Qn 1. Name the Big 5 Banks in Canada. (5 Marks) Qn 2.

Name 5 broker accounts available in

Canada. (5 Marks) Qn 3. Look up a security you are interested in investing in on Yahoo Finance
and provide a risk assessment. Hint: list the pros and cons of the company and industry. (10
Marks) Briefly explain this question with enough information.

Qn 1. Name the Big 5 Banks in Canada. (5 Marks)

● The Royal Bank, The Bank of Montreal, The Canadian Imperial Bank of Commerce, The
Bank of Nova Scotia, and Toronto-Dominion Bank are the five biggest banks in Canada.
● The National Bank of Canada is the sixth bank in the phrase "Big Six Banks," which is
occasionally used. According to total assets, the Big Six Banks and Desjardins Group
are the biggest banks in Canada as of January 2021. The Five Big Banks are
headquartered in Toronto and have combined assets of more than $100 billion.

The five major banks in Canada—

1. Royal Bank of Canada

2. Toronto-Dominion Bank
3. Bank of Nova Scotia
4. Bank of Montreal
5. Canadian Imperial Bank of Commerce

Royal Bank of Canada

● In terms of capitalization ($132.5 billion in 2020) and net revenue ($11.4 billion in
2020), the Royal Bank of Canada is the largest of the Big Five. Over 1,300 branches,
over 86,000 full-time staff, and over 17 million customers worldwide make up The
Royal Bank of Canada. The lumber and forestry businesses were funded by the bank,
which was established in Halifax, Nova Scotia, in 1864. It was referred to as the
Halifax Merchants Bank.

Toronto-Dominion Bank

● The Toronto-Dominion Bank, the second-largest bank in Canada, has the biggest assets,
valued at C$1.7 trillion as of January 2021. This bank has more than 1,100 locations,
25,000 employees, and over 9.6 million customers globally. In 1955, the Bank of
Toronto and the Dominion Bank merged to form the bank.
Bank of Nova Scotia

● With assets assessed at C$1.1 trillion at year's end 2020, revenue of C$31 billion in
2020, and capitalization of C$67 billion, The Bank of Nova Scotia, also known as
Scotiabank, is Canada's second-largest bank. The bank has more than 900 locations
around the country, over 11 million customers in Canada, 10 million customers outside
of Canada, and 92,000 full-time employees. This bank provides trading on the Toronto
and New York Stock Exchanges.
The Nova Scotia bank, which was established in Halifax in 1832, relocated its
corporate headquarters to Toronto in 1900 to advance the transatlantic trade sector.

Bank of Montreal

● The Bank of Montreal, which has assets at $949 billion and revenue of C$25 billion at
the end of 2020, is the fourth-largest bank in Canada. The bank has about 900
locations and more than 8 million customers in Canada. As of Q2 2021, the bank had
over 42,000 workers across the globe. The Bank has continuously made dividend
payments despite crises including World War I, the Great Depression, World War II, and
the 2008 Global Financial Crisis.

Canadian Imperial Bank of Commerce

● The Canadian Imperial Bank of Commerce has 770 billion dollars in assets, C$18.7
billion in projected revenue for 2020, and C$44 billion in capitalization. Over 44,000
full-time workers and 1,100 branches across Canada comprise the bank's global
clientele of over 11 million. The Canadian Bank of Commerce and the Imperial Bank of
Canada amalgamated to become the bank in 1961.

Qn 2. Name 5 broker accounts available in Canada.

● There are several choices available to Canadians who want to invest in the stock
market online. Online brokers are available in a variety of flavors, from full service to
deeply discounted, while some are renowned for their trading tools or research.
● The Toronto Stock Exchange (TSX), the 11th largest in the world with more than $3
trillion in total assets, is frequently mentioned when it comes to investing in Canada.
The NYSE and NASDAQ markets in the United States, which are the biggest and second
biggest in the world, respectively, are often accessible to Canadians who want to trade
stocks.
Here are the top brokers for trading stocks in Canada.

