The Nova Scotia Securities Commission is responsible for the regulation of securities and of derivatives. A derivative is contract between two or more parties with the value of the contract being tied to an underlying interest. An underlying interest can include stocks, bonds, commodities, currencies, interest rates, an index or the weather.
NSSC Blog: Before You Invest
After discussing how advisers are paid last week, we had a similar question come up regarding mutual funds fees. Mutual funds are a very popular investment vehicle which we discussed in a previous post. We briefly looked at mutual funds fees in the post, but investors were still left with some questions, especially after we looked at paying advisers last week. So, let’s talk about mutual fund fees.
If you have an adviser you’re paying him or her in some way for the services they provide to you. You may not personally hand them cash or see the money come out of your account, but it’s happening nonetheless. Since that’s the case, how does your adviser get paid? There are a number of different ways and you really should know which method so that you understand how much you are paying for your investments.
Advisers are typically paid in at least one of the following ways…
Disputes between advisers and their clients are rare, but they can occur. Even if an investor holds up their end of the adviser-client relationship and does all the necessary due diligence, disputes and problems can arise.
Investors should know their options, and what they can do should a problem arise.
When the Nova Scotia Securities Commission is delivering investor education presentations, seminars or tutorials one of the first things were always tell people is to check the registration of their investment adviser. We’ve been getting a few questions about advisers lately, including what exactly is registration? We’re always telling you to check registration, but what does it mean for an adviser to be registered?
The Nova Scotia Securities Commission will be joining hosts, CFA Society Atlantic Canada at the Halifax Central Library, Thursday May 4 for their event Putting Investors First.
This free educational presentation is open to the public and will outline what the Nova Scotia Securities Commission does to protect investors and maintain confidence in the capital markets.
The event will be held in the Lindsay Children’s on the second floor of the Halifax Central Library from 7:00-8:30 p.m.
Alternative investments are some of most complicated and difficult to navigate investments available. They usually take on higher-than-average risk in return for the potential of higher-than-average returns. Due to their complex nature, alternative investments are meant for very knowledgeable investors or for investors with a lot of money who can afford to take higher risks or get specialized advice.
Here are some examples of alternative investments:
An equity, or shares as is it commonly known, gives the purchaser a stake in a business. This may also entitle the owner to vote at shareholder meetings and receive profits that is allocated to shareholders. These profits are known as dividends.
A mutual fund is a specific type of investment fund; a collection of investments such as stocks and bonds. This collection of investments is owned by a group of investors and managed by a professional money manager. When you purchase a mutual fund, you are joining this group of investors. Mutual funds, unlike most other types of funds are open-ended. This means as more people invest in the fund, the fund can issue new units.
The list of fixed-income securities available to Canadians got a little shorter last month when the new Federal budget did away with Canada Savings Bonds. If you’re old enough to have been given Canada Savings Bonds by your grandmother like us, you may already have an idea what a fixed-income security is.
By definition a fixed-income security is…