Chapter 7: Types of Investment Products and How They Are Traded

In this section

• Introduction to Investment Products: Understanding Securities, Risk Tolerance, and the Canadian Regulatory Landscape
  Gain a comprehensive overview of investment products, including stocks, bonds, and derivatives, with insights on risk profiles, returns, and Canadian regulatory frameworks.
• What Are Fixed-Income Securities?
  Discover the foundational details of fixed-income securities, exploring how they generate predictable income, manage risk, and support diversified portfolios in the Canadian market context.
• The Fundamentals of Bond Pricing and Properties
  Explore how interest rates, credit quality, maturity, and special features influence bond pricing in the Canadian market, with real-life examples and best practices.
• What Are Equity Securities? A Comprehensive Guide to Ownership and Growth
  Discover the foundations of equity securities, including common and preferred shares, dividend dynamics, regulatory environments, and practical strategies for investing in Canada's stock market.
• How Are New Securities Brought to Market?
  Learn how new securities like IPOs and follow-on offerings are introduced in the Canadian marketplace, including underwriting methods, regulatory requirements, and best practices for issuers, underwriters, and investors.
• What Are Derivative Securities? A Deep Dive into Futures, Options, and Swaps
  Learn about the fundamentals of derivative contracts, including forwards, futures, options, and swaps, and their role in hedging, speculation, and mutual fund investment strategies in Canada.
• Trading and Settlement Overviews
  Explore how trades occur in secondary markets, understand the T+2 settlement cycle, and learn about the clearing process in Canadian financial markets. Gain practical insights into the roles of exchanges, OTC markets, and clearing agencies such as CDS, along with best practices for mutual fund representatives coordinating multi-asset portfolios.
• Summary and Application of Investment Products and Trading
  A comprehensive overview of how diverse investment products, from fixed-income to derivatives, fit within Canadian markets and how to apply key principles like KYC, suitability, and regulatory compliance in practice.