1. Questrade- 4.5 Stars - Best Overall

2. Qtrade Direct Investing - 4.5 Stars - Best for Research
3. Interactive Brokers- 4.5 Stars - Best for Professionals
4. TD Direct Investing - 4 Stars - Diverse Trading Tools
5. CIBC Investor's Edge - 4 Stars - Transparent Fees
6. Wealthsimple - 3.5 Stars - Best for Low Costs

1. Questrade ( Best Overall )

● The top discount broker in Canada is Questrade. It provides a fantastic balance of
trading platforms, markets, and services, including several account types. If you live in
Canada or if you have clients from other countries who want to trade regional stock
exchanges in Canada and the United States, Questrade is a great option.

Following are our top discoveries on Questrade:

● With no yearly fees, commission-free ETF trades, and discounts for active traders,
Questrade offers clear pricing.
● With the desktop-based and web-based systems IQ Edge and IQ Web, Questrade offers
a complete selection of solutions.
● Canadian citizens have access to a wide range of retirement account options through
Questrade. Clients outside of Canada cannot access Questrade Portfolio IQ accounts,
and U.S. citizens are not supported.

Commissions and fees

For trading stocks, options, and ETFs, Questrade has two pricing choices:

1. Active Trader pricing and

2. Self-Directed Investing pricing (the default).

Pricing for self-directed investing: For most investors, Questrade's regular pricing is the best
value.

● The lowest fee for trading stocks is $4.95, and the maximum fee is $9.95 if you trade
995 shares or more. Stocks cost $0.01 per share.
● ETFs have a similar structure, except when you buy an ETF you are not charged; only
when you sell. With a set rate of $9.95 plus a $1 fee each contract, trading options is
more expensive.
 ● Last but not least, ETF trades are advertised as commission-free to acquire, but incur
a $4.95 cost when you sell on the fixed plan; with the variable plan pricing, you pay 1
cent per share with a maximum commission of $6.95.

Pricing for the Questrade Active Trader program:

● Customers must sign up for at least one advanced market data offering before
choosing between the variable or fixed-rate pricing plan. The price to trade stocks is
$0.01 per share, with a $0.01 minimum and $6.95 maximum (variable plan), or a flat
$4.95 per trade (fixed plan).
● If you trade more than 495 shares, the variable pricing is not a good option. Similarly,
if you trade options, the cost is $6.95 + $0.75 per contract (variable plan) or $4.95 +
$0.75 per contract (fixed plan).

Data subscriptions and rebates:

● Depending on how much you spend in commissions, Questrade offers a range of

discounts on monthly market data packages. The money may also be refunded.
● If you purchase either Advanced data package, you can access active trader pricing.
However, unless your trading strategy depends on the data or you spend enough on
commissions to cover the cost, it might not be worthwhile.
● Consider the U.S. Data for levels 1 and 2 (as well as level 1 in Canada) costs $89.95 a
month and is completely refunded if you spend more in commission than $399.95.
● The good news is that Level 1 real-time data is available for free with all accounts if
you don't require Level 2 depth of market data. However, if you spend $48.95 in
commission each month, you can upgrade to improved streaming data for $19.95 each
month.

Questwealth Portfolios

● Questwealth Portfolios are pre-built investment products by Questrade Wealth

Management that are only available to Canadian residents. They have an annual
management charge of 0.25% or 0.20% if you invest more than $100,000.
● Questrade portfolios are made for long-term holdings and passive investors, such as
retirement accounts. To determine if the fees are appropriate for you, you must weigh
them against the historical and projected returns, among other things.

2. Qtrade Direct Investing ( Best for Research )

● $8.75 per trade. Qtrade Direct Investing shines for its user-friendly website and
all-around client experience. While Questrade has the upper hand with its trading
 platform, Qtrade provides a more robust stock research center and portfolio analysis
tools.

