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Reference: https://www.csi.ca/en/learning/courses/csc
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CSI Canadian Securities Course Exam2 Sample Questions:
A shareholder receives rights from a company through direct ownership in shares. Not expecting to exercise them, she sells the rights on the relevant exchange. What is her capital gain?
- A. The current price of the shares less the sale price of the rights.
- B. The current share price less the exercise price of the rights.
- C. The sale price less the exercise price of the rights.
- D. The sale price of the rights.
Correct Answer: D 🗳️
What is an advantage of a structured product?
- A. Complexity.
- B. Diversification.
- C. Cost structure.
- D. Liquidity.
Correct Answer: B 🗳️
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Which factor would deter an investor from investing in a company's convertible preferred shares?
- A. High preferred dividend coverage ratio.
- B. Common stock outlook has been downgraded.
- C. Long life of the conversion privilege.
- D. The equity per preferred share decreased to three times the value of assets.
Correct Answer: B 🗳️
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What is one advantage of implementing indexing investing style?
- A. Simple for investors to understand.
- B. Offers opportunity to outperform the market at a low cost.
- C. Provides preferential tax treatment to distributions in the form of derive-based income.
- D. Suitable for short-term investing.
Correct Answer: A 🗳️
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A portfolio manager is reviewing the current asset mix of a portfolio. Some securities have done really well, while others have experienced poor returns. How can the portfolio manager rebalance the portfolio to ensure it remains aligned with the client's long-term goals?
- A. Reallocate assets back to their target weights by buying securities that have performed well and selling securities that have done poorly.
- B. Create cash reserves for future potential investment opportunities by selling securities that have done poorly.
- C. Create cash reserves for future potential investment opportunities by selling securities that have performed well.
- D. Reallocate assets back to their target weights by selling securities that have performed well and buying securities that have done poorly.
Correct Answer: D 🗳️
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