The Canadian Imperial Bank of Commerce, commonly known as CIBC, is the fifth largest chartered bank in Canada. It was created through the 1961 merger of two Ontario-based banks, the Canadian Bank of Commerce and the Imperial Bank of Canada — the largest merger of two chartered banks in Canada’s history. Today, CIBC operates its business in Canada and abroad through three divisions: retail and business banking, wealth management, and capital markets. CIBC is a public company that trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol CM. In 2017, CIBC registered $16.3 billion in revenue and $4.7 billion in profit and held $565.3 billion in assets. The bank employs approximately 45,000 people, who serve 11 million customers.
Chartered banks, sometimes known as commercial banks, are public corporations that are licensed by the federal government to operate a banking business within Canada. By issuing these licenses (or charters), the Canadian government regulates and controls the country’s economy by influencing the amount, availability and distribution of money, and the terms or cost of accessing and distributing that money (interest rates). Chartered banks are regulated by the federal Bank Act and supervised by the Office of the Superintendent of Financial Institutions. Chartered banks in Canada accept deposits from the public and extend loans (such as mortgages) for personal, commercial, and other purposes. Banks also own and operate trust companies, securities dealers and insurance companies and offer such services as investment banking, international banking and more.
Nortel Networks Corporation, or simply Nortel, was a public telecommunications and data networking equipment manufacturer. Founded in 1895 as the Northern Electric and Manufacturing Company, it was one of Canada’s oldest technology companies. Nortel expanded rapidly during the dot-com boom (1997–2001), purchasing many Internet technology companies in a drive to remain competitive in the expanding information technology (IT) market. At its height in 2000, the company represented over 35 per cent of the value of Toronto’s TSE 300 index. It was the ninth most valuable corporation in the world and employed about 94,000 people worldwide at its peak. But Nortel soon entered an extended and painful period of corporate downsizing, and in 2009, the company filed for bankruptcy protection in the largest corporate failure in Canadian history. Shareholders, employees and pensioners suffered losses as a result. Company executives, however, were paid a total US$190 million in retention bonuses between 2009 and 2016. Nortel sold off its assets for a total US$7.3 billion. Those assets were scheduled to be distributed to Nortel’s bondholders, suppliers and former employees in 2017.
Real estate can refer to land itself (real property), including what grows or is built on the land; ownership of real property; and the real estate business, i.e., brokers, agents, builders, developers, property managers, mortgage lenders, investors, consultants and appraisers who work in the real estate industry. Real estate is commonly classified as residential (e.g., houses, condominiums, duplexes), rural (e.g., farms and ranches), commercial (e.g., shopping centres, apartments, office or industrial buildings) or institutional (e.g., churches, schools, hospitals or airports). Land without improvements is regarded as residential, rural, commercial or institutional according to its intended use.
Roots Corporation (better known as Roots or Roots Canada) is a publicly traded retail clothing business. It was co-founded by fashion designers and businessmen Michael Budman and Don Green, both from Detroit, Michigan. Budman and Green first met in 1962, when they were attending Camp Tamakwa in Ontario’s Algonquin Park. Following their graduation from Michigan State University, Budman moved to Canada in 1969 and Green followed a few years later in 1972. In 1973, Budman and Green began production of their version of the “negative heel” shoe — the first product sold under the Roots brand. That same year, on 15 August, the duo opened their first store in Toronto. Inspired by their early years at Algonquin Park, Budman and Green quickly made Roots, with its beaver logo and cottage feel, an iconic Canadian brand. In 2015, Budman and Green sold a majority stake to Searchlight Capital Partners, though the founders remain prominent shareholders. In October 2017, Roots made its initial public offering (IPO) in Canada, trading on the Toronto Stock Exchange under the symbol ROOT.
Unemployment is the unused supply of labour in the labour force. The unemployment rate measures unemployment and is expressed as a percentage of the total labour force, which is the total number of people who are 15 years of age and over who are either employed or unemployed. The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the labour force. The unemployment rate is considered an economic indicator, an economic statistic that is used to interpret or understand the health of an economy. There are several types of unemployment and their causes are often debated by economists. The unemployed are not a fixed collection of individuals but an ever-changing group, most of whom might be unemployed only briefly.
Money consists of anything that is generally accepted for the settlement of debts or purchase of goods or services. The evolution of money as a system for regulating society’s economic transactions represented a significant advancement over earlier forms of exchange based on barter, in which goods and services are exchanged for other goods or services. Canadian money has its roots in the Indigenous wampum belts of the East, the early currencies of European settlers and the influence of the United States.
A free trade area as defined by the General Agreement on Tariffs and Trade (GATT) is "a group of two or more customs territories in which duties and other restrictive regulations of commerce... are eliminated on substantially all the trade between the constituent territories in products originating in such territories."
The Canadian dollar, also known as the loonie, for the loon on the $1 coin, is the currency of Canada. Its international currency code is CAD and its symbol $, or C$, to distinguish it from other dollar currencies. As money, it is the measure of value in which all prices in Canada are expressed and the medium of exchange for goods and services. It is divided into 100 cents (¢) and available in material form as coins circulated by the Royal Canadian Mint and banknotes circulated by the Bank of Canada.