3. Interactive Brokers ( Best for Professionals )

● ($1 minimum / 0.5% maximum of trade value) 0.005 per share. Our top
recommendation for professionals is Interactive Brokers due to its desktop trading
platform, which is designed for institutions. In addition to professionals, Interactive
Brokers' Client Portal web trading platform also caters to novice investors.
● In our 2023 evaluation of online brokers, Interactive Brokers came out on top for
professional and active trading, trading internationally, platform technology, ESG
investing, futures trading, and our newest category, sentiment investing. Professionals
frequently choose Interactive Brokers, or IBKR, for its institutional-grade desktop
trading platform, excellent trade executions, and extremely low margin rates. But
IBKR also boasts several features that regular investors will value, like a collection of
top-notch mobile apps.

Pros Cons
 ● Interactive Brokers
offers an incredible
variety of tools,
investment options, and
research that are
extremely customized.
● IBKR permits holding
various currencies and
dealing on foreign
exchange markets.
● The use of mobile apps
is practical for retail
investors.
● When it comes to trading permits, Interactive
Brokers is highly stringent.
● Retail investors may find IBKR somewhat
inconvenient due to its emphasis on institutional
clientele. For instance, logging in needs
cumbersome two-factor authorisation, and
retrieving a stock quote frequently involves more
steps than simply entering in the ticker.
● Many investors may feel unwelcoming toward
IBKR's primary platforms. They don't have the
icons, stock images, business logos, or extensive
color schemes found at other brokers. Thankfully,
Global Trader and Impact, two of its mobile apps,
are quite user-friendly but only have basic
features.

Investment options

● The most comprehensive selection is offered by Interactive Brokers, which also

dominates other categories, including international trading. Customers can transact on
more than 135 international markets spread over 33 nations globally.

Cryptocurrency: In 2021, Interactive Brokers expanded its services to include trading

cryptocurrencies. Through their integrated account, traders may now trade Bitcoin,
Ethereum, Litecoin, and Bitcoin Cash.

Forex: Before flying abroad, do you want to lock in a favorable exchange rate or diversify
your assets to avoid the erratic U.S. dollar? No issue. At IBKR, you may convert currencies
quickly and affordably, which is something you won't find at many other brokers. We enjoy it.
(If you're interested in trading forex, check out our sister site, ForexBrokers.com, for the IBKR
review.)
Other: American investors now have the option to trade spot gold at Interactive Brokers in
increments of only one ounce. Numerous micro and small-sized futures contracts have also
been added. These agreements provide more people access to the futures markets, similar to
small crude oil futures.

Commissions and fees

● The two main pricing tiers offered by Interactive Brokers are IBKR Pro (intended for
professionals) and IBKR Lite (for casual investors). It is critical to offer the most
affordable commission schedule because experienced traders and institutional
investors, such as hedge funds, make up the majority of Interactive Brokers' clientele.
It is clear from our thorough evaluation that Interactive Brokers meets expectations.
Among the Best in Class for Active Trading in 2023 is Interactive Brokers.
● IBKR Lite: IBKR Lite has the same price as IBKR Pro for options trades, and there are no
market data fees on any U.S. stock or ETF trading (see below). The biggest
disadvantage of using IBKR Lite is the worse order executions. Payment for Order Flow,
or PFOF, is how Interactive Brokers, like other $0 brokers, makes money under IBKR
Lite. IBKR Lite is primarily intended for novice traders and investors.
● IBKR Pro stock trades: Interactive Brokers is a great option for orders under a thousand
shares. Even with its tiered pricing structure, which starts at $.0035 per share ($1
minimum), Interactive Brokers soon gets expensive when trading a few thousand
shares or more. The majority of us trading 50 shares of Amazon or Apple shouldn't be
concerned with this, but institutions are willing to pay it in exchange for the ability to
transfer enormous blocks of stock without upsetting the markets.
● Trades involving IBKR Pro options: Commissions for each option contract are tier-based
on U.S. exchanges that utilize Interactive Brokers' SMART routing. With a $1 minimum
and no maximum, any premium over $0.10 equals $0.65 per contract. The charge is
$0.50 per contract for premiums that are in the $0.05 to $0.10 range. Finally, the rate
is $0.25 per contract for premiums below $0.05. Other advantages of IBKR Pro include
the fact that Interactive Brokers does not charge for order flow, a crucial component
of offering good order execution. Additionally, Interactive Brokers has the lowest
margin rates in the market.
● Mutual funds: Over 46,000 mutual funds, including over 11,000 in the United States,
are offered by Interactive Brokers globally. The typical price is the smaller of 1.5% of
the trade value or $14.95, which is a good deal compared to most other brokers. At
least 4,000 of the U.S. mutual funds are ticket charge-free.

