IFIC Study Guide – Chapter 1: Overview of
Financial Markets and Institutions
First investment funds available to the general public. Consist of domestic and foreign
government bonds. - correct answer ✔✔Fixed Trusts
Corporations whose business is making investments. The firm would issue shares to investors
and use the proceeds to create an investment portfolio. After the initial issue of shares, the fund
is closed to other investors. - correct answer ✔✔Closed-End Funds
Mutual fund units are always available from the fund to meet the purchasing demands of
investors without restriction. Mutual funds are only available for purchase through a fund
company or financial institution and do not trade on a stock exchange. - correct answer
✔✔Open-ended mutual funds
Legal, Ethical, Professional - correct answer ✔✔Types of Responsibility
Make legal responsibilities clear, An investment is suitable if its the client's goals, financial
condition, personal circumstances, investment knowledge and risk tolerance. All provincial
securities act make this legal responsibility clear. - correct answer ✔✔Legal Responsibility
You must place your client's needs before your own needs (such as reaching a sales target) or
those of your dealer. - correct answer ✔✔Ethical Responsibility
You must provide the best client service possible. - correct answer ✔✔Professional
Responsibility
Financial Markets and Institutions
First investment funds available to the general public. Consist of domestic and foreign
government bonds. - correct answer ✔✔Fixed Trusts
Corporations whose business is making investments. The firm would issue shares to investors
and use the proceeds to create an investment portfolio. After the initial issue of shares, the fund
is closed to other investors. - correct answer ✔✔Closed-End Funds
Mutual fund units are always available from the fund to meet the purchasing demands of
investors without restriction. Mutual funds are only available for purchase through a fund
company or financial institution and do not trade on a stock exchange. - correct answer
✔✔Open-ended mutual funds
Legal, Ethical, Professional - correct answer ✔✔Types of Responsibility
Make legal responsibilities clear, An investment is suitable if its the client's goals, financial
condition, personal circumstances, investment knowledge and risk tolerance. All provincial
securities act make this legal responsibility clear. - correct answer ✔✔Legal Responsibility
You must place your client's needs before your own needs (such as reaching a sales target) or
those of your dealer. - correct answer ✔✔Ethical Responsibility
You must provide the best client service possible. - correct answer ✔✔Professional
Responsibility
