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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Derivatives | 10% | - Uses, risks and basic strategies - Options, futures and forwards |
| Topic 2: Pricing and Trading of Fixed-Income Securities | 11% | - Trading and settlement processes - Valuation and pricing methods - Price-yield relationship |
| Topic 3: The Canadian Investment Marketplace | 16% | - Structure of Canadian financial system - Regulators and self-regulatory organizations - Market participants and roles |
| Topic 4: Regulation and Ethics | 8% | - Industry regulations and compliance - Client suitability and disclosure - Code of conduct and ethical standards |
| Topic 5: Features and Types of Fixed-Income Securities | 12% | - Characteristics, risks and benefits - Types of fixed-income instruments - Government and corporate bonds |
| Topic 6: Equity Transactions | 10% | - Trading mechanics and regulations - Margin and short selling - Order types and execution |
| Topic 7: Financing and Listing Securities | 7% | - Listing requirements and rules - Primary market and issuance process |
| Topic 8: Common and Preferred Shares | 13% | - Equity features and rights - Dividends and corporate actions - Valuation and classification |
| Topic 9: The Economy | 13% | - Monetary and fiscal policy - Impact of economic factors on investments - Macroeconomic principles and indicators |
1. Diana was appointed a senior vice president of the ABC inc. She is also a member of the board of XYZ Company where ABC inc, is a % stockholder. What best describes Diana's insider reporting obligations to the regulator?
A) Report her trading activity involving XYZ Company stock only.
B) Report her trading activity Involving ABC Inc. stock only.
C) Report her trading activity Involving both ABC inc. and XYZ Company stock.
D) Report her trading activity involving ABC Inc. stock and Issue a press re-case reporting tne holdings in XYZ Company.
2. What is the settlement date for Government of Canada bones?
A) Two business days after the transaction
B) Three business days after the transaction.
C) One business day after the transaction
D) same day me transaction takes place.
3. What is a characteristicof provincial savings bonds?
A) Mature every six months
B) Available only at a certain time
C) Backed by provincial assets
D) Can be issued Internationally.
4. What is the role thatthe dealer memberis taking when a client's order for an unlisted security is filled directly from inventory rather than on the exchange?
A) Over-the-counter agent
B) Alternative trading system
C) Principal
D) Clearing agent
5. On what basis are government securities awarded atthe auction average yield?
A) Schedule III banks
B) Open market
C) Dealer market system
D) Non-competitive lender.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: D |
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