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CANADIAN SECURITIES COURSE EXAM
QUESTIONS AND 100%CORRECT
ANSWERS (ALREADY GRADED A+) |
UPDATED
What does an Investment Dealer do? - Correct-Answer-Acts as
intermediaries between investors and users of capital.
When a Investment Dealer is acting as Primary, what are they doing? -
Correct-Answer-Selling securities from their own inventory. Make
money via spread/underwriting.
When an investment dealer is acting as agents, what are they doing? -
Correct-Answer-Facilitating a trade between a buyer and seller, without
owning the security. They make money via commissions.
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What are the three types of Investment dealers? - Correct-Answer-
Retail firms, Institutional firms, and Integrated firms.
Give a brief description of retail firms. - Correct-Answer-Includes full
service investment dealers and self directed brokers.
Give a brief description of Institutional firms. - Correct-Answer-They
serve institutional clients and organizations that trade large volumes
like pension funds.
Give a brief description of Integrated firms. - Correct-Answer-Offer
products and services that participate in both retail and institutional
markets. Most firms underwrite debt and equity issues and are active in
the secondary markets.
What are the roles of front, middle, and back offices of an investment
dealer firm? - Correct-Answer-Front Office: Portfolio management,
Trading, Sales, Marketing.
Middle Office: Compliance, Accounting, Audits, Legal
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Back Office: Trade settlement.
What services do investment dealers provide? - Correct-Answer-They
provide advice about new issues, They act as market makers, They buy
stocks as principal becoming more competitive in serving their
institutional clients, They add liquidity to secondary markets which
enhances the primary markets.
What is a Market Maker - Correct-Answer-A trader that maintains
liquidity in securities markets by taking large positions to enhance
liquidity and sooth out price distortions.
What does the Clearing and Depository Services (CDS) do? - Correct-
Answer-It clears security transactions daily using a process called
netting to establish and confirm a credit or debit position.
What are the three types of chartered banks? - Correct-Answer-
Schedule I,II, & III banks
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Describe Schedule I Banks - Correct-Answer-Banks such as TD, RBC.
They offer loans, savings and deposits from businesses and consumers.
They also sell mutual funds and other investment options, and
mortgages.
Describe Schedule II Banks - Correct-Answer-Such as Citi Canada, AMEX
Canada. Are foreign bank subsidiaries, They do everything schedule I
banks do plus commercial loans to business, issue financial paper in
money markets, take deposits for businesses and sell mutual funds and
other investments.
Describe Schedule III Banks - Correct-Answer-Such as Deutsche,
Comerica. Most are full service foreign bank branches of foreign banks
and accept deposits, not usually lending.
What type of bank has strict ownership rules? - Correct-Answer-
Schedule I banks ( a single shareholder cannot own more than 20%).
CANADIAN SECURITIES COURSE EXAM
QUESTIONS AND 100%CORRECT
ANSWERS (ALREADY GRADED A+) |
UPDATED
What does an Investment Dealer do? - Correct-Answer-Acts as
intermediaries between investors and users of capital.
When a Investment Dealer is acting as Primary, what are they doing? -
Correct-Answer-Selling securities from their own inventory. Make
money via spread/underwriting.
When an investment dealer is acting as agents, what are they doing? -
Correct-Answer-Facilitating a trade between a buyer and seller, without
owning the security. They make money via commissions.
, Page |2
What are the three types of Investment dealers? - Correct-Answer-
Retail firms, Institutional firms, and Integrated firms.
Give a brief description of retail firms. - Correct-Answer-Includes full
service investment dealers and self directed brokers.
Give a brief description of Institutional firms. - Correct-Answer-They
serve institutional clients and organizations that trade large volumes
like pension funds.
Give a brief description of Integrated firms. - Correct-Answer-Offer
products and services that participate in both retail and institutional
markets. Most firms underwrite debt and equity issues and are active in
the secondary markets.
What are the roles of front, middle, and back offices of an investment
dealer firm? - Correct-Answer-Front Office: Portfolio management,
Trading, Sales, Marketing.
Middle Office: Compliance, Accounting, Audits, Legal
, Page |3
Back Office: Trade settlement.
What services do investment dealers provide? - Correct-Answer-They
provide advice about new issues, They act as market makers, They buy
stocks as principal becoming more competitive in serving their
institutional clients, They add liquidity to secondary markets which
enhances the primary markets.
What is a Market Maker - Correct-Answer-A trader that maintains
liquidity in securities markets by taking large positions to enhance
liquidity and sooth out price distortions.
What does the Clearing and Depository Services (CDS) do? - Correct-
Answer-It clears security transactions daily using a process called
netting to establish and confirm a credit or debit position.
What are the three types of chartered banks? - Correct-Answer-
Schedule I,II, & III banks
, Page |4
Describe Schedule I Banks - Correct-Answer-Banks such as TD, RBC.
They offer loans, savings and deposits from businesses and consumers.
They also sell mutual funds and other investment options, and
mortgages.
Describe Schedule II Banks - Correct-Answer-Such as Citi Canada, AMEX
Canada. Are foreign bank subsidiaries, They do everything schedule I
banks do plus commercial loans to business, issue financial paper in
money markets, take deposits for businesses and sell mutual funds and
other investments.
Describe Schedule III Banks - Correct-Answer-Such as Deutsche,
Comerica. Most are full service foreign bank branches of foreign banks
and accept deposits, not usually lending.
What type of bank has strict ownership rules? - Correct-Answer-
Schedule I banks ( a single shareholder cannot own more than 20%).
