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csc volume 1 Questions and Answers Updated 2026

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csc volume 1 Questions and Answers Updated 2026

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csc volume 1 Questions and
Answers Updated 2026
cashMbasisMofMaccountingM-MAnswerMlessMthanM20%MofMaMsubsidiary



publicMfloatM-MAnswerM-
partMofMissuedMsharesMthatMareMoutstandingMandMavailableMforMtradingMbyMtheMpublic

-excludesMsharesMownedMinMlargeMblocksMbyMinstitutions.



numberMofMsharesMoutstandingMtoMbeMlowerMthanMtheMnumberMofMsharesMissuedM-
MAnswerMcompanyMredeemedMshares



advantageMforManMissuerMtoMuseMtheMShortMFormMProspectusMSystemM-
MAnswerMshortensMtheMtimeMperiodMbyMwhichMaMnewMissueMmayMbeMofferedMtoMthe
Mpublic



over-allotmentMoptionM-
MAnswerMdealerMinitiallyMsellsMmoreMstockMthanMtheMoriginalMofferMbyMtheMissuerMto
MtheMpublic



ceilingMimposedMonMtheMtotalMamountMofMbidsMforMaMgovernmentMbondMofferingMsub
mittedMbyManyMprimaryMdealerM-MAnswerM40%



yieldMwillMbeMawardedMtoMtheMfirmsMthatMsubmittedMaMnon-competitiveMtenderM-
MAnswerMaverageMofM5MsuccessfulMbids



allowMsignificantMnewsMtoMbeMreportedMandMwidelyMdisseminatedM-
MAnswerMtemporaryMhaltMonMtrading



3McharacteristicsMofMcapitalM-MAnswerMmobile

sensitiveMtoMtheMenvironment

scarce



factorsMthatMaffectMcapitalM-MAnswerMpoliticalM

economic

,fiscal

monetary

risk

labourMforce



onlyMsourceMofMcapitalMisM-MAnswerMsavings



retailMinvestorsM-
MAnswerMindividualMinvestorsMwhoMbuyMandMsellMsecuritiesMforMtheirMownMpersonalMa
ccounts,MandMnotMforManotherMcompanyMorMorganization



indirectMinvestmentM-
MAnswerMoccursMwhenMtheMsaverMbuysMtheMsecuritiesMissuedMbyMgovernmentsMandMc
orporations,MwhoMinMturnMuseMtheMfundsMforMdirectMproductiveMinvestment



governmentMmakesMuseMofMfourMmainMinstrumentsM-MAnswerMtreasuryMbills

marketableMbonds

canadaMsavingsMbondsM(CSBs)

canadaMpremiumMbondsM(CPB)



instalmentM/MserialMdebentures

municipalitiesMuseM_____MtoMspreadMlongMtermMprojectsMoverMseveralMyearsM-
MAnswerMinstalmentM/MserialMdebentures



3McomponentsMofMtheMfinancialMindustryM-MAnswerMmarkets

instruments

intermediaries



open-endMfund/MmutualMfundM-MAnswerM-
fundMraisesMcapitalMbyMsellingMshares/unitsMtoMinvestors

-
asMunitMholders,MinvestorsMreceiveMpartMofMtheMmoneyMmadeMfromMtheMfund'sMinvest
ments

,DerivativesM-
MAnswerMproductsMbasedMonMorMderivedMfromManMunderlyingMinstrumentMlikeMaMstoc
kMorMindex



MostMcommonMderivativesM-MAnswerMoptions

forwards



PrivateMEquityM-
MAnswerMfinancingMofMfirmsMunwillingMorMunableMtoMfindMcapitalMusingMpublicMmeasur
es



ventureMcapitalM-
MAnswerMinvestMwhenMbusinessMproduceMlittleMofMnoMcashMflow,MunprovenMtechnology
Metc.MandMhaveMlittle/MnoMcollateral



SeveralMmethodsMbyMwhichMprivateMinvestorsMfinanceMfirmsM-MAnswerMLBO

growthMcapitalM

turnaround

earlyMstageMVC

lateMstageMVC

distressedMdebt



distressedMdebtMacquisitionM-
MAnswerMpurchaseMofMdebtMsecuritiesMofMprivateMorMpublicMcompaniesMthatMareMtradi
ngMbelowMparMdueMtoMfinancialMtroublesMatMtheMfirm



privateMequityMinvestorsMareMtypicallyM-MAnswerM-PublicMpensionMplans

-PrivateMpensionMplans

-Endowments

-Foundations

-HighMnetMworthMinvestors

, RoleMofMprivateMequityMinMaMportfolioM-
MAnswerMreturnMenhancementM(rewardMforMacceptingMmuchMlowerMliquidityMtypicalMof
MprivateMequity)



portfolioMdiversification



efficientMmarketsM-MAnswerMspeedyMtransactions

lowMtransactionMcosts

highMdegreeMofMliquidity

effectiveMregulation



PrimaryMMarketM-MAnswerM-
NewMsecuritiesMareMsoldMbyMcompaniesMandMgovernmentsMtoMinvestorsMforMtheMfirstM
time.M

-
CompaniesMraiseMcapitalMbyMsellingMstocksMorMbondsMwhichMgovernmentsMraiseMcapital
MbyMsellingMbonds



SecondaryMMarketM-
MAnswerMInvestorsMtradeMsecuritiesMthatMhaveMalreadyMbeenMissuedMbyMcompaniesMan
dMgovernmentsM



InMthisMmarket,MbuyersMandMsellersMtradeMamongMeachMotherMatMaMpriceMthatMisMm
utuallyMbeneficialMtoMbothMparties.



InMauctionMmarketsM-
MAnswerMbuyersMenterMbidsMandMsellersMenterMoffersMforMaMstock



bidM-
MAnswerMHighestMpriceMaMbuyerMisMwillingMtoMpayMforMtheMsecurityMbeingMquoted



askM-MAnswerMlowestMpriceMaMsellerMwillMaccept



spreadM-MAnswerMdifferenceMbetweenMtheMbidMandMaskMprices

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