The Investment Industry Regulatory Organization of Canada (IIROC) is now offering an online resource that helps people understand how trading works on stock exchanges and Alternative Trading Systems (ATSs).

The guide is free, and is a good tool for people who want to understand the ins and outs of trading securities (stocks, ETFs, etc.) on equity marketplaces. There are six easy-to-navigate lessons, with each offering a quiz to test your knowledge. The lessons introduce you to:

  • Canadian equity marketplaces
  • The different types of orders you can place when trading on a marketplace
  • How to place the orders and how they are filled
  • Your dealer’s duties to you
  • Your responsibilities when you are trading on an equity marketplace

It takes about 10 to 15 minutes to complete each lesson, and you can come back to do the modules at your leisure. If you wish, you can also repeat modules until you understand the concepts. There is no requirement to finish one lesson to be able to move on to another.

The concepts in the guide should help all types of investors – new and experienced investors, those who trade with the assistance from an investment advisor, and self-directed investors who trade through an online brokerage.

We are often asked at trade shows or seminars about the types of courses are out there for people who want to learn more about trading and investing. We usually suggest the Canadian Securities Course (CSC), but it requires a time and financial commitment.

For those looking for an overview of how equity markets work, this tool is a nice alternative to get your feet wet. These modules are also good for people, like myself, who passed the CSC and need a refresher.

Mixing this knowledge with other information that is available on other investor education websites, will go a long way in helping you understand how equity markets work.
 

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