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51-541: The CSA's national systems include the National Registration Database ( NRD ), a web-based database that allows security dealers and investment advisors to file registration forms electronically; the System for Electronic Disclosure by Insiders ( SEDI ), an online, browser-based service for the filing and viewing of insider trading reports; and the System for Electronic Document Analysis and Retrieval ( SEDAR ),

102-452: A broad range of service sector activities, especially as concerns financial management and consumer finance . The finance industry in its most common sense concerns commercial banks that provide market liquidity , risk instruments , and brokerage for large public companies and multinational corporations at a macroeconomic scale that impacts domestic politics and foreign relations . The extragovernmental power and scale of

153-481: A business, helps businesses raise money from other firms in the form of bonds (debt) or share capital (equity). The primary operations of commercial banks include: The United States is the largest commercial banking services location. New York City and London are the largest centers of investment banking services. NYC is dominated by U.S. domestic business, while in London international business and commerce make up

204-440: A company they perceive as possibly lacking liquidity. For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price for which the share is traded unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to either reduce their price or choose not to sell. Thus,

255-827: A financial adviser, mutual funds, and investing via the internet. The CSA coordinates various annual investor education initiatives, including the Financial Literacy Month in November and the Fraud Prevention Month in March. The CSA publishes on its website a wide range of communications and public information tools, including news releases regarding newly adopted or proposed national or multilateral rules and regulations, investor education materials, enforcement reports and materials and investor research studies. Canada Other Publicly traded A public company

306-401: A long period of time after maturity into a profitable company. However, from 1997 to 2012, the number of corporations publicly traded on US stock exchanges dropped 45%. According to one observer ( Gerald F. Davis ), "public corporations have become less concentrated, less integrated, less interconnected at the top, shorter lived, less remunerative for average investors, and less prevalent since

357-450: A more direct and efficient service since each regulator is closer to its local investors and market participants. The CSA established a permanent Secretariat in March 2004 in Montreal to provide the organizational stability necessary for CSA to function efficiently. The CSA Secretariat also monitors and coordinates the work of various CSA committees on policy initiatives. The CSA consists of

408-427: A number that represents one of the 9 subject matter categories: The CSA's impact on most Canadians comes through its efforts to help educate Canadians about the securities industry, the stock markets and how to protect investors from investment scams. The CSA provides a wide variety of educational materials on securities and investing. It has produced brochures and booklets explaining various topics such as how to choose

459-571: A portal for filing exemptive relief applications. Regulatory cooperation occurs both at national and international levels for the CSA. Among themselves, CSA members work closely in the development of new policy initiatives and the continuous improvement of the regulatory framework for securities. They further coordinate its regulatory initiatives with the Joint Forum of Financial Services. Various CSA members are also active in international organizations such

510-513: A public company. In the United Kingdom , it is usually a public limited company (plc). In France , it is a société anonyme (SA). In Germany , it is an Aktiengesellschaft (AG). While the general idea of a public company may be similar, differences are meaningful and are at the core of international law disputes with regard to industry and trade. Usually, the securities of a publicly traded company are owned by many investors while

561-639: A publicly-accessible database that contains all the required non-confidential filings related to publicly traded Canadian companies. The CSA serves a regulatory function comparable to that of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the United States. As an informal body, the CSA originally functioned primarily through meetings, conference calls, and day-to-day collaborations with

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612-553: A separate entity, its former shareholders receiving compensation in the form of either cash, shares in the purchasing company or a combination of both. When the compensation is primarily shares then the deal is often considered a merger . Subsidiaries and joint ventures can also be created de novo . That often happens in the financial sector. Subsidiaries and joint ventures of publicly traded companies are not generally considered to be privately held companies (even though they themselves are not publicly traded) and are generally subject to

663-526: A significant portion of investment banking activity. FX or Foreign exchange services are provided by many banks and specialists foreign exchange brokers around the world. Foreign exchange services include: London handled 36.7% of global currency transactions in 2009 – an average daily turnover of US$ 1.85 trillion – with more US dollars traded in London than New York, and more Euros traded than in every other city in Europe combined. New York City