Since IBKR Pro charges a per-share commission, it is not a good option for trading penny
stocks.

Mobile trading apps

 ● Retail investors have access to three mobile apps, each with a specific purpose. IBKR
Mobile is the most feature-rich app in the IBKR mobile app suite.
● Global Trader: Beginners and investors in foreign stock will find a very friendly
experience at the new-in-2022 Global Trader app, which allows fractional stock trades,
options trading, and convenient access to foreign shares. IBKR Mobile includes almost
everything professionals need to trade on the go, from lightning-quick streaming data
to full-featured order entry and portfolio management. The design is welcoming, and
the layout is practical. Compared to many other beginner-focused brokers, we favor
Global Trader. We believe Interactive Brokers has a winner on its hands and anticipate
seeing this app grow in functionality over time.
● Impact: The ESG (environmental, social, and governance) investing-focused Impact
app asks you to select values that are significant to you, such as support for animal
protection or clean water. As a result, you can find businesses that share those beliefs
and even "exchange" positions in your portfolio with a single transaction. Based on the
values selected, your Impact dashboard will show an A-F rating for your portfolio.
● Charting: IBKR Mobile's charting is feature-rich, with simple tweaks and 70 selectable
indicators. However, several capabilities, such stock and/or index comparisons, are
missing that one may anticipate.

4. TD Direct Investing ( Diverse Trading Tools )

● $9.98 for each trade. With its WebBroker and Advanced Dashboard platforms, TD
Direct Investing—the priciest broker in our review—offers investors a wide range of
trading tools and research. TD App, the broker's mobile app, offers a similarly
streamlined user experience.

5. CIBC Investor's Edge ( Transparent Fees )

● $6.95 for each trade. CIBC Investor's Edge is a good option to take into consideration if
you're a casual investor seeking for low-cost trades and are willing to utilize a broker
without all the frills. The broker stands out for having clear account fees and
uniformly low trading charges.

6. Wealthsimple ( Best for Low Costs )

● Each transaction costs nothing. Wealthsimple is a fantastic option for long-term

investors who wish to set it and forget it or trade more passively. Within the
framework of its Wealthsimple Invest platform, Wealthsimple provides a managed
robo-advisor solution.
Top Takeaways for 2023

● The results of our testing of Wealthsimple are as follows:

1. With its ultra-basic Wealthsimple Trade web platform suite (not accessible in the U.K.)
and robo-advisor Wealthsimple Invest, Wealthsimple is comparable to the Robinhood of
Canada and the U.K., providing an easy alternative for less demanding investors.
2. The Enviromental Social Governance (ESG) rankings that are frequently employed in
the industry are not as "green" as Wealthsimple's own low-cost index funds (TSX: WSRI
and WSRD), which are offered in addition to the broker's robo-advisor service.
3. Although educational content is of a high caliber, it lags below peers in scope and
variety, and there is very little research available, including no economic calendars,
analyst ratings, or updates on news headlines.

