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CSI CSC1 Exam Syllabus Topics:

SectionWeightObjectives
Equity Transactions10%- Order types and execution
- Margin and short selling
- Trading mechanics and regulations
The Economy13%- Impact of economic factors on investments
- Monetary and fiscal policy
- Macroeconomic principles and indicators
Pricing and Trading of Fixed-Income Securities11%- Price-yield relationship
- Valuation and pricing methods
- Trading and settlement processes
Common and Preferred Shares13%- Equity features and rights
- Valuation and classification
- Dividends and corporate actions
Derivatives10%- Uses, risks and basic strategies
- Options, futures and forwards
Features and Types of Fixed-Income Securities12%- Characteristics, risks and benefits
- Government and corporate bonds
- Types of fixed-income instruments
Regulation and Ethics8%- Code of conduct and ethical standards
- Industry regulations and compliance
- Client suitability and disclosure
Financing and Listing Securities7%- Primary market and issuance process
- Listing requirements and rules
The Canadian Investment Marketplace16%- Regulators and self-regulatory organizations
- Market participants and roles
- Structure of Canadian financial system

CSI Canadian Securities Course Exam 1 Sample Questions:

1. Which derivatives transactionhas the greatest default risk?

A) Exchange-traded equity option contract between an individual investor and a dealer.
B) Individual investor buying shares on an exchange during the ex-rights period.
C) Individual investor entering future contract with an institutional investor.
D) Interest rate forward agreement between an investment dealer and a corporation.


2. An investor feels unfairly treatedby a stockbroker regarding a setof transactions. After a discussion of the situation Between the investor and the member, the investor and the member, the investor is still dissatisfied.
What is the best requestthat the investor could make to seek compensation?

A) A payment from the Canadian investor Protection Fund.
B) An investigation by the Ombudsman for Banking Service and investments.
C) A rescission of the objectionable trades.
D) An Independent arbitration.


3. Who in a sell-side firm is responsible for structuring new debt issues and bringing them to the primary market?

A) Sales representative
B) Investment banker
C) Portfolio manager
D) Trader


4. What is one key feature of a right?

A) The market values of rights are set when they ate issued and remain constant until expiration
B) Sharestrade ex-rights beginning one business day before therecord date
C) The subscription or offering price or rights is often set at the current market price of the shares.
D) Rights generally have very little time value because they have a short lifespan


5. A large number of well-trained, willing-to-work individuals have given up trying to find employment. All else being equal, how will the labor market indicators be affected by this event.

A) An increase in the labour force.
B) An increase in the participation rate.
C) A decrease in the overall unemployment rate.
D) A decrease in the structural unemployment rate.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: B
Question # 4
Answer: D
Question # 5
Answer: C

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