The global financial crisis that began in 2007 dragged much of the world economy into recession, and Canada was not spared. Although the effects on Canada were milder than on the United States and in Europe, the Canadian recession of 2008–09 was still severe enough to generate sharp declines in output and employment and to require significant responses by Canadian policy-makers.
The pulp and paper industry consists of manufacturing enterprises that convert predominantly woody plant material into a wide variety of pulps, papers and paperboards. The Canadian industry began in the 1800s, and has undergone revolutionary changes over the years. Most recently, the move from newsprint to electronic media caused the industry to decline; however, pulp and paper remains a fundamental part of the Canadian economy, especially for remote and northern communities.
Moosehead Breweries Limited, the maker of Moosehead Canadian Lager, is the oldest family-owned brewing company in Canada. Located in Saint John, New Brunswick, the company has been family owned and controlled for six generations and is currently led by founders Susannah and John Oland’s great-great-great grandson, Andrew Oland. Moosehead is the fourth largest brewing company in Canada — after Molson, Labatt and Sleeman — and the last major brewery to be owned by Canadians. Moosehead beer is sold throughout Canada, in many locations in the United States, and in 15 countries around the world. The company brews 20 beers under 10 brands, including its mainstay Moosehead Canadian Lager, as well as James Ready, Alpine, and Hop City. It also contract brews for six companies, including Samuel Adams, from the United States, and Estrella Damm, from Spain. Moosehead is a privately owned company and does not disclose its financial information; however, in 2017, market researchers estimated the company held as high as 3.8 per cent of the Canadian beer market and would generate $216 million in revenue.
The business cycle is a term used to describe the ups and downs of the economy over time. A business cycle consists of a repetition of four phases — expansion, peak, contraction, and trough — that is often called the boom-and-bust cycle. Most often a measure of change in a country’s gross domestic product (GDP), the business cycle is a tool used by investors and business managers to analyze the performance of the economy and to make spending and investment decisions. Though business cycles cannot be predicted, forecasting when an economy will expand or contract and knowing when key turning points have arrived is important for consumers and business. The wave pattern of a business cycle can be measured in length from peak to peak, or trough to trough, in terms of months and years. On average, cycles last just over 7 years, though there is no definitive time frame for how long they usually last.
Banking is a financial process carried out by an institution that accepts deposits, lends money and transfers funds. Canada's major banks play a vital role in the economy and today also engage in the insurance, trust and securities markets. Their business, the technology surrounding it and the regulations that govern it, have evolved continuously over the centuries.
Interest is the price charged to borrow money. Expressed as a rate, interest is a percentage of the amount of money borrowed (the principal amount) that is to be paid for an agreed period of time. Interest can be paid by a borrower to a lender (e.g., to a bank), but it can also be paid by a bank to individuals whose money the bank uses to lend money to other borrowers. In Canada, interest rates are determined by the policy of the Bank of Canada, the demand for loans, the supply of available lending capital, interest rates in the United States, inflation rates and other economic factors. The Bank of Canada helps the Canadian government manage the economy by setting the bank rate and controlling the money supply.
Manufacturing is a critical component of Canada’s economy. The production, sale and distribution of finished products contribute to consumer and labour markets, and secure Canada’s position as an economic leader among developed nations. Major, medium-sized and small manufacturers produce goods used by Canadians and contribute to the revenue gained from the export of goods to other countries. Since the early 2000s, the manufacturing sector in Canada has declined significantly in response to changes in the global economy and fewer regulatory controls over Canadian products (see Free Trade; Globalization). The composition and structure of the Canadian manufacturing industry is transitioning in response to these changes, aiming to produce new goods that are in greater demand.
In late October of 1929, terror seized the stock exchanges of North America. Capitalism’s speculative party, with its galloping share prices and its celebrity millionaires, came to an abrupt stop. The Great Crash, it was called, and it was followed by the Great Depression.
The distilling industry is that part of the food and beverage industries engaged in clarifying, flavouring, blending and aging alcohol to make potable spirits (eg, brandies, grain spirits, rum) and establishments which manufacture ethyl alcohol, whether they are or are not used in potable spirits.
A recession is a temporary period of time when the overall economy declines; it is an expected part of the business cycle. This period usually includes declines in industrial and agricultural production, trade, incomes, stock markets, consumer spending, and levels of employment. In purely technical terms, a recession occurs when two or more successive quarters (six months) show a drop in real gross domestic product (GDP), i.e., the measure of total economic output in the economy after accounting for inflation. In this sense, recessions are broad and can be particularly painful and challenging times for a country.
BlackBerry Limited (formerly Research In Motion) is a mobile communications company. Founded in 1984 by Mike Lazaridis and Doug Fregin in Waterloo, Ontario, the company released its first device — a pager capable of email — in 1999. Following the release of its first smartphone in 2002, BlackBerrys quickly became must-have pieces of technology, first among business people and later the general public. However, in the early 2010s they struggled to keep pace with the competitive smartphone market. In 2016, the company announced it would outsource all hardware production to other companies, instead focusing on software development. Today, BlackBerry is credited with putting Waterloo on the map as an innovation hub. The business trades under the ticker BB on the Toronto Stock Exchange and BBRY on NASDAQ.