Key Takeaway: Financial intermediaries allow for easier investment by mobilizing savings and providing investment opportunities that may not be available to individual investors. Financial intermediaries achieve economies of scale by pooling funds from many investors to make large investments that would not be possible for an individual investor. Using financial intermediaries can provide advantages such…

Key Takeaway: Investing in bonds incurs various costs related to managing the investment, such as brokerage fees, management fees, commissions, and taxes. These costs can add up and affect the overall return on investment. To determine the total cost of bond investment, it is important to understand the yield and interest rates. Calculating the effective…

Key Takeaway: Working capital is a crucial aspect of a company’s financial health, and calculating investment in working capital is essential for decision-making and planning. The formula for calculating investment in working capital is straightforward: add up the value of a company’s current assets and subtract the value of its current liabilities. Factors that affect…

Key Takeaway: Research and choose a Mortgage Investment Corporation (MIC) that aligns with your investment goals and risk tolerance. Understand the investment strategies and performance of the MIC, as well as the fees and risks involved before investing. Investing in MICs through a brokerage or directly from the company can provide regular income, diversification of…

Key Takeaway: Cumulative net investment loss (CNIL) is the aggregate amount of all investment losses that a taxpayer has incurred and not yet deducted for tax purposes. CNIL is an important calculation because it can impact the amount of taxes owed in the future on investment gains. CNIL is calculated by adding up all investment…

Key Takeaway: A boutique investment bank is a small, specialized financial firm that provides a range of investment banking services. Unlike traditional investment banks that offer a wide variety of services to clients, boutique investment banks typically focus on a specific niche or industry. Boutique investment banks offer a range of services, including M&A advisory,…

Key Takeaway: Principal investment is an investment made with the investor’s own funds, as opposed to borrowed funds, and is often used to achieve long-term financial goals. There are various types of principal investments, including debt, equity, and real estate investments. Each type offers its own unique characteristics and levels of risk. The advantages of…

Key Takeaways: Understanding the investment banking industry is crucial: To become successful in investment banking, it is important to have a deep understanding of the industry, including market trends, regulatory requirements, and the different types of financial transactions. Qualifications required for a career in investment banking are rigorous: A strong educational background, relevant skills and…

Key Takeaway: Registered Education Savings Plans (RESPs) are a popular investment account for post-secondary education savings in Canada, offering government grants and tax-deferred growth to help maximize savings. However, they have restrictions on contribution and usage. Tax-Free Savings Accounts (TFSAs) can also be used for education savings, providing tax-free growth and more flexibility in usage…

Key Takeaway: Investment performance refers to the return on investment generated by an investment portfolio, including factors such as market conditions, investment strategy, and investment type. To measure investment performance, investors often use absolute and relative returns, which compare the performance of a portfolio to its initial investment and to the performance of a benchmark…