Chapter 5 - Equity Securities Flashcards
(20 cards)
What are a dealer’s rating categories?
Rating categories represent a statement about a stock’s expected return relative to all stocks in the analyst’s coverage universe. An example would be using 3 generic ratings such as “sector outperform”, “sector perform”, “sector underperform”.
What is the purpose of CIRO’s IDPC Rule 3600?
Pertains to research reports. It sets out a list of restrictions on CIRO Dealer Members and their analysts, along with disclosure requirements for their research reports.
What is the general role of economists?
They research, collect and analyze economic data, monitor economic trends, and develop economic forecasts. The output of economists is ultimately used by equity analysts, market strategists, and IAs.
What do quantitative analysts do?
Combine historical fundamental data and statistical analyses using computerized models to identify the best stocks according to specified criteria.
What do technical analysts do?
Analyze historical market action to determine probably future price trends.
What are the 3 primary sources of information available to a technical analyst?
- Price
- Volume
- Time
What is an alternative trading system?
An alternative trading system is an off-exchange private electronic network that discreetly and directly matches buyers and sellers using a computer program.
It’s a marketplace that matches orders for execution that bypass exchanges altogether.
What is the name of a dividend that may be paid because of unusually favourable circumstances and that may not be repeated?
An extra dividend
What is an American Depositary Receipt (ADR)?
A certificate representing ownership of an underlying company’s shares.
What is the name of a dividend paid in the form of additional common shares rather than cash?
Stock dividend
What does a quantitative analyst do?
Combines historical fundamental data with statistical analyses using computer- based models to identify the best stocks according to pre-specified criteria.
What are the ratings given indicating that the expected return on a company’s shares is greater than, less than, or the same as the expected return on the shares of other companies in an equity analyst’s coverage universe. W
Sector outperform
Sector underperform
Sector perform
What is a senior issuer?
The term given to a company whose securities are listed on the Toronto Stock Exchange.
What is a company’s payout policy?
The choice to either initiate, increase dividends (or pay an extra dividend) to common shareholders or to repurchase common stock.
What is an American Depository Share (ADS)?
A security issued by a U.S. depositary (usually a trust company) representing ownership interest in a foreign company’s securities.
What is the term given to a company whose securities are listed on the TSX Venture Exchange?
Junior issuer
What does it mean if a stock is trading ex-dividend?
It means that the buyer will not receive the declared dividend for shares traded on or after this date.
Analysts are restricted from trading a stock they are issuing a report on for how long?
Dealer member rules restrict the analyst from trading in equity securities of XYZ Company for 30 calendar days before the issuance of the report and five calendar days afterwards.
What is interlisting?
Listing on more than one exchange at once.
