CISI SECURITIES EXAM 2025 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|NEWEST|LATEST UPDATE
|GUARANTEED PASS
What is underwriting in finance?(4)
Underwriting is when a financial institution agrees to purchase shares from a company if there
is not enough demand from the public.
What are the different roles within a syndicate for a securities offering?(4)
- Book runner: The lead underwriter responsible for managing the offering and coordinating the
efforts of the other underwriters in the syndicate.
- Co-lead: An underwriter that shares responsibility with the book runner for managing the
offering.
- Co-manager: An underwriter that helps sell the securities and may have some responsibility
for the marketing of the offering.
- Marketing: The underwriters responsible for promoting the securities offering to potential
investors.
- Book-building: The underwriters responsible for collecting indications of interest from
potential investors to help determine the offering price.
What are the requirements to be admitted to the Official List in the UK?(4)
-Minimum expected market capitalisation of £30m,
- Trading record of at least three years
- At least 10% of the company's shares must be in public hands
What are the requirements to be admitted to AIM in the UK?(4)
Must appoint a nominated adviser and a broker
1|Page
, What are the requirements to be admitted to The General Standard segment in the Frankfurt
Stock Exchange?(4)
- Valid and audited securities prospectus,
- A reporting history dating back at least three years,
- A probable total price value of at least €1.25 million,
- Free float of at least 25%
How does a offer for sale and offer for subscription differ? (4)
Offer for subscription is where a company offers new shares to the public can subscribe to these
shares directly to the company whereas, offer for sale is when existing share holders sell their
shares to the public.
What is an OTF? (5)
Organized Trading Facility, is a multilateral system where multiple parties can come together to
buy and sell financial instruments such as stocks, bonds, and derivatives
What is an MTF?(5)
Multilateral Trading Facility, is another type of multilateral system where financial instruments
are traded.
What is a dark pool?(5)
A dark pool is a private venue where buyers and sellers can trade financial instruments without
disclosing their identities or the details of the transactions. They are called "dark" because the
trades are not visible to the public.
What is a quote-driven system?(5)
A quote-driven system is a trading system where market makers provide quotes for buying and
selling securities, and traders can transact at the quoted prices.
What is an order-driven system?(5)
An order-driven system is a trading system where buy and sell orders from traders are matched
by the system to execute trades at the best available price.
What is the main difference between quote-driven and order-driven systems?(5)
The main difference is who provides liquidity in the market. In a quote-driven system, market
makers provide liquidity by standing ready to buy or sell securities at quoted prices, while in an
order-driven system, liquidity is provided by market participants who place buy and sell orders
that are matched by the system.
2|Page
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|NEWEST|LATEST UPDATE
|GUARANTEED PASS
What is underwriting in finance?(4)
Underwriting is when a financial institution agrees to purchase shares from a company if there
is not enough demand from the public.
What are the different roles within a syndicate for a securities offering?(4)
- Book runner: The lead underwriter responsible for managing the offering and coordinating the
efforts of the other underwriters in the syndicate.
- Co-lead: An underwriter that shares responsibility with the book runner for managing the
offering.
- Co-manager: An underwriter that helps sell the securities and may have some responsibility
for the marketing of the offering.
- Marketing: The underwriters responsible for promoting the securities offering to potential
investors.
- Book-building: The underwriters responsible for collecting indications of interest from
potential investors to help determine the offering price.
What are the requirements to be admitted to the Official List in the UK?(4)
-Minimum expected market capitalisation of £30m,
- Trading record of at least three years
- At least 10% of the company's shares must be in public hands
What are the requirements to be admitted to AIM in the UK?(4)
Must appoint a nominated adviser and a broker
1|Page
, What are the requirements to be admitted to The General Standard segment in the Frankfurt
Stock Exchange?(4)
- Valid and audited securities prospectus,
- A reporting history dating back at least three years,
- A probable total price value of at least €1.25 million,
- Free float of at least 25%
How does a offer for sale and offer for subscription differ? (4)
Offer for subscription is where a company offers new shares to the public can subscribe to these
shares directly to the company whereas, offer for sale is when existing share holders sell their
shares to the public.
What is an OTF? (5)
Organized Trading Facility, is a multilateral system where multiple parties can come together to
buy and sell financial instruments such as stocks, bonds, and derivatives
What is an MTF?(5)
Multilateral Trading Facility, is another type of multilateral system where financial instruments
are traded.
What is a dark pool?(5)
A dark pool is a private venue where buyers and sellers can trade financial instruments without
disclosing their identities or the details of the transactions. They are called "dark" because the
trades are not visible to the public.
What is a quote-driven system?(5)
A quote-driven system is a trading system where market makers provide quotes for buying and
selling securities, and traders can transact at the quoted prices.
What is an order-driven system?(5)
An order-driven system is a trading system where buy and sell orders from traders are matched
by the system to execute trades at the best available price.
What is the main difference between quote-driven and order-driven systems?(5)
The main difference is who provides liquidity in the market. In a quote-driven system, market
makers provide liquidity by standing ready to buy or sell securities at quoted prices, while in an
order-driven system, liquidity is provided by market participants who place buy and sell orders
that are matched by the system.
2|Page
