Stock dilution decreases existing shareholders ownership in a company due to the company issuing new shares. Dilution can also occur when the holders of stock options decide to exercise their options.
NSSC Blog: Before You Invest
A publicly traded company splits its shares by issuing new shares to its existing shareholders in proportion to their current share holdings. In layman’s terms, in a stock split a company divides its existing shares into multiple shares to lower the per share price and potentially increase their liquidity.
Not too long ago our general inquiries email received a question from a Nova Scotia investor interested in starting an investment club. He wanted to know if there were any rules or regulations around starting an investment club under securities laws. There are some rules buried in securities laws that can be hard to find. To help you avoid digging through the rules and national instruments we’ll explain these rules and where they are.
When you’re investing in a CEDIF you’re investing in a new and or small business. Investing in any small or new business has substantial risks. There are separate risks that come with investing in a CEDIF and placing that investment in an RRSP.
An investor can short sell almost any asset or financial instrument. To make explaining short selling easier we’re going to talk about how short selling works when it comes to stocks.
Do you have trouble understanding what fees you’re paying on your investments? Maybe you don’t know your loads from your commissions. Maybe you’re one of the many investors who don’t know that they pay any fees at all. Unfortunately, yes those people do exist.
A clearing house is a third party that acts as a go-between for buyers and sellers in financial markets. They facilitate the exchange of payments involving securities or derivatives transactions. Clearing houses are also responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery, and reporting trading data.
November is Financial Literacy Month!
Throughout the month our Twitter feed and Before You Invest Blog will be sharing new posts and information on clearing houses, short selling, and CEDIFs, as well as resharing evergreen content on equities, getting stared in investing, bonds, RESPs and risk. We’ll also be debuting our new online guide on Understanding Investment Fees.
Also be on the lookout for a new campaign from the CSA on ETF Facts.