Commissions and fees

● Depending on the type of account you open and whether you are a Canadian or a
British citizen, Wealthsimple will charge you different commissions and fees.
Depending on your location, you can choose which entity to utilize. Because
Wealthsimple Trade is unavailable in the United Kingdom, Wealthsimple Invest is the
only robo-advisor available there.
● Self-directed trading is free of commissions. There is a management fee if you utilize
Wealthsimple Invest, a robo-advisor, which is a managed account. This fee is
calculated as an annual percentage rate of your balance. Depending on the size of
your account, the cost fluctuates.
● U.K. Individual accounts aren't the only type of accounts Wealthsimple U.K. offers a
pension, an ISA, and a JISA account as three different forms of retirement accounts.
● Residents of Canada: Wealthsimple Canada provides five different types of retirement
and other tax-efficient accounts, including registered retirement savings plans
(RRSPs), tax-free savings accounts (TFSAs), registered education savings plans (RESPs),
registered retirement income funds (RRIFs), and locked-in retirement accounts, in
addition to individual, joint, and business accounts (LIRA).
● Early in 2022, Wealthsimple added a Canadian resident-only Plus account that is
subscription-based. Snap quotes (real-time pricing), the option to hold U.S. dollars,
and quick deposits up to $5,000 are all included in the $10 monthly cost (compared to
$1,500 for the basic account).

Mobile trading

● Wealthsimple has two mobile trading apps:

 1. Wealthsimple Trade, for more active, self-directed investors (note that Trade is not
accessible in the U.K.), and
2. Wealthsimple Invest, a robo-advisor solution for ultra-passive investors.
● Wealthsimple Invest: This robo-advisor software from Wealthsimple enables you to set
up automated deposits as well as recurring investments. You can even round up change
on credit card purchases to the nearest dollar and have the difference automatically
invested for you.
● Your particular investment preferences are taken into account when managing the
investment portfolio. The only drawback is that, depending on how much money you
deposit into a Wealthsimple Invest account, trading expenses, in the form of a
management fee, ranging from 0.40% to 0.50% every year.
● Wealthsimple Trade: In comparison to the top mobile apps offered by other online
stockbrokers, the Wealthsimple Trade app appears to be quite lightweight. Even yet,
there is a lot to say about its sleek, contemporary appearance, which is obviously
geared for novice and more passive investors.
● If you haven't already funded your account, Wealthsimple Trade will ask you to do so
before you can begin researching. The Wealthsimple Trade app includes a purposely
basic universal watchlist, so let's get started there. You can customize this by adding
or removing symbols as you see fit, but you cannot create numerous watchlists. The
app is designed to keep you focused on a few key points: buying securities by
searching for a specific symbol or selecting one from a predefined list. As a result, the
watchlist columns may not contain as much information as other watchlist columns,
which may help prevent overwhelming inexperienced investors with too much
information. There are curated lists available to choose from, which is the opposite
side of having few options to create your watchlist. Again, Wealthsimple Trade's too
simplistic watchlist structure enables the broker to quickly deliver nearly 50 premade
lists for different industries and theme-specific industries, such as cannabis, "top
Canadian" companies, featured stocks of the day, or the most well-liked app stocks.
Additionally, there are lists like top gainers and losers, which is a feature I was happy
to find was included.

No stock screeners: Stock screeners, which let you set your own criteria to look for
comparable symbols, are something that would be a step above the listings function but aren't
offered by Wealthsimple. Notably, you won't even be aware that these restrictions exist unless
you want to create custom screens or numerous custom watchlists.
Real-time snap quotes are only available if you upgrade to the new Plus account, which comes
with a $10 monthly fee. Market data on Wealthsimple Trade is delayed by default. Overall, I'm
not clear why someone would require real-time data given the app's strong emphasis on
long-term investing, as there are almost any tools for trading with market timing or intraday
charts.
Charts: Wealthsimple Trade only offers a few time frames for customizing the default line
chart when it comes to charting. On the Wealthsimple Trade charts, there is literally nothing
you can do other than select one of six time frames, including daily, weekly, monthly,
quarterly, annual, or five-year time frames.
Intraday vs. long-term: By purposefully excluding time frames shorter than one day (such as
hourly, 30-minute, and 10-minute charts), the Wealthsimple Trade app intentionally directs
your attention to longer-term time horizons; however, I was disappointed that other chart
types, like a traditional bar-chart or candlestick chart, weren't available. These are almost
always present on platforms that support active trading and market-timing strategies. Adding
more detail to the charts would seem to be beneficial for Wealthsimple Trade users since
even a passive investor may want to examine a securities on a more detailed time scale when
investing for the long term.
Order Types: In addition to market and limit orders, I was happy to find the Stop Limit order
type, which can be used to specify a stop price that works as a trigger for a second Limit
order, similar to an OTO order. In situations when you want to enter the market at a particular
price or better, but only if another price is first attained, such orders may be useful. On the
other hand, you are unable to trade options or short stocks at Wealthsimple.