714-573: A variety of reasons. Some smaller financial centres, such as Bermuda , Luxembourg , and the Cayman Islands , lack sufficient size for a domestic financial services sector and have developed a role providing services to non-residents as offshore financial centres . The increasing competitiveness of financial services has meant that some countries, such as Japan, which were once self-sufficient, have increasingly imported financial services. The leading financial exporter, in terms of exports less imports,

765-476: Is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( listed company ), which facilitates the trade of shares, or not ( unlisted public company ). In some jurisdictions, public companies over a certain size must be listed on an exchange. In most cases, public companies are private enterprises in

816-492: Is a mandatory, electronic document filing and retrieval system that allows listed Canadian public companies to report their securities-related information with Canada's securities regulation authorities. It is operated and administered by CGI Information Systems and Management Consultants Inc. (CGI), the filing service contractor appointed by the Canadian Securities Administrators. It is similar to EDGAR ,

867-521: Is especially prevalent in such countries as the United Kingdom and the United States. In the United States, the Securities and Exchange Commission requires firms whose stock is traded publicly to report their major shareholders each year. The reports identify all institutional shareholders (primarily firms that own stock in other companies), all company officials who own shares in their firm, and all individuals or institutions owning more than 5% of

918-408: Is privately held can buy out the shareholders of a public company, taking the company off the public markets. That is typically done through a leveraged buyout and occurs when the buyers believe the securities have been undervalued by investors. In some cases, public companies that are in severe financial distress may also approach a private company or companies to take over ownership and management of

969-536: Is the largest center of investment services, followed by London. The United States, followed by Japan and the United Kingdom are the largest insurance markets in the world. A financial export is a financial service provided by a domestic firm (regardless of ownership) to a foreign firm or individual. While financial services such as banking, insurance, and investment management are often seen as domestic services, an increasing proportion of financial services are now being handled abroad, in other financial centres , for

1020-481: Is traded on a major stock exchange, it is not uncommon when shares are traded over-the-counter (OTC). Since individual buyers and sellers need to incorporate news about the company into their purchasing decisions, a security with an imbalance of buyers or sellers may not feel the full effect of recent news. Financial services industry Financial services are economic services tied to finance provided by financial institutions . Financial services encompass

1071-408: Is traditionally among those to receive government support in times of widespread economic crisis. Such bailouts, however, enjoy less public support than those for other industries. A commercial bank is what is commonly referred to as simply a bank. The term " commercial " is used to distinguish it from an investment bank , a type of financial services entity which instead of lending money directly to

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1122-404: Is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company

1173-575: The Canadian Association of Pension Supervisory Authorities (CAPSA); it also includes representation from the Canadian Insurance Services Regulatory Organizations (CISRO). The Joint Forum was founded in 1999 by CSA, CCIR, and CAPSA. The CSA brings together provincial and territorial securities regulators to share information and design policies and regulations that are consistent across the country, ensuring

1224-704: The Investment Industry Regulatory Organization of Canada (IIROC). The NRD has two websites: the NRD Information Website, which contains information for the public; and the National Registration Database, for use by authorized representatives. The National Registration Search (NRS) contains the names of all registrants (individuals and firms) in Canada. The System for Electronic Document Analysis and Retrieval ( SEDAR )

1275-735: The North American Securities Administrators Association (NASAA), Council of Securities Regulators of the Americas (COSRA), and the International Organization of Securities Commissions (IOSCO), representing North-American, Pan-American, and international securities regulators respectively. Passport is a regulatory system that provides market participants automatic access to the capital markets in all Canadian jurisdictions, except Ontario , by registering only with its principal regulator and meeting

1326-527: The United States partly as a result of the Gramm–Leach–Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge. Companies usually have two distinct approaches to this new type of business. One approach would be a bank that simply buys an insurance company or an investment bank , keeps the original brands of

1377-414: The private sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states and so have associations and formal designations, which are distinct and separate in the polity in which they reside. In the United States , for example, a public company is usually a type of corporation though a corporation need not be

