NSSC Blog: Before You Invest

Question of the Week: What is a promissory note?

A promissory note is a financial instrument that is a written promise from one party to pay back another party a set sum of money, either on demand or at a specific date in the future.

The promissory note contains all the terms of the borrower’s indebtedness. This includes the principal amount of the loan, any interest rate applied to the loan, the maturity date, and the date and place the note was issued.

Question of the Week – What affects the value of a stock?

One of our readers is a keen follower of the stock market. They aren’t heavily invested in stocks, but they enjoy monitoring the price of some local companies and some well-known blue chips. After observing some wide fluctuations and volatility over the years they want to know what factors affect the value of a stock?

Question of the Week – What is the consumer price index?

The consumer price index (CPI) is used to determine the changes in consumer prices experienced by Canadians. The CPI is determined by looking at the change in cost over time of a fixed basket of goods and services that are purchased by consumers. The basket always contains the same quality and quantity of goods which allows the CPI to reflect the pure price change.

Back to Basics: Finding an Adviser

There should be more involved in finding an adviser than simply choosing the first person you find when searching on Google. Choosing the right adviser for you takes some time and effort. After all, we’re talking about the person that you’ll be trusting with your money and your financial goals.

When looking for an adviser you may want to ask for referrals from friends or family, or start the search on your own. Either way make sure you can answer the following questions to your satisfaction.

Back to Basics: Robo-Advisers

A robo-adviser is a specific class of financial adviser that delivers financial advice or portfolio management online with very little human input. A robo-adviser develops its financial advice through algorithms. Using these algorithms, a robo-adviser manages a client’s portfolio based on their income, risk tolerance, financial goals and desired returns.

Back to Basics: Checking Registration

Now that you know all advisers need to be registered and that there are categories of registration, what do you do with this information? If you are going to do business with an adviser and put them in charge of your hard-earned money, you need make sure they are registered. Thankfully, the Canadian Securities Administrators (CSA) has made this very easy to do.