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CSC1 Practice Questions

Canadian Securities Course Exam 1

Last Update 3 days ago
Total Questions : 100

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Question # 21

What is the impact of a stock split on the number of shares held by the shareholders and theirprice?

Options:

A.  

The number of shares Increases and theshare price Increases.

B.  

The number of shares decreases and the share price eases

C.  

The number of shares decreases and the share price decreases.

D.  

The number of shares increases and the share price decreases.

Discussion 0
Question # 22

What obligation dues an IA have when communicating informationabout a preliminary prospectus to prospectiveinvestors?

Options:

A.  

The IA must ensure 3 proxy is mailed to the investors to vote for approval or disapproval of the offering.

B.  

The IA must provide a greensheet

C.  

The IA must make a tombstone advertisement.

D.  

The IA mum record the names addresses of those who have requested and received a preliminary prospectus

Discussion 0
Question # 23

What is the mostcost-effectivechannel an investor can use to Invest in derivativeproducts?

Options:

A.  

A self-director broker

B.  

A full-service broker

C.  

An integrated firm

D.  

An investment boutique

Discussion 0
Question # 24

What is the settlement date for Government of Canada bones?

Options:

A.  

One business day after the transaction

B.  

same day me transaction takes place.

C.  

Two business days after the transaction

D.  

Three business days after the transaction.

Discussion 0
Question # 25

Which investment dealer category do discount brokers belong to?

Options:

A.  

Institution firms

B.  

Retail firms

C.  

Integrated firm

D.  

Boutique firms

Discussion 0
Question # 26

Which statutory right allowsa purchaser to caned their order if a prospectus has a misrepresentation?

Options:

A.  

Right of rescission.

B.  

Right of action for damages

C.  

Right of amended prospectus delivery

D.  

Right of withdrawal.

Discussion 0
Question # 27

Under which circumstance is an option considered to be in-the-money?

Options:

A.  

When a call option with the price of the underlying asset is lower than the strike price.

B.  

When a put option with the price of the underlying asset is higher than the strike price.

C.  

When a put option with the price of the underlying asset is higher than the strike price.

D.  

When a put option with the price of the underlying asset is higher than the strike price.

Discussion 0
Question # 28

What is the action that the CentralBank takes to limitthe impact of increased foreign Interestrates on Interest rates in Canada?

Options:

A.  

Decrease interest rate to balance the risk of rising inflation.

B.  

Reduce Interest rales to reduce demand for borrowing.

C.  

increase short-term interest rates to maintain the value of currency.

D.  

Add a default premium to interest rates to protect lenders.

Discussion 0
Question # 29

What is a company likely trying -c achieve when ituses a stock spit as part of itscorporate strategy?

Options:

A.  

increase the share price

B.  

Decrease the share price

C.  

Prevent delisting from a stock exchange

D.  

Fewer outstanding shares

Discussion 0
Question # 30

What type of unemployment is caused by normal labour turnover such as completing school or changing employment?

Options:

A.  

Natural

B.  

Structural

C.  

Cyclical

D.  

Frictional

Discussion 0
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