Qn 3. Look up a security you are interested in investing in on Yahoo Finance and provide a risk
assessment. Hint: list the pros and cons of the company and industry. (10 Marks) Briefly
explain this question with enough information.

● Thorough investigation is always necessary. However, investing for the long term,
taking advantage of dividends, and picking stocks with a track record of performance
are important ways to protect your money. Risky and aggressive trading tactics should
be reduced or avoided unless you have the time.
● It could appear simple to take your money and place it in various investment vehicles.
But it might be quite difficult to succeed as an investor. Every year, a lot of amateur
investors—those who aren't financial professionals—lose money. There may be a lot of
causes, but there is one that every investor with a profession outside of the stock
market is aware of: They lack the time and the resources to thoroughly examine a big
number of stocks.
● The lesson here is that if you don't conduct enough research, you'll wind up losing
money. The bad news is that. The good news is that by paying attention to some
important investing factors, you can reduce your losses as well as the quantity of
research you need to complete. Below, you may read more about the five
fundamentals of investing.

Key takeaways:

1. Fully investigate businesses to learn what they do, where they do it, and how.
2. Look at the company's price-to-earnings ratio, which compares the share price to
earnings per share.
3. You can find out how risky a stock is by looking at a company's beta in relation to the
rest of the market.
4. Invest in equities with a high yield if you want to put your cash in a safe place.
5. Despite the difficulty of interpreting charts, try to find some of the simplest cues,
such as changes in the stock's price.

1. S&P Futures
4,019.75-13.00(-0.32%)
2. Dow Futures
33,764.00-62.00(-0.18%)
3. Nasdaq Futures
11,841.75-67.75(-0.57%)
4. Russell 2000 Futures
1,891.60-3.20(-0.17%)
5. Crude Oil
80.17+0.04(+0.05%)
6. Gold
1,928.50-6.90(-0.36%)
7. Silver
23.64-0.11(-0.46%)
8. EUR/USD
1.0885+0.0002(+0.0147%)
9. 10-Yr Bond
3.46900.0000(0.00%)
10. Vix
19.20-0.61(-3.08%)
11. GBP/USD
1.2325-0.0002(-0.0187%)
12. USD/JPY
130.4440+0.2790(+0.2143%)
● You can connect your brokerage account to your Yahoo Finance account if it is
supported. Only in the US are all Yahoo Finance platforms equipped with the
brokerage connecting feature.
● Investors' desire to make as much money as they can in the shortest amount of time is
a natural part of human nature. However, this drive for quick, large profits frequently
tempts investors to make speculative investments by encouraging them to take on
excessive risk.
● Unfortunately, investors frequently ignore the fact that these identical products may
often destroy wealth more quickly than it can be created. Here is a look at some
popularly discussed risky or subpar investments that are rarely the best option for
 long-term investors. Every bad decision has a superior alternative that can typically
offer a considerably higher risk-adjusted return.

1. Risky: Over-the-Counter Stocks

Penny stocks, usually referred to as over-the-counter stocks, are unregistered securities that
are not traded on a stock market. As a result, information concerning them might be elusive
and market manipulation is a common occurrence.
Sure, you can reap tremendous rewards quickly if you're on the right side of this. However,
the chances of such are extremely slim, and the majority of OTC stocks rely more on hopes
and ambitions than on solid financials. Choosing OTC stocks is comparable to casino gambling.

Better Option: Fractional Shares

● You can no longer use the low price of penny stocks as an excuse if that is what draws
you to them. Fractional shares of stock can now be purchased from several brokerage
firms. This implies that you can now buy 0.67 shares even if you only have $100 to
spend and want to buy a stock at, say, $150 per share.
● Even while there are no assurances that your particular stock will increase in value, at
least you'll be able to decide on it with knowledge. You can purchase fractional shares
of a wide market fund, such as an S&P 500 index fund, if you'd prefer to take a more
diversified strategy.

