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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Common and Preferred Shares | 13% | - Equity Securities
|
| Topic 2: The Canadian Investment Marketplace | 15% | - Canadian Securities Industry
|
| Topic 3: The Economy | 13% | - Macroeconomic Fundamentals
|
| Topic 4: Derivatives | 10% | - Derivative Instruments
|
| Topic 5: Equity Transactions | 10% | - Trading Equities
|
| Topic 6: Corporations and their Financial Statements | 8% | - Financial Statement Analysis
|
| Topic 7: Financing and Listing Securities | 8% | - Security Issuance
|
| Topic 8: Pricing and Trading of Fixed-Income Securities | 11% | - Bond Markets
|
| Topic 9: Features and Types of Fixed-Income Securities | 12% | - Fixed-Income Instruments
|
1. Whataction is anexchange likely to take when the publicdistribution of a given securityhas dwindled to anunacceptablylow level?
A) Suspension in trading
B) Delisting
C) Hall in trading.
D) Delayed opening
2. What is the likely outcome attheend of a five-year term of a rate-reset preferred share if the issuer does not redeem the shares?
A) The shareholder exchanges the rate-reset preferredshare for a specified number ofcommon shares.
B) The shareholder exchanges the rate-reset preferred share for a fixed-rate preferred share.
C) The shareholder exchanges the rate-reset preferredshare for an unsecured bond
D) The shareholder exchanges the rate-reset preferred share for afloating-rate preferred share
3. A private company is working with an advisory firm To apply for a listing on a public exchange.
The management is concerned with the additional costs for the company Incurred by the listing and ongoing annual fees. What should management consider with regard to the costs and benefits of public listing?
A) The valuation of securities for estate tax purposes and estate tax punning will be easier
B) Management will benefit from the public disclosure of changes in the company.
C) Listing the company win attract new shareholders and increase the ability to raise capital.
D) Listing the company will require restrictions on stock options Issued for Internal use
4. What obligation dues an IA have when communicating informationabout a preliminary prospectus to prospectiveinvestors?
A) The IA must provide a greensheet
B) The IA must make a tombstone advertisement.
C) The IA mum record the names addresses of those who have requested and received a preliminary prospectus
D) The IA must ensure 3 proxy is mailed to the investors to vote for approval or disapproval of the offering.
5. What is the best way to measure the performance of stock indexes?
A) Share price changes
B) Relative value changes
C) Point changes
D) Percentage changes
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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