Canadian Securities Course Exam questions with correct answers

Canadian Securities Course Exam questions |\ |\ |\ |\ |\




with correct answers |\ |\




What does an Investment Dealer do? - CORRECT ANSWERS
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✔✔Acts as intermediaries between investors and users of capital.
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When a Investment Dealer is acting as Primary, what are they
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doing? - CORRECT ANSWERS ✔✔Selling securities from their own
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inventory. Make money via spread/underwriting. |\ |\ |\ |\




When an investment dealer is acting as agents, what are they
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doing? - CORRECT ANSWERS ✔✔Facilitating a trade between a
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buyer and seller, without owning the security. They make money
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via commissions.
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What are the three types of Investment dealers? - CORRECT
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ANSWERS ✔✔Retail firms, Institutional firms, and Integrated firms.
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Give a brief description of retail firms. - CORRECT ANSWERS
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✔✔Includes full service investment dealers and self directed |\ |\ |\ |\ |\ |\ |\ |\



brokers.


Give a brief description of Institutional firms. - CORRECT ANSWERS
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✔✔They serve institutional clients and organizations that trade
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large volumes like pension funds.
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,Give a brief description of Integrated firms. - CORRECT ANSWERS
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✔✔Offer products and services that participate in both retail and
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institutional markets. Most firms underwrite debt and equity issues |\ |\ |\ |\ |\ |\ |\ |\



and are active in the secondary markets.
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What are the roles of front, middle, and back offices of an
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investment dealer firm? - CORRECT ANSWERS ✔✔Front Office: |\ |\ |\ |\ |\ |\ |\ |\



Portfolio management, Trading, Sales, Marketing.
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Middle Office: Compliance, Accounting, Audits, Legal
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Back Office: Trade settlement.
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What services do investment dealers provide? - CORRECT
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ANSWERS ✔✔They provide advice about new issues, They act as
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market makers, They buy stocks as principal becoming more
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competitive in serving their institutional clients, They add liquidity |\ |\ |\ |\ |\ |\ |\ |\ |\



to secondary markets which enhances the primary markets.
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What is a Market Maker - CORRECT ANSWERS ✔✔A trader that
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maintains liquidity in securities markets by taking large positions
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to enhance liquidity and sooth out price distortions.
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What does the Clearing and Depository Services (CDS) do? -
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CORRECT ANSWERS ✔✔It clears security transactions daily using a
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process called netting to establish and confirm a credit or debit
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position.


What are the three types of chartered banks? - CORRECT
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ANSWERS ✔✔Schedule I,II, & III banks |\ |\ |\ |\ |\

,Describe Schedule I Banks - CORRECT ANSWERS ✔✔Banks such as
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TD, RBC. They offer loans, savings and deposits from businesses
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and consumers. They also sell mutual funds and other investment
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options, and mortgages. |\ |\




Describe Schedule II Banks - CORRECT ANSWERS ✔✔Such as Citi
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Canada, AMEX Canada. Are foreign bank subsidiaries, They do
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everything schedule I banks do plus commercial loans to business,
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issue financial paper in money markets, take deposits for
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businesses and sell mutual funds and other investments. |\ |\ |\ |\ |\ |\ |\




Describe Schedule III Banks - CORRECT ANSWERS ✔✔Such as
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Deutsche, Comerica. Most are full service foreign bank branches of
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foreign banks and accept deposits, not usually lending.
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What type of bank has strict ownership rules? - CORRECT
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ANSWERS ✔✔Schedule I banks ( a single shareholder cannot own
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more than 20%).|\ |\




What is a credit union? - CORRECT ANSWERS ✔✔They often cater
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to member-savers from common interest groups and provide
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deposit taking services, lending, mortgages, insurance, mutual
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funds, debt and credit cards.
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What role do insurance companies play in the financial markets? -
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CORRECT ANSWERS ✔✔They offer term deposits and GIC's,
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segregated funds and other investment products. |\ |\ |\ |\ |\

, What is the most important aspect of insurance companies? -
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CORRECT ANSWERS ✔✔Underwriting (the business of evaluating
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risk).


What other things do insurance companies have to offer? -
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CORRECT ANSWERS ✔✔Life insurance, home, auto, and
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commercial insurance. |\




What is a trust company? - CORRECT ANSWERS ✔✔They act as a
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trustee in charge of corporate and individual assets such as
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property. stocks, and bonds. |\ |\ |\




What is the purpose of an investment fund? - CORRECT ANSWERS
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✔✔They are companies or trusts that sell shares or units to the
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public and invest the proceeds in a diverse securities portfolio.
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What are the two types of government-related pension funds? -
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CORRECT ANSWERS ✔✔Defined Benefit (provides employees with
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a pre-determined specified payment amount when they retire) and
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Defined Contribution plans (Allows employees to contribute to a
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plan that invests funds over time).
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What is a Robo-Advisor? - CORRECT ANSWERS ✔✔It provides
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clients with advice with goal based online investment
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management, creates portfolios using algos based on theory and |\ |\ |\ |\ |\ |\ |\ |\ |\



questions. Usually built with ETF's. |\ |\ |\ |\