7/1/25, 12:11 AM CISI Securities
CISI Securities Exam includes accurate and verified questions
covering core topics such as equity and debt instruments,
derivatives, financial markets, settlement and clearing, portfolio
management, and risk. Designed for candidates pursuing the CISI
authorised share capital? the maximum amount of capital that can be raised through a
share issue
issued share capital? the number of shares the company has allotted to shareholders
nominal value? fixed legal value of the share
shareholder risk? limited to NV
free float? actual number of shares that can be bought or sold
- excludes:
-> owners holding 5%+ or more of all shares
free float excludes?
-> restricted stocks
-> insider holdings e.g. directors
fully paid shares? NV paid, no future liability
fixed % of NV
dividend on preferred shares?
-> guaranteed amount, but payment not guaranteed
cumulative shares? the right to receive that dividend is rolled over into the next
period
participating shares? participate in the GOOD TIMES
redeemable shares? right for the issuer to buy back shares for NV in cash
convertible shares? right to convert into NEW SHARES
pay no income, redeemed by shareholder above issue price
zero dividend shares?
-> like bond, but not guaranteed (no default)
used by non-US companies to encourage US dollar investors to
ADRs? buy equity stake
shares: BRIT plc -> bank A -> depository -> US dollar investor
what happens to owners of receive cash
ADRs in rights issue?
https://quizlet.com/gb/978488777/cisi-securities-flash-cards/ 1/24
,7/1/25, 12:11 AM CISI Securities
pre-release (grey market secured by cash collateral for up to three months
rules) for ADRs?
Who is the legal owner of ADR depositary
shares?
Who is the beneficial owner US dollar investor
of ADR shares?
Are ADRs registered or registered
bearer?
Where can ADRs be traded? LSE, NYSE, NASDAQ
- right to subscribe for new shares from a company at a
fixed price on a future date (dilution)
what is a warrant? -> not part of ordinary share capital
- traded on stock exchange
warrant: conversion premium conversion premium = warrant price + exercise price - current
formula? share price
are warrants physically or physically settled contracts
cash settled?
issued by investment banks, right to buy existing shares (no
what are covered warrants?
dilution)
-> can have call and put
are covered warrants cash or can be both
physically settled?
difference between bank loan debt securities exchange traded
and debt securities?
what are money market debt securities with maturities < 1yr e.g. bills
instruments?
mid-dated debt securities
what are notes?
c. 2-5 yrs
what are bonds? generally more long term debt securities
- reward for lending money
coupon?
-% of NV
how often is a gilt coupon semi-annual coupon
paid?
day count for a gilt? actual/actual
how is the coupon on a gilt paid gross, taxable
paid?
settlement of a gilt? t+1
gilt - registered or bearer? registered
- coupon and redemption linked to an inflation index
index-linked bond?
- inflation protected
https://quizlet.com/gb/978488777/cisi-securities-flash-cards/ 2/24
, 7/1/25, 12:11 AM CISI Securities
what inflation index is an RPI
index-linked bond linked to?
TIPS? Treasury Inflation Protected Securities, US
who designates UK gilts as Debt Management Office
strippable?
- GEMMS
who is permitted to strip a - HM Treasury
gilt? - Bank of England
how many zero coupon 11 (double + 1)
bonds can a five year
strippable gilt be stripped
into?
benefit of stripped gilts? investors can precisely match their liabilities, removing any
reinvestment risk
OATs - registered or bearer? bearer
OATs - life? 2-50 yrs
https://quizlet.com/gb/978488777/cisi-securities-flash-cards/ 3/24
CISI Securities Exam includes accurate and verified questions
covering core topics such as equity and debt instruments,
derivatives, financial markets, settlement and clearing, portfolio
management, and risk. Designed for candidates pursuing the CISI
authorised share capital? the maximum amount of capital that can be raised through a
share issue
issued share capital? the number of shares the company has allotted to shareholders
nominal value? fixed legal value of the share
shareholder risk? limited to NV
free float? actual number of shares that can be bought or sold
- excludes:
-> owners holding 5%+ or more of all shares
free float excludes?
-> restricted stocks
-> insider holdings e.g. directors
fully paid shares? NV paid, no future liability
fixed % of NV
dividend on preferred shares?
-> guaranteed amount, but payment not guaranteed
cumulative shares? the right to receive that dividend is rolled over into the next
period
participating shares? participate in the GOOD TIMES
redeemable shares? right for the issuer to buy back shares for NV in cash
convertible shares? right to convert into NEW SHARES
pay no income, redeemed by shareholder above issue price
zero dividend shares?
-> like bond, but not guaranteed (no default)
used by non-US companies to encourage US dollar investors to
ADRs? buy equity stake
shares: BRIT plc -> bank A -> depository -> US dollar investor
what happens to owners of receive cash
ADRs in rights issue?
https://quizlet.com/gb/978488777/cisi-securities-flash-cards/ 1/24
,7/1/25, 12:11 AM CISI Securities
pre-release (grey market secured by cash collateral for up to three months
rules) for ADRs?
Who is the legal owner of ADR depositary
shares?
Who is the beneficial owner US dollar investor
of ADR shares?
Are ADRs registered or registered
bearer?
Where can ADRs be traded? LSE, NYSE, NASDAQ
- right to subscribe for new shares from a company at a
fixed price on a future date (dilution)
what is a warrant? -> not part of ordinary share capital
- traded on stock exchange
warrant: conversion premium conversion premium = warrant price + exercise price - current
formula? share price
are warrants physically or physically settled contracts
cash settled?
issued by investment banks, right to buy existing shares (no
what are covered warrants?
dilution)
-> can have call and put
are covered warrants cash or can be both
physically settled?
difference between bank loan debt securities exchange traded
and debt securities?
what are money market debt securities with maturities < 1yr e.g. bills
instruments?
mid-dated debt securities
what are notes?
c. 2-5 yrs
what are bonds? generally more long term debt securities
- reward for lending money
coupon?
-% of NV
how often is a gilt coupon semi-annual coupon
paid?
day count for a gilt? actual/actual
how is the coupon on a gilt paid gross, taxable
paid?
settlement of a gilt? t+1
gilt - registered or bearer? registered
- coupon and redemption linked to an inflation index
index-linked bond?
- inflation protected
https://quizlet.com/gb/978488777/cisi-securities-flash-cards/ 2/24
, 7/1/25, 12:11 AM CISI Securities
what inflation index is an RPI
index-linked bond linked to?
TIPS? Treasury Inflation Protected Securities, US
who designates UK gilts as Debt Management Office
strippable?
- GEMMS
who is permitted to strip a - HM Treasury
gilt? - Bank of England
how many zero coupon 11 (double + 1)
bonds can a five year
strippable gilt be stripped
into?
benefit of stripped gilts? investors can precisely match their liabilities, removing any
reinvestment risk
OATs - registered or bearer? bearer
OATs - life? 2-50 yrs
https://quizlet.com/gb/978488777/cisi-securities-flash-cards/ 3/24
