Chapter 18 Financial Services Industry in Canada Flashcards Preview

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Flashcards in Chapter 18 Financial Services Industry in Canada Deck (22):
1

Trust Company

A financial institution that can administer estates, pension plans and agency contracts, in addition to other activities conducted by banks

2

Non-Banks

Financial organizations that accept no deposits but offer many services provided by regular banks

3

Pension Funds

Amounts of money put aside by corporations,non-profit organizations or unions to cover part of the financial needs of their members when they retire

4

Money

Anything that people generally accept as payment for goods and services

5

Barter

The trading of goods and services for other goods and services

6

Money Supply

The amount of money the Bank of Canada makes available for people to by goods and services

7

Prime Rate

The interest rate that banks charge their most creditworthy customers

8

Commercial Bank

A profit-seeking organization that receives deposits from individuals and corporations in the form of cheqing and savings accounts and then uses some of these funds to make loans

9

Demand Deposit

The technical name for cheqing account, the money in the demand deposit can be withdrawn anytime on the demand from the depositer

10

Time Deposit

The technical name for savings account, the bank can require prior notice before the owner withdraws money from a time deposit

11

Certificate of Deposit

A time deposit account that earns interest to be delivered at the end of the certificated maturity date

12

Securities Dealer

A firm that trades securities for its clients and offers investment services

13

Prospectus

A condensed version of economic and financial information that a company must make available to investors before they purchase a security

14

Securities Commision

A government agency that administers provincial securities legislation

15

Stock Exchange

An organization whose members can buy and sell securites for companies and investors

16

Stock Broker

A registers representative who works as a market intermediary to buy and sell securities for clients

17

Capital Gains

The positive difference between the purchase price of a stock and its sales price

18

Buying on Margin

Purchasing securities by borrowing some of the cost from the broker

19

Stock Splits

An action by a company that gives shareholders two or more shares of stock for each one they own

20

Mutual Fund

A fund that buys stocks and bonds and then sells shares in those securities to the public

21

Diversification

Buying several different investment alternatives to spread the risk of investing

22

Credit Union

Non-profit, member owned financial co-operatives that offer a full variety of banking services to their members