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CANADIAN SECURITIES (CSC) TEST 1 QUESTIONS WITH CORRECT ANSWERS

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CANADIAN SECURITIES (CSC) TEST 1 QUESTIONS WITH CORRECT ANSWERS

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Confirmation


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the document that a dealer sends to the client when a transaction is made
(at the latest, by the next day).




Instalment GIC

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an initial lump sum contribution is made for these GICs, with further
minimum contributions made weekly, bi-weekly, or monthly.




ICE Exchange


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where agricultural options and futures in Canada are traded.




Equity electronic trading system


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competes with existing exchanges. They can only trade stocks that are on
an existing exchange. They may have benefits such as different hours,
better commission, etc.




MFDA IPC (Mutual Fund Dealers Association Investor Protection Corporation)


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provides protection for eligible customers of insolvent MFDA member
firms.
General acct. = $1M total
Separate acct. = $1M each

,OSFI (Office of the Superintendent of Financial Institutions)


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the federal regulatory agency whose main responsibilities regarding
insurance companies and segregated funds are to ensure that the
companies issuing the funds are financially solvent.




Bourse de Montreal (Montreal Exchange)


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where all options and futures in Canada are traded.




Coincident indicators


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change at the same time as the market - GDP.




Dividend Reinvestment Plan (DRIP)


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, an investment plan that allows the investor to automatically reinvest stock
dividends in the same company's stock without paying any brokerage fees




Special Purchase and Resale Agreements (SPRAs)


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an open-market operation by the Bank of Canada used to relieve
undesired upward pressure on overnight financing rates. Used to stimulate
the economy.




Gatekeeper


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protects markets from potentially illegal client activity by collecting
information, monitoring activity, and reporting suspicious behaviour.




Negotiable bonds


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bonds that are in "good delivery form" (easy to transfer ownership). In some
ways, this is an antiquated concept (where bonds were physical). All bonds
that trade on the market today are considered to be in "good delivery
form".

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