knowledge topics
Labour Sponsored Venture Capital Corporations
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define a labour-sponsored venture capital corporation.†
- Identify that a labour-sponsored venture capital corporation require a securities license in order for an individual to act in furtherance of a trade.
- Identify that a labour-sponsored venture capital corporation must be approved by the securities administrator of the province/territory in which they are traded.
- Explain how each of the factors may impact the suitability of a labour-sponsored venture capital corporation, such as:
- Time horizon
- Volatility
- Risk tolerance
- Investment objective
- Financial situation
- Personal situation
- Income
- Liquidity
- Control
- Tax impact
- Investment management process
- Economic cycle
- Cost
- Historical performance
- Performance expectations
- Evaluate how each of the factors may impact the suitability of a labour-sponsored venture capital corporation.
- Explain for whom a labour-sponsored venture capital corporation may be suitable.
- Interpret the return for a labour-sponsored venture capital corporation.
- Explain the tax credit(s) available for investment in a labour-sponsored venture capital corporation.
- Estimate the tax credit(s) available for a labour-sponsored venture capital corporation.
- Estimate the after-tax cost (based on asset location) of investing in a labour-sponsored venture capital corporation.
- Explain risks that may affect a labour-sponsored venture capital corporation.
† Labour sponsored venture capital corporations may also be known as labour-sponsored investment funds.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
