal and monetary policies and learn how the decisions made by the government affect the economy. Furthermore, you will be enlightened on the roles and functions of the Bank of Canada and the challenges that governments face in setting their economic policies.
      • Economic Principles
        Economic Principles Welcome to the fascinating world of economics! This section is your gateway to understanding the impact of micro and macro environments on financial markets. You’ll discover how to measure economic growth and how various factors can influence the health of the economy, helping you predict market trends. An in-depth analysis of investment decision-making indicators, such as business cycle phases, labour market conditions, and interest rates, will equip you with the knowledge to make informed investment decisions.
    • 1.3 Fixed-Income Securities: Features and Types
      An Introduction to Fixed-Income Securities Chapter Overview: This chapter provides an in-depth understanding of the fixed-income marketplace and the reasons for issuing debt securities. You will be introduced to the different types of fixed-income securities and the terminology used to discuss bonds, debentures, and other types of fixed-income securities. By the end of this chapter, you will be able to distinguish among the different types of fixed-income securities used by governments and corporations.
    • 1.4 Fixed-Income Securities: Pricing and Trading
      1.4 Fixed-Income Securities: Pricing and Trading Discover the secrets of fixed-income securities and bonds in this chapter. Learn how to calculate their price and yield, and understand the difference between nominal and real rates of return. Dive into how interest rates are represented on a yield curve and the principles that determine them. Uncover the reasons why bond prices fluctuate based on specific fixed-income pricing properties. Gain knowledge on bond trading rules and regulations, from delivering bonds to settling transactions.
    • 1.5 Equity Securities: Common and Preferred Shares
      1.5 Equity Securities: Common and Preferred Shares Welcome to this chapter where you will learn the essential features of equity securities, including common and preferred shares. We will provide you with valuable insights into the investment considerations of these two categories and compare the benefits and drawbacks of investing in each. Furthermore, we will explain the critical role played by Canadian, U.S., and global stock market indexes. By the end of this chapter, you will have a better understanding of equity securities and their potential to help you achieve your investment goals.
    • 1.6 Equity Securities: Equity Transactions
      1.6 Equity Securities: Equity Transactions Discover the ins and outs of equity transactions with this comprehensive chapter. Learn about the key features that make them an essential part of any investment strategy. You’ll delve into the critical differences between cash accounts and margin accounts, as well as the nuances between long and short positions. And that’s just the beginning. You’ll gain invaluable insights into margin account transactions, with a focus on the rules, techniques, and risks of short selling.
    • 1.7 Derivatives
      1.7 Derivatives By the end of this section, you will have a comprehensive understanding of derivatives. You’ll discover what derivatives are, their underlying assets, and the individuals who use them. Additionally, you’ll be exposed to the various kinds of derivatives, such as options, forwards, and futures contracts. Lastly, you’ll gain insights into the benefits that investors receive from the rights and warrants associated with the underlying stock on which derivatives are based.
      • Naked Option
        Derivatives: What Is a Naked Option? Naked Option An investing term that refers to an investor selling an option without holding a corresponding position in the option’s underlying security A naked option exists when the option seller does not hold a corresponding position in the option’s underlying security. The alternative to a naked option is a covered option. A covered option is an option sold by a seller holding a corresponding position in the underlying security.
      • Options
        Options What Is Out of the Money (OTM)? Terminology Extrinsic Value Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value Intrinsic Value Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model. Intrinsic value is different from the current market price of an asset. In options trading, intrinsic value is the difference between the strike price of the option and the current market price of the underlying asset.
    • 1.8 Corporations and their Financial Statements
      1.8 Corporations and their Financial Statements Welcome to this chapter of the webbook, where you’ll discover the secrets to building a successful business. You’ll learn about the three different types of business structures, with a particular emphasis on the corporate structure. You’ll discover the various types of financial statements that corporations use to stay on top of their financial position and performance. In the context of public corporations, you’ll gain a deeper understanding of the disclosure rules and the statutory rights of investors.
      • Sample Financial Statements
        Sample Financial Statements What are financial statements? Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. For-profit primary financial statements include the balance sheet, income statement, statement of cash flow, and statement of changes in equity. Nonprofit entities use a similar but different set of financial statements.
    • 1.9 Financing and Listing Securities
      1.9 Financing and Listing Securities This chapter of the webbook covers the topic of how governments and corporations raise capital by issuing debt or equity securities and bringing them to the market. You will learn about the requirements for creating a prospectus and the process of stabilizing the market after the securities have been issued. Additionally, you will learn about the different methods of distributing securities, including on and off exchanges.