1428-451: The 1934 Act are generally deemed public companies. A public company possess some advantages over privately held businesses. Many stock exchanges require that publicly traded companies have their accounts regularly audited by outside auditors and then publish the accounts to their shareholders. Besides the cost, that may make useful information available to competitors. Various other annual and quarterly reports are also required by law. In

1479-401: The CSA adopted a passport system through which market participants can access to markets in all passport jurisdictions by dealing only with its principal regulator and complying with one set of harmonized laws. While the CSA co-ordinates initiatives on a cross-Canada basis, the 10 provinces and 3 territories in Canada are responsible for securities regulations and their enforcement. This provides

1530-546: The CSA established the Policy Coordination Committee, which oversees CSA's policy development initiatives, facilitates decision-making, as well as acting as a forum for resolution of policy development issues, monitors ongoing issues, and provides recommendations to the CSA chairs for their resolution. Its members are the chairs of eight regulators—Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Québec, and Saskatchewan. As of May 2021,

1581-492: The United States, the Sarbanes–Oxley Act imposes additional requirements. The requirement for audited books is not imposed by the exchange known as OTC Pink. The shares may be maliciously held by outside shareholders and the original founders or owners may lose benefits and control. The principal–agent problem , or the agency problem is a key weakness of public companies. The separation of a company's ownership and control

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1632-546: The acquired firm, and adds the acquisition to its holding company simply to diversify its earnings . Outside the U.S. (e.g. Japan ), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent and has its own customers, etc. In the other style, a bank would simply create its own insurance division or brokerage division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company. The financial sector

1683-775: The committee's chair is Grant Vingoe, the acting chair and Chief Executive Officer of the Ontario Securities Commission . The CSA maintains several databases that contain information on public companies ' disclosure and insider reporting, the registration of dealers and advisers, and a cease trade order database (CTO). The National Registration Database ( NRD ) is a Canadian web-based database that allows security dealers and investment advisors to file registration forms electronically. (An individual or company in Canada who trades or underwrites securities, or provides investment advice, must register annually with one or more provincial securities regulators.) Created to replace

1734-432: The company. One way of doing so would be to make a rights issue designed to enable the new investor to acquire a supermajority . With a supermajority, the company could then be relisted, or privatized. Alternatively, a publicly traded company may be purchased by one or more other publicly traded companies, with the target company becoming either a subsidiary or joint venture of the purchaser(s), or ceasing to exist as

1785-399: The filing system operated by the U.S. Securities and Exchange Commission for American public companies. Through registered filing agents, public companies file documents such as prospectuses , financial statements , and material change reports. In the interest of transparency and full disclosure, these documents are accessible to the public. The reports that are available on SEDAR indicate

1836-763: The finance industry remains an ongoing controversy in many industrialized Western economies, as seen in the American Occupy Wall Street civil protest movement of 2011. Styles of financial institution include credit union , bank , savings and loan association , trust company , building society , brokerage firm , payment processor , many types of broker , and some government-sponsored enterprise . Financial services include accountancy , investment banking , investment management , and personal asset management . Financial products include insurance , credit cards , mortgage loans , and pension funds . The term "financial services" became more prevalent in

1887-444: The firm's stock. For many years, newly-created companies were privately held but held initial public offering to become publicly traded company or to be acquired by another company if they became larger and more profitable or had promising prospects. More infrequently, some companies such as the investment banking firm Goldman Sachs and the logistics services provider United Parcel Service (UPS) chose to remain privately held for

1938-511: The fiscal health of public companies and investment funds, and investors who want specific materials on a specific company can search the SEDAR database for the company or investment fund. These searches can be made by company name, industry group, document type or date filed; its results are rendered in PDF format . The SEDAR database was established by the CSA in 1997. Documents filed with regulators prior to

1989-592: The implementation of SEDAR may be available from the individual securities commissions; however, in the case of the British Columbia Securities Commission , historical filings are unretrievable and may have been destroyed. On July 25, 2023, the CSA transitioned from SEDAR to SEDAR+. SEDAR+ improves on the original database by consolidating it with the national Cease Trade Order and Disciplined List (DL) databases. Other updated features include extended operating hours, an integrated fee calculator, and

