CPH (Canadian Securities & Investment) flashcards
CPH · Build recall with a focused review session.
20 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Client discovery
- The collection of relevant facts about a client circumstances and objectives, distinguished from merely obtaining a signature on a form.
- Risk tolerance
- The willingness to accept uncertainty and losses, distinguished from the financial ability to absorb a particular loss.
- Capacity for loss
- The financial ability to withstand an adverse outcome, which can differ from a client stated appetite for risk.
- Suitability
- An assessment connecting the relevant product or service with the client circumstances under applicable requirements, without guaranteeing a positive outcome.
- Product due diligence
- An examination of a product structure, risks, costs and limitations sufficient for the relevant responsibility, rather than reliance on its marketing label.
- Conflict of interest
- A competing interest relevant to impartial professional judgment, whose treatment depends on the applicable obligations rather than disclosure alone.
- Material disclosure
- Information needed for the relevant informed assessment, including qualifications that can change the meaning of a statement.
- Issuer
- The person or entity issuing a security under its conditions, whose disclosure responsibilities are distinct from the intermediary duties.
- Sponsor
- An intermediary performing a defined listing-related role, including relevant advice and diligence, rather than guaranteeing the future investment value.
- Prospectus
- An offering disclosure document under the relevant framework, whose accuracy and completeness do not themselves promise a profit.
- Related party
- A connected person or entity under the relevant test, whose transactions and interests can require additional investigation or disclosure.
- Evidence provenance
- The origin and handling of information used in an assessment, helping distinguish independent support from repeated copies of one assertion.
- Investment horizon
- The relevant period over which funds may remain invested before they are needed, affecting liquidity and risk assessment.
- Liquidity
- The ability to meet obligations or convert an asset under relevant conditions, distinguished from accounting profitability alone.
- Credit analysis
- An assessment of the ability and willingness to meet an obligation, using relevant cash resources, conditions and evidence.
- Security interest
- A legally defined interest supporting an obligation against an asset, which does not eliminate valuation, recovery or enforceability risk.
- Financing cost
- The cost of obtaining resources under the relevant model, distinguished from the amount of principal borrowed or repaid.
- Net asset value
- A measure derived from relevant assets and liabilities under a stated basis, which requires the correct unit count and valuation assumptions.
- Benchmark
- A defined reference for comparison matched to the relevant asset class, period or objective, rather than any convenient favorable number.
- Audit trail
- A traceable record of relevant sources, actions and corrections, without assuming that recorded information is automatically complete or true.