News Flash – Canadians Don’t Use RRSP Room

News Flash – Canadians Don’t Use RRSP Room

Canadians are expected to contribute a record $38.6 billion towards their RRSPs in 2014 but this number is minuscule compared to the $951 billion in unused RRSP contribution room. The number of contributors from 2013 to 2014 was in fact up 3.2% Fewer than 40 per cent...

What are Financial Assets? Securities, Gains

Companies need money to spend but their money comes from more places than just profit. There are a number of methods to raise money to finance activities including the following instruments: a) Debt Securities (contracts to repay with securities) – Bonds:...

Consumption Bundle Assumptions

Introductory Macroeconomics Following up from our introduction to economics/macroeconomics article, this post talks about ‘self-interest’ and maximizing over a set of preferences subject to constraints. Let’s start off with some examples, but first,...

What is an Option? Basic Option Terminology

What is an option? In the stock market there are a variety of financial instruments that sell not only stock, but ‘short or long’ positions based on expectations. Put Options are contracts between a writer (seller or issuer) and a holder (buyer or...

Seven Different Classifications of Financial Markets

We just finished five classifications of capital markets, so why not the financial markets as well?. Here is a list of the seven different classifications you’ll find in the financial markets. 1) Debt vs. Equity Markets – Legal obligation vs. –...

Why Bonds Trade at par, Discount, or Premium

Here is a quick reference chart to help you determine market price and coupon rate of bond trades. – When a bond trades at par value: – Market Price = face value – Coupon Rate = market interest rate – When a bond trades at a discount: –...
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