CSC Exam 1: Core Concepts in Canadian Securities and
Financial Markets
asset is higher than the strike price or lower for put option - correct answer ✔✔in the money
the daily settlement of futures gains and losses - correct answer ✔✔Marking to market
Difference between strike price and current market value of stock. - correct answer ✔✔intrinsic
value
An option that can be exercised only on the expiration date - correct answer ✔✔European style
option
1200 1 option is 100 - correct answer ✔✔how many shares do i get in 12 call options
very regulated, cash settled every day, fairly standard contracts - correct answer ✔✔exchange
derivative market
less regulated, can be specific for organizations, settled at the end of the contract - correct
answer ✔✔OTC Derivatives market
if you buy a put option you are Putting on the market so you are buying the option to sell -
correct answer ✔✔Put Option
Act on behalf of clients as agents - correct answer ✔✔Role of Investment Dealer
something like PIC or Dominion Securities - correct answer ✔✔Retail investment Dealer
, Itrade - correct answer ✔✔Self Directed Brokerage
Front/ middle/ back office- / sales, trading, marketing/compliance, accounting/ trade
settlement - correct answer ✔✔Integrated Investment Firm breakdown
A transaction in which a broker/dealer either buys securities from customers and takes them
into its own inventory or sells securities to customers from its inventory. - correct answer
✔✔Principal Transaction
A transaction in which a broker-dealer acts for the accounts of others by buying or selling
securities on behalf of customers. - correct answer ✔✔Agency Transaction
domestic canadian bank like scotia - correct answer ✔✔Schedule 1 bank
very similar to schedle 1 bank but dont do all the same shit example would be AMEX bank of
canada - correct answer ✔✔schedule 2 bank
These institutions are foreign-owned banks that have been given permission to conduct
business in Canada. They are not incorporated with the bank act, and operate under
restrictions. Examples include UBS, Deutsche Bank, Barclays, and Capital One. - correct answer
✔✔schedule 3 banks
shares can only be bought at start up/ secondary market, typically a fixed number - correct
answer ✔✔close end fund
mutal fund that has unlimited number of shares - correct answer ✔✔open end fun
buying something physical, a house, building a highway - correct answer ✔✔Direct investment
Financial Markets
asset is higher than the strike price or lower for put option - correct answer ✔✔in the money
the daily settlement of futures gains and losses - correct answer ✔✔Marking to market
Difference between strike price and current market value of stock. - correct answer ✔✔intrinsic
value
An option that can be exercised only on the expiration date - correct answer ✔✔European style
option
1200 1 option is 100 - correct answer ✔✔how many shares do i get in 12 call options
very regulated, cash settled every day, fairly standard contracts - correct answer ✔✔exchange
derivative market
less regulated, can be specific for organizations, settled at the end of the contract - correct
answer ✔✔OTC Derivatives market
if you buy a put option you are Putting on the market so you are buying the option to sell -
correct answer ✔✔Put Option
Act on behalf of clients as agents - correct answer ✔✔Role of Investment Dealer
something like PIC or Dominion Securities - correct answer ✔✔Retail investment Dealer
, Itrade - correct answer ✔✔Self Directed Brokerage
Front/ middle/ back office- / sales, trading, marketing/compliance, accounting/ trade
settlement - correct answer ✔✔Integrated Investment Firm breakdown
A transaction in which a broker/dealer either buys securities from customers and takes them
into its own inventory or sells securities to customers from its inventory. - correct answer
✔✔Principal Transaction
A transaction in which a broker-dealer acts for the accounts of others by buying or selling
securities on behalf of customers. - correct answer ✔✔Agency Transaction
domestic canadian bank like scotia - correct answer ✔✔Schedule 1 bank
very similar to schedle 1 bank but dont do all the same shit example would be AMEX bank of
canada - correct answer ✔✔schedule 2 bank
These institutions are foreign-owned banks that have been given permission to conduct
business in Canada. They are not incorporated with the bank act, and operate under
restrictions. Examples include UBS, Deutsche Bank, Barclays, and Capital One. - correct answer
✔✔schedule 3 banks
shares can only be bought at start up/ secondary market, typically a fixed number - correct
answer ✔✔close end fund
mutal fund that has unlimited number of shares - correct answer ✔✔open end fun
buying something physical, a house, building a highway - correct answer ✔✔Direct investment
