Free Canadian Securities Course Exam 2 Practice Questions

A.  

Industry growth matches the overall rate of economic growth.

B.  

Price competition increases between companies.

C.  

Demand for industry products is stable.

D.  

Company earnings-to-invested capital rates are above average.

A.  

The sale price less the exercise price of the rights.

B.  

The current share price less the exercise price of the rights.

C.  

The sale price of the rights.

D.  

The current price of the shares less the sale price of the rights.

A.  

Proffered shares

B.  

Provincial saving bond

C.  

Common shares

D.  

Exchange-traded fund.

A.  

The portfolio does not closely resemble the benchmark index.

B.  

Investors must take greater risks due to a high portfolio beta.

C.  

passively management fund can be marketed as actively managed.

D.  

High portfolio turnover makes it unsuitable for taxable accounts

A.  

Assessing market shifts and staying informed of changes in a client ' s goals.

B.  

Evaluating portfolio performance and confirming the stage of the economic cycle.

C.  

Reviewing the industry trends and evaluating portfolio performance.

D.  

Assessing changes in a client ' s goals and setting a strategic asset allocation.

A.  

Individual investor buying shares on an exchange during the ex-rights period.

B.  

Interest rate forward agreement between an investment dealer and a corporation.

C.  

Exchange-traded equity option contract between an individual investor and a dealer.

D.  

Individual investor entering future contract with an institutional investor.

A.  

Frequent meetings with the advisor are required

B.  

Higher trading fees due to the one-on-one client-advisor relationship

C.  

Clients must approve all trades

D.  

Lack of customization to client needs

A.  

Level of tax rates.

B.  

Level of inflation.

C.  

Level of short-term interest rates.

D.  

Time required to approve tax legislation.

A.  

To busy securities in the market on demand to maintain liquidity in a security.

B.  

To maintain constant contact with the investment dealer counterparties.

C.  

To inform the trade about the market conditions and risks.

D.  

To provide pertinent market information to the department heads of various asset classes.

A.  

History repeats itself.

B.  

Fiscal policy, monetary policy and inflation may be analyzed.

C.  

The movements in price movements must be studied.

D.  

The profitability of the issuer is paramount.