NSSC Blog: Before You Invest

Happy Holidays!

There's no new Before You Invest blog post this week or next week as we take a break for the holidays. Happy Holdays everyone, we’ll see you in 2020 with more investor education information!

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.