Canadian Securities Exam (Part 1) questions with answers

Canadian Securities Exam (Part 1) questions |\ |\ |\ |\ |\ |\




with answers |\




Function a firm performs when underwriting new issues - CORRECT
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ANSWERS ✔✔Principal
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What is underwriting? - CORRECT ANSWERS ✔✔Firm buys issues
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from government body or new company, and holds them as
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inventory, selling them to public for profit
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What type of firm sells to retail and institutional clients a full
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offering of services? - CORRECT ANSWERS ✔✔Integrated firm
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Whos in charge of clearing? - CORRECT ANSWERS ✔✔CDSX uses
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process called netting for member brokers on TSX
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What can schedule II banks do? - CORRECT ANSWERS
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✔✔Everything a schedule I bank can do, make profits from retail
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banking and electronic banking services
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Most important activity in the insurance business - CORRECT
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ANSWERS ✔✔Underwriting |\




What do sales finance companies do? - CORRECT ANSWERS
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✔✔contracts from new cars or appliances on installments
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, Successful and knowledgeable investor, has inherited $200,000
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and wants to create a diversified portfolio while minimizing costs.
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What do you recommend? - CORRECT ANSWERS ✔✔self-directed
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broker (trade for client but no advice)
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What is an annuity? - CORRECT ANSWERS ✔✔grows at fixed rate
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and pays out investor throughout time
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Non-financial domestic corporations contributions - CORRECT |\ |\ |\ |\ |\ |\



ANSWERS ✔✔not significant source of capital to economy because
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reinvested
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Dealer market examples - CORRECT ANSWERS ✔✔-bond and
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debenture markets |\




-transactions between principals (market makers) |\ |\ |\ |\




-dealers trading over phone and computer
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-less regulation
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-high volume |\




-no listing requirements
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-prices sometimes not visible
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Auction market examples - CORRECT ANSWERS ✔✔-TSX
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-transactions between brokers acting as agents for buyers/sellers
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-listing requirements |\




-CUB