  • CSC® Exam 2
    CSC® Exam 2 CSC® Exam 2 covers fundamental and technical analysis, the portfolio approach to investment management, and various types of managed and structured products that can make up a portfolio. Other topics like taxation, ethics, the financial planning process, and the institutional marketplace are also covered. It is important to consider the topics covered in CSC® Exam 1 as the foundation for the knowledge required for CSC® Exam 2.
    • 2.1 Investment Analysis
      2.1 Investment Analysis Fundamental and Technical Analysis Overview This chapter focuses on the factors that impact the equity and bond markets such as the economy, business and industry cycles, interest rates, and government policies. The main goal is to assess the potential risks and rewards that come with investing in these securities. Expected profitability and interest rates Expected profitability and interest rates are the two most important factors that impact the value of a security.
      • Company Analysis
        Company Analysis In the previous chapter, we explored the fundamental analysis of macroeconomics and industry. Now, let’s move forward to the next chapter and discuss the company analysis, which is crucial for measuring the actual or expected profitability of any securities issuer. In this chapter, you’ll discover how to examine financial statements and utilize various financial ratios to evaluate whether a company is a promising investment prospect. With this knowledge, you can make informed decisions about which companies to invest in and increase your chances of financial success.
      • Fundamental and Technical Analysis
        Fundamental and Technical Analysis Discover the secrets of successful securities analysis in this chapter! You’ll explore two powerful methods that analysts use to evaluate securities and make smart investment decisions: fundamental analysis and technical analysis. With this knowledge at your fingertips, you’ll be well-equipped to navigate the complex world of investing and secure your financial future. Introduction Investors and their advisors have access to a vast amount of information to aid them in making investment decisions.
    • 2.2 Portfolio Analysis
      2.2 Portfolio Analysis Introduction to Portfolio Approach Introduction The final step in the investment management process is portfolio management, which considers the contribution of securities to the risks and expected returns of the entire portfolio, after security selection, asset mix, and market timing decisions. Risk and Return In a perfect world, investors would be able to earn high returns without taking on any risk. Sadly, it’s not the case. High expected returns often come with high risk.
    • 2.3 Mutual Funds
      2.3 Mutual Funds Mutual funds are a popular investment option for many Canadians. There are various mutual fund products available that are managed and distributed to the public by fund groups. These funds are sold through different approaches, such as internal sales representatives, stockbrokers, or independent mutual fund salespeople. Banks, trust companies, life insurance companies, and credit unions also offer proprietary funds that are managed and sold using internal resources only.
      • Structure and Regulation of Mutual Funds
        Structure and Regulation of Mutual Funds Introduction Mutual funds have several advantages, such as low-cost professional management, diversification, a variety of types of funds, and transferability. They offer different purchase and redemption plans, various special options, liquidity, ease of estate planning, and loan collateral. However, there are also some disadvantages to consider when investing in mutual funds. The costs, including sales fees and management fees, can detract from the investor’s returns.
      • Types and Features of Mutual Funds
        Types and Features of Mutual Funds Introduction Types of Mutual Funds Money Market Funds Fixed Income Funds Balanced Funds Equity Funds Small-Cap and Mid-Cap Equity Funds Dividend Funds Commodity Funds Specialty Funds Target-Date Funds Alternative Funds Index Funds Comparing Fund Types Fund Management Styles Indexing and Closet Indexing Redemption of Mutual Fund Units or Shares Tax Consequencies of Redemption Annual Distributions Capital Gains Distributions Triggering Unexpected Taxes Adjusting Cost Base Reinvesting Distributions Withdrawal Plans Ratio Withdrawal Plan Fixed-Dollar Withdrawal Plan Fixed-Pariod Withdrawal Plan Life Expectancy-Adjusted Withdrawal Plan Suspension of Redemptions Measuring Mutual Fund Performance Reading Mutual Fund Quotes Measuring Mutual Fund Performance Time-Weighted Rate of Return Standard Performance Data Comparative Performance Benchmark Comparison Peer Group Comparisons Issues that Complicate Mutual Fund Performance Pitfalls to Avoid in Judging Mutual Fund Performance Summary References Canadian Securities Course, Volume 2, Chapter 18, “Mutual Funds: Types and Features” IFIC monthly investment fund statistics - March 2024
    • 2.4 Exchange-Traded Funds
      2.4 Exchange-Traded Funds Welcome to this chapter on Exchange-Traded Funds! By the end of this chapter, you’ll have comprehensive knowledge about ETFs’ regulation, structure, and taxation. You’ll also gain an understanding of their unique features and risks, as well as different types of ETFs and common strategies. So, get ready to equip yourself with valuable insights and make informed decisions when it comes to ETF investments. The Regulation and Structure of Exchange-Traded Funds Key Features of Exchange-Traded Funds The Various Types of Exchange-Traded Funds The Risks of Investing in Exchange-Traded Funds Comparing Exchange-Traded Funds and Mutual Funds Taxation of Investors in Exchange-Traded Funds Investment Strategies Using Exchange-Traded Funds Other Related Products References Canadian Securities Course, Volume 2, Chapter 19, “Exchange-Traded Funds”
