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CSC2 Canadian Securities Course Exam 2 is now Stable and With Pass Result | Test Your Knowledge for Free

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CSC2 Practice Questions

Canadian Securities Course Exam 2

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Total Questions : 232

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Question # 51

Who generally executes portfolio strategy within a buy-side firm?

Options:

A.  

Portfolio manager.

B.  

Head of fixed income

C.  

Investment advisor.

D.  

Trader

Discussion 0
Question # 52

What type of investment typically involves massive amounts of capital provided by a small number of investors?

Options:

A.  

Derivatives

B.  

Infrastructure

C.  

Bonds

D.  

Commodities

Discussion 0
Question # 53

Which exchange trades all financial and equity futures and options listed for trading in Canada?

Options:

A.  

ICE NGX Canada

B.  

Canadian Securities Exchange

C.  

Montreal Exchange

D.  

Toronto Stock Exchange

Discussion 0
Question # 54

What happens if a company ' s dividend payout ratio exceeds 100%?

Options:

A.  

The company will be unable to repay its debts

B.  

Profits will be reduced

C.  

Shareholders ' equity will be eroded

D.  

The share price will increase

Discussion 0
Question # 55

What item compares the expected return of the market portfolio to the riskless rate?

Options:

A.  

Beta

B.  

Risk premium

C.  

Alpha

D.  

Variance

Discussion 0
Question # 56

When a company issues a number of common shares, some of which are held by institutional investors, what are the institutional investors ' shares known as?

Options:

A.  

Market capitalization shares.

B.  

Outstanding shares.

C.  

issued shares

D.  

Public float shares.

Discussion 0
Question # 57

How can an analyst use trend analysis to analyze a company’s financial statements?

Options:

A.  

Computer the company’s current ratios with its ratios from prior years to determine a trend.

B.  

Review the company’s ratio over the past year, as they provide the best estimate of near-term performance and future trends.

C.  

Identity trends by selecting the lowest ratio for the base year, even if a loss is experienced, as it represents a good starting point for analyzing the growth in the ratios.

D.  

Analyze the ratios against companies in a wide a range of industries to see how the company is trending in the current economic cycle.

Discussion 0
Question # 58

What is a characteristic of provincial savings bonds that distinguishes them from other provincial bonds?

Options:

A.  

They are backed by provincial assets pledged an security.

B.  

They can & e purchased only by residents of the province.

C.  

They can be purchased at any time of the year.

D.  

They do not have redemption rules.

Discussion 0
Question # 59

What is typically discussed during the establishment of the client-advisor relationship step?

Options:

A.  

The client ' s investment goals.

B.  

The current financial and personal status.

C.  

By what means does the client prefer to communicate with the advisor.

D.  

What services will the advisor provide.

Discussion 0
Question # 60

In March of this year, a client buys 1,000 PIL inc, common shares at $16 per share and pays a commission of $25 on the purchase. Several months later in the same year, the client sell the shares at $12 per share and pays commission of $50 on the sale. What is the client’s allowable capital loss on the transaction?

Options:

A.  

$2,038

B.  

$2,025

C.  

$1,925

D.  

$2,013

Discussion 0
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