CANADIAN SECURITIES COURSE (CSC) STUDY GUIDE
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Market Activity Measures
Answer:
Measured by the variety and size of new issues, and depth and liquidity of trading.
Question:
2. Securities Regulation in Canada
Answer:
Regulated by the provinces through their own security commissions.
Question:
3. Canadian Investor Protection Fund (CIPF)
Answer:
Provides insurance against investment dealer and mutual fund dealer insolvency.
Question:
4. Primary Market Distribution
Answer:
The underwriting and distribution of new securities to transfer capital from suppliers to users.
Question:
5. Initial Public Offering (IPO)
Answer:
The first-time sale of stocks in the primary market by a private company going public.
Question:
6. Secondary Market
Answer:
Market where previously issued stocks or outstanding securities are traded (e.g., TSX).
Question:
7. Front Office Functions
Answer:
Portfolio management, trading, sales, and marketing.
Question:
8. Middle Office Functions
Answer:
Compliance, accounting, audits, and legal.
, Question:
9. Back Office Functions
Answer:
Settles the firm's security transactions (trade settlement).
Question:
10. Principal Transaction
Answer:
The investment dealer owns the securities; profit is the buy-sell price difference.
Question:
11. Agency Transaction
Answer:
The dealer acts as agent and never owns the security; profit is the commission.
Question:
12. Schedule 1 Chartered Banks
Answer:
Domestic banks where voting shares are widely held (single shareholder/group capped at 20%).
Question:
13. Schedule 2 Chartered Banks
Answer:
Federally regulated foreign bank subsidiaries operating in Canada.
Question:
14. Schedule 3 Chartered Banks
Answer:
Federally regulated foreign bank branches focusing on corporate and institutional finance.
Question:
15. Credit Unions & Caisses Populaires
Answer:
Cooperative banking institutions governed federally by the Cooperative Credit Associations Act.
Question:
16. Trust and Loan Companies
Answer:
The only corporations in Canada authorized to engage in trust business as trustees.
Question:
17. Closed-End Funds
Answer:
Investment funds that issue shares only at start-up or infrequent periods.
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Market Activity Measures
Answer:
Measured by the variety and size of new issues, and depth and liquidity of trading.
Question:
2. Securities Regulation in Canada
Answer:
Regulated by the provinces through their own security commissions.
Question:
3. Canadian Investor Protection Fund (CIPF)
Answer:
Provides insurance against investment dealer and mutual fund dealer insolvency.
Question:
4. Primary Market Distribution
Answer:
The underwriting and distribution of new securities to transfer capital from suppliers to users.
Question:
5. Initial Public Offering (IPO)
Answer:
The first-time sale of stocks in the primary market by a private company going public.
Question:
6. Secondary Market
Answer:
Market where previously issued stocks or outstanding securities are traded (e.g., TSX).
Question:
7. Front Office Functions
Answer:
Portfolio management, trading, sales, and marketing.
Question:
8. Middle Office Functions
Answer:
Compliance, accounting, audits, and legal.
, Question:
9. Back Office Functions
Answer:
Settles the firm's security transactions (trade settlement).
Question:
10. Principal Transaction
Answer:
The investment dealer owns the securities; profit is the buy-sell price difference.
Question:
11. Agency Transaction
Answer:
The dealer acts as agent and never owns the security; profit is the commission.
Question:
12. Schedule 1 Chartered Banks
Answer:
Domestic banks where voting shares are widely held (single shareholder/group capped at 20%).
Question:
13. Schedule 2 Chartered Banks
Answer:
Federally regulated foreign bank subsidiaries operating in Canada.
Question:
14. Schedule 3 Chartered Banks
Answer:
Federally regulated foreign bank branches focusing on corporate and institutional finance.
Question:
15. Credit Unions & Caisses Populaires
Answer:
Cooperative banking institutions governed federally by the Cooperative Credit Associations Act.
Question:
16. Trust and Loan Companies
Answer:
The only corporations in Canada authorized to engage in trust business as trustees.
Question:
17. Closed-End Funds
Answer:
Investment funds that issue shares only at start-up or infrequent periods.