    • 2.5 Alternative Investments, Other Managed and Structured Products
      2.5 Alternative Investments, Other Managed and Structured Products References Canadian Securities Course, Volume 2, Chapter 20, “Alternative Investments: Benefits, Risks, and Structure” Canadian Securities Course, Volume 2, Chapter 21, “Alternative Investments: Strategies and Performance” Canadian Securities Course, Volume 2, Chapter 22, “Other Managed Products” Canadian Securities Course, Volume 2, Chapter 23, “Structured Products”
      • Alternative Investments: Benefits, Risks, and Structure
        Alternative Investments: Benefits, Risks, and Structure References Canadian Securities Course, Volume 2, Chapter 20, “Alternative Investments: Benefits, Risks, and Structure”
      • Alternative Investments: Strategies and Performance
        Alternative Investments: Strategies and Performance References Canadian Securities Course, Volume 2, Chapter 21, “Alternative Investments: Strategies and Performance”
      • Other Managed Products
        Other Managed Products References Canadian Securities Course, Volume 2, Chapter 22, “Other Managed Products”
      • Structured Products
        Structured Products References Canadian Securities Course, Volume 2, Chapter 23, “Structured Products”
    • 2.6 Canadian Taxation
      2.6 Canadian Taxation References Canadian Securities Course, Volume 2, Chapter 24, “Canadian Taxation”
    • 2.7 Fee-Based Accounts and Working with Retail Clients
      2.7 Fee-Based Accounts and Working with Retail Clients References Canadian Securities Course, Volume 2, Chapter 25, “Fee-based Acconts” Canadian Securities Course, Volume 2, Chapter 26, “Working with the Retail Client”
      • Fee-based Acconts
        Fee-based Acconts References Canadian Securities Course, Volume 2, Chapter 25, “Fee-based Acconts”
      • Working with the Retail Client
        Working with the Retail Client References Canadian Securities Course, Volume 2, Chapter 26, “Working with the Retail Client”
    • 2.8 Working with Institutional Clients
      2.8 Working with Institutional Clients Investment dealers work with two types of clients: retail and institutional. Retail clients are individuals like you and me, while institutional clients are usually organizations like pension funds or large corporations. If you want to work with retail clients as an investment dealer, you’ll need to take the Canadian Securities Course. Even though most of the course content is applicable to both types of clients, there are some specific areas of knowledge that are important for institutional clients.
  • Glossary
    Glossary absolute risk Absolute risk represents the overall level of uncertainty or fluctuations in investment returns, encompassing all forms of risk associated with investment performance, including primary risks and additional risks. It does not differentiate between positive and negative fluctuations in value. accredited investor An accredited investor refers to both individuals and institutional investors who fulfill specific criteria related to their income, net worth, or investment expertise. This designation is crucial in securities law as it allows accredited investors to participate in certain investment opportunities that are not available to the general public.
  • Key terms
    • A
      A
      • Algorithmic Trading
        Algorithmic Trading Algorithmic trading is a type of trading that’s also known as black box trading and algo trading. It uses complicated mathematical formulas to execute transactions in various financial markets. This form of trading requires super-fast computers and programs that combine algorithms to come up with trading strategies that deliver maximum returns. Algorithmic trading is used for a variety of trading and investment strategies such as inter-market spreads, speculation, market making, and arbitrage.
      • Asset Classes
        Asset Classes Asset classes refer to different groups of securities that share common characteristics, are regulated by similar laws, and exhibit similar behavior in the market. There are primarily five asset classes, namely equities (stocks), fixed income (bonds), money market instruments (cash equivalents), commodities (such as gold and oil), and real estate (including land, houses, and commercial buildings), with some other less common alternative classes of assets. Financial advisors and analysts often combine these different asset classes to diversify portfolios more effectively and efficiently.
    • Stock Trading
      Stock Trading
      • Bull
        Stock Trading: What Is a Bull? Bulls are optimistic investors who are attempting to profit from the upward movement of stocks, with certain strategies suited to that theory. Bulls purchase securities under the assumption that they can sell them later at a higher price. A bull believes that the market will increase in value over time. Bears are the opposite of bulls; they believe that the general direction of prices in the market trends toward a decline.
      • Offset
        Stock Trading: What Is an Offset? An offset is a financial market strategy that requires a trader to take an opening position and then take a directly opposite position. The goal of offsetting is to reduce an investor’s net position in an investment to zero so that no further gains or losses are experienced from that position. An offset in futures trading is taking two opposite positions on a commodity to cancel the delivery of the commodity.
      • Position
        Stock Trading: Position What Is a Position? A position is the amount of a security, asset, or property that is either owned or sold short. A trader or investor takes a position when they make a purchase through a buy order, signaling bullish intent; or if they sell short securities with bearish intent. Opening a new position is ultimately followed at some point in the future by exiting or closing the position.
  • Volume 1

