Interest Rate and Stock Market
Interest Rate the cost of borrowing money. Borrowers are motivated by lower interest rates, but investors look for high
coupon rates (bond buyers)
The Bank of Canada sets the Bank rate which in turn impact the prime rate and
What is the capital market?
- Where financial products such as stocks and bonds are bought and sold
- Businesses and governments raise funds by selling securities to individual and institutional investors
- Two basic types of securities: 1) Equity (owners
What is the OSCs statutory mandate? What are the five goals of the OSC?
To provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets
and confidence in capital markets.
Segment of the market that has often been a playground for fraud
Stocks that are low-priced that typically start out at less than one dollar per share
Sold on the promise of significant growth potential
High risk as it is extremely vulner
Taxation on Investment Return
What is the Real Rate of Return?
Under Canada's tax laws, income generated by different asset classes (stocks, bonds, etc.) are treated differently and taxed at
Investors who understand how different types o