Chapter 2: The Capital Market

In this section

• Capital Markets: An Overview of Chapter 2
  Explore the critical role of investment capital, financial instruments, and markets in the economy. Understand primary and secondary markets, electronic trading systems, and the importance of financial intermediaries.
• Introduction to the Capital Market: Understanding Canada's Financial Backbone
  Explore the significance of the capital market in the Canadian economy, the role of financial intermediaries, and the relationship between suppliers and users of capital.
• Investment Capital: Understanding Real and Representational Capital in Canadian Markets
  Explore the intricacies of investment capital, differentiating between real and representational capital, and understanding direct and indirect investments in the Canadian financial landscape.
• Characteristics of Capital: Mobility, Sensitivity, and Scarcity in Canadian Markets
  Explore the key characteristics of capital, including mobility, sensitivity to the environment, and scarcity, and their impact on capital allocation and investment strategies in Canada.
• Suppliers and Users of Capital: Key Players in Canada's Financial Ecosystem
  Explore the dynamics between suppliers and users of capital in Canada, understanding their roles, relationships, and impact on economic growth.
• Understanding Financial Instruments in Capital Markets
  Explore the diverse world of financial instruments, their types, roles, and applications in capital markets, with a focus on Canadian regulations and practices.
• Fixed-Income Securities: Understanding Treasury Bills, Bonds, and Their Role in the Canadian Market
  Explore the fundamentals of fixed-income securities, including Treasury bills and bonds, their functions, and their significance in the Canadian financial landscape.
• Equity Securities: Understanding Ownership and Investment in Canadian Markets
  Explore the fundamentals of equity securities, including common and preferred shares, capital gains, dividends, and associated risks, within the Canadian financial landscape.
• Understanding Derivatives in Canadian Financial Markets
  Explore the role of derivatives in Canadian financial markets, including options and forwards, their uses in hedging and speculation, and regulatory considerations.
• Managed Products: Understanding Mutual Funds, ETFs, and Private Equity
  Explore the world of managed products, including mutual funds, ETFs, and private equity, and their role in diversifying investment portfolios in the Canadian financial market.
• Structured Products: Understanding Their Role in Canadian Capital Markets
  Explore the intricacies of structured products, their synthetic nature, and their role in Canadian capital markets. Learn about principal-protected notes, index-linked GICs, and the customization options available to investors.
• Financial Markets Overview: Understanding Financial Markets and Their Role in Securities Trading
  Explore the intricacies of financial markets, their purpose, and the role of intermediaries in facilitating transactions. Learn about the benefits of well-organized markets and the electronic platforms that drive modern trading.
• Primary and Secondary Markets: Understanding the Canadian Financial Landscape
  Explore the intricacies of primary and secondary markets, focusing on the issuance and trading of securities within the Canadian financial system. Learn about IPOs, the roles of issuers and investors, and the regulatory framework governing these markets.
• Auction Markets: Understanding Bid-Ask Dynamics in Canadian Stock Exchanges
  Explore the intricacies of auction markets, focusing on bid-ask dynamics, the role of stock exchanges, and their significance in the Canadian financial landscape.
• Dealer Markets: Understanding the Dynamics of Dealer and OTC Markets in Canada
  Explore the intricacies of dealer markets, their comparison with auction markets, the role of market makers, and the characteristics of OTC markets in the Canadian financial landscape.
• Exchanges in Canada: Understanding Canadian Stock Markets
  Explore the main stock exchanges in Canada, the types of securities traded, and the role of TMX Group Limited in integrating these exchanges. Learn about liquidity and its importance in the Canadian financial landscape.
• Alternative Trading Systems (ATS) in Canadian Capital Markets
  Explore the role of Alternative Trading Systems (ATS) in Canadian capital markets, their benefits, regulatory requirements, and major players.
• Equity Electronic Trading Systems: Understanding Automated Trading in Capital Markets
  Explore the operation of equity electronic trading systems, the role of ATS, and their impact on the capital markets. Learn about the competitive landscape, registration requirements, and Canadian regulations.
• Fixed-Income Electronic Trading Systems: Enhancing Liquidity and Efficiency in Bond Markets
  Explore the role and functionalities of fixed-income electronic trading systems like CanDeal, CBID, MarketAxess, and CanPX in Canadian bond and money markets.
• Unlisted Equity Market: Understanding Unlisted Securities in Canada
  Explore the unlisted equity market, its characteristics, trading practices, and regulatory requirements in Canada. Learn about the role of market makers and the differences from listed markets.
• Clearing and Settlement in Financial Markets: Ensuring Stability in Canadian Financial Markets
  Explore the critical processes of clearing and settlement in financial transactions, the role of CDS Clearing and Depository Services, and the importance of netting in reducing settlement risks.
• Financial Technology (Fintech) in Capital Markets: Transforming the Canadian Financial Landscape
  Explore the transformative impact of financial technology (fintech) on capital markets, focusing on innovations like online loans, electronic wallets, and automated financial planning, and their integration into equity and fixed-income markets.
• Robo-Advisors: Automated Investment Solutions in Canada
  Explore the role, features, and growth of robo-advisors in Canada, comparing them with traditional investment advisors.
• Social and Economic Shifts Affecting Capital Markets: Demographics, Pension Plans, and Investment Trends
  Explore the impact of demographic changes, pension plan transitions, and savings behavior on Canadian capital markets. Understand the roles of millennials and baby boomers in shaping investment trends.
• Cryptocurrency in Capital Markets: Understanding Blockchain and Bitcoin Integration
  Explore the role of cryptocurrency in capital markets, focusing on blockchain technology, Bitcoin integration, investment vehicles, and regulatory challenges in Canada.
• Capital Markets in Canada: A Comprehensive Overview
  Explore the essential role of capital markets in the Canadian economy, including financial instruments, market operations, and the impact of economic shifts.
• Capital Markets: Conclusion and Future Outlook
  Explore the significance of capital markets in the Canadian economy, their interconnectedness, and future trends influenced by emerging technologies and economic shifts.
• Comprehensive Glossary for Capital Markets in Canada
  Explore the essential glossary of terms related to the Canadian capital market, including definitions, examples, and practical applications.