    Free online book to help you pass official Exam 1 of the Canadian Securities Course (CSC®) certification.

    • 1. Canadian Securities Industry
      In the "1. Canadian Securities Industry" chapter of CSC Volume 1, we delve into the complexities and interactions among key participants in the Canadian securities industry. It highlights the pivotal roles investment dealers and other financial intermediaries play in facilitating capital flow between lenders and borrowers.
      • Understanding the Role of Financial Intermediaries in Canada
        Financial intermediaries play a crucial role in the Canadian economy by facilitating the flow of capital between parties who need funds and those who have funds to invest. We will explore the concept of financial intermediaries and their impact on individuals and businesses alike, highlighting the processes involved in both borrowing and lending through these entities. What is a Financial Intermediary? A financial intermediary is an institution, such as a bank or an investment dealer, that acts as a middleman between suppliers and users of capital.
        • Staying Informed in the Securities Industry

          In the dynamic world of the securities industry, continuous learning and staying updated with market trends is crucial. Whether you are a student delving into financial textbooks or a professional honing your skills, grasping the everyday activities of financial markets enhances your understanding and competence in the field.

      • Overview of the Canadian Securities Industry

        Canada is known to possess one of the world’s most sophisticated and competitive capital markets, defined by a vibrant adoption of innovation and congeniality to change, as market dynamics evolve incessantly.

      • Investment Dealer's Role as a Financial Intermediary

        The Canadian securities industry is a complex and vital part of the national economy, fostering the flow of capital from investors to companies and other entities that require funding. An essential player in this ecosystem is the investment dealer, which serves as a financial intermediary.

        • Operational Structure of Investment Dealers

          The operational structure of investment dealers varies widely within the industry. A typical configuration involves dividing the firm into different departments, each focusing on a specific task.

          • Front, Middle, and Back Office

            Investment dealers in Canada often adopt a structured framework with defined departments, each focusing on distinct functions within the firm.

          • Senior Management

            In the hierarchy of an investment dealer in Canada, senior management plays a pivotal role.

        • Types of Investment Dealers in Canada

          The Canadian securities industry is comprised of a variety of investment dealers, each catering to different segments of the market. Understanding these different types of dealers can help investors choose the right firm for their financial needs. Here, we outline the three primary categories of investment dealers operating in Canada.

        • Principal and Agency Functions of an Investment Dealer

          This detailed examination highlights the distinctions and implications of two fundamental roles of investment dealers: principal and agent.

          • Principal Transactions in the Securities Market
            Principal Transactions in the Securities Market Principal transactions are a fundamental aspect of operations at investment dealers, involving the buying and selling of securities for the dealer’s own account. Below, we explore various types of principal transactions, including holding inventory, underwriting, and trading in secondary markets. 1. Inventory Holdings A. Overview An investment dealer, when acting as a principal, might hold securities as part of its inventory during transactions with investors.
• Insights
• Series