2040-425: The number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization. Another example of the impact of volume on the accuracy of market capitalization

2091-496: The original paper form system, the NRD increases the efficiency of information filing and sharing between provincial security regulators. In 2001, the CSA commissioned a study that estimated the total economic benefits of such a database to the Canadian financial services industry would be $ 85 million over a 5-year period. The NRD was subsequently launched in 2003, initiated by the CSA and

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2142-497: The price per share. For example, a company with two million shares outstanding and a price per share of US$ 40 has a market capitalization of US$ 80 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. Low trading volume can cause artificially low prices for securities, due to investors being apprehensive of investing in

2193-564: The requirements of one set of harmonized laws. In brief, the system provides market participants with streamlined access to Canada's capital markets. Participants of the Passport system are the governments of all Canadian provinces and territories, excluding Ontario. To access the market in Ontario, non-Ontario market participants may use an interface system in which the Ontario Securities Commission (OSC) makes its own decisions, but generally relies on

2244-553: The review by the principal regulator. To achieve maximum efficiency for the benefit of the market, the passport regulators accept the OSC's decisions under Passport. The Joint Forum of Financial Market Regulators coordinates and streamlines the regulation of products and services in the Canadian financial markets . The Forum includes representatives of the CSA, along with those of the Canadian Council of Insurance Regulators (CCIR) and

2295-446: The same reporting requirements as publicly traded companies. Finally, shares in subsidiaries and joint ventures can be (re)-offered to the public at any time. Firms that are sold in this manner are called spin-outs . Most industrialized jurisdictions have enacted laws and regulations that detail the steps that prospective owners (public or private) must undertake if they wish to take over a publicly traded corporation. That often entails

2346-952: The securities regulators of the 10 provincial and 3 territorial governments of Canada. The CSA Chairs are the respective chairs of the securities regulators of the 10 provinces and 3 territories of Canada. They meet quarterly in person. A chair and vice-chair of the CSA are elected by members for two year terms. Each CSA member has its own staff who work on policy development and deliver regulatory programs through their participation in CSA Committees, which can include permanent committees and project committees. The latter are formed to work on specific policy projects, and can deal with subjects such as short- and long-form prospectuses , continuous disclosure, proportionate regulation, and investor confidence. Standing committees include: Executive Directors, Enforcement, Market Oversight, Registrant Regulation, Investment Funds and Investor Education. In August 2003,

2397-492: The shares of a privately held company are owned by relatively few shareholders. A company with many shareholders is not necessarily a publicly traded company. Conversely, a publicly traded company typically (but not necessarily) has many shareholders. In the United States, companies with over 500 shareholders in some instances are required to report under the Securities Exchange Act of 1934 ; companies that report under

2448-491: The smooth operation of Canada's securities industry . By collaborating on rules, regulations, and other programs, the CSA helps avoid duplication of work and streamlines the regulatory process for companies seeking to raise investment capital and others working in the investment industry. As a result of the coordination efforts of the CSA, securities markets are governed by harmonized national or multilateral instruments, which are assigned uniform 5-digit numbers, starting with

2499-428: The turn of the 21st century". Davis argues that technological changes such as the decline in price and increasing power, quality and flexibility of computer numerical control machines and newer digitally enabled tools such as 3D printing will lead to smaller and more local organization of production. In corporate privatization, more often called " going private ," a group of private investors or another company that

2550-476: The various territorial and provincial securities regulatory authorities. In 2003, the CSA was restructured into a more formal organization, in which the chair and vice-chair were elected by members to 2-year terms. In 2004, the CSA established a permanent secretariat , located in Montreal . Among other things, the secretariat monitors and coordinates the work of various CSA committees on policy initiatives. In 2016,

2601-409: The would-be buyer(s) making a formal offer for each share of the company to shareholders. The shares of a publicly traded company are often traded on a stock exchange . The value or "size" of a company is called its market capitalization , a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times

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