2. Risky: Cryptocurrency

● Cryptocurrency has always had its detractors, with many experts claiming that it was
constructed on flimsy foundations and will eventually implode. The markets gave this
theory a lot of support in 2022 when some tiny cryptocurrencies virtually disappeared
and major cryptocurrencies dropped more than 50%.
● While some contend that the big cryptocurrencies will return and that this is only a
"crypto winter," that's a speculative claim based largely on faith. Cryptocurrencies are
only sustained by the hope that they will eventually replace fiat currencies, or at the
very least coexist with them on an equal basis, unlike the stock market, which rests its
value on actual earnings and revenues.

Better Option: Alternative Investments

● Consider alternate investments if you desire the excitement of a "frontier-type"

investment but don't want to use cryptocurrencies. Private equity shares, collectibles
 like fine art, wine, or playing cards, as well as commodities like oil and pork bellies,
are some examples of these.
● Although they can be cyclical and extremely volatile, these assets have intrinsic worth
that cryptocurrency does not yet have.

3. Risky: Meme Stocks

● Despite having a "more respectable" appearance than penny stocks, meme stocks trade
similarly. Meme stocks are typically despised, massively shorted companies with
genuine financial issues; nonetheless, they can quickly gather momentum based on the
advice of short-term traders on financial message boards.
● It is at best speculative to evaluate these types of stocks, which recently have
included GameStop, AMC, and Bed Bath & Beyond, as that type of support could go at
any time.

Better Option: Aggressive Growth Stocks

● Despite having some similarities to meme stocks in terms of high risk/high reward,
aggressive growth stocks are fundamentally different.
● A diversified portfolio that includes a few high-octane stocks can increase your
long-term profits, though you shouldn't invest all of your money in aggressive equities
unless you have a very high risk tolerance.

4. Risky: Leveraged ETFs

● Leveraged ETFs give investors the chance to achieve returns that are 2 or 3 times
those of an underlying investment, such as the performance of the S&P 500 index.
These instruments are solely intended for short-term traders, despite possibly seeming
nice on paper.
● Leveraged ETFs may be handy for short-term trading, but they are lousy investments
for long-term investors because of how leveraged ETFs are structured and how their
value depreciates over time.

Better Option: Straight Investments

● Simply acquire more of an investment if you're feeling really positive about it. Simply
add to positions you believe in rather than leveraging yourself through a mysterious,
challenging investment.
 ● Keep in mind that if you purchase a 3x leveraged ETF and you are incorrect, a market
decline of 16-17% will put you 50% in the red, necessitating a 100% return merely to
break even.

5. Risky: Junk Bonds

● The term "junk bonds" has a specific meaning. Even seasoned mutual funds or pension
funds are frequently prohibited from purchasing these bonds since they fall below
"investment grade" bonds in the market.
● Individual investors typically lack the knowledge to identify the winning investments,
even though professional bond traders may use them to increase their earnings. Even if
you succeed, the few extra percentage points you might gain won't probably make the
risk worthwhile.

Better Option: Investment-Grade Bonds or Preferred Stocks

● You can invest in bonds or preferred stocks from better-rated corporations rather than
junk issuers for just a small reduction in income. In exchange, your chance of
experiencing default will be greatly reduced.
● Even while this sort of investment carries additional risks like interest rate and
inflation risk, you will almost certainly get interest and principal payments over the
long term.

REFERENCES USED:

1. The Big Five: Here Are Canada's Largest Banks by Total Assets
https://cutt.ly/q9xtTYK
2. Best Canadian Brokers for Stock Trading https://cutt.ly/e9xtAZg
3. 5 Essentials You Need to Know About Every Stock You Buy
https://cutt.ly/x9xtZMe
4. Yahoo Finance https://cutt.ly/A9xt0wx
5. 5 Investment Risks That Often Lose Money — and Investing Alternatives for
Each https://cutt.ly/Z9xt6Ue