CSC Canadian Capital Markets

Question 1

Which market is where newly issued securities are sold to investors for the first time?

Accepted Answer

Primary market

Answer

Secondary market

Answer

Over-the-counter market

Answer

Derivatives market

Question 2

The Toronto Stock Exchange (TSX) is best described as which type of market?

Accepted Answer

Secondary market

Answer

Primary market

Answer

Derivatives market

Answer

Private placement market

Question 3

Which organization regulates the conduct of investment dealers and their registered representatives across Canada?

Accepted Answer

CIRO

Answer

OSFI

Answer

CIPF

Answer

Bank of Canada

Question 4

What is the primary function of an investment dealer acting as an underwriter?

Accepted Answer

Guaranteeing the purchase of a new securities issue from the issuer

Answer

Providing margin loans to investors

Answer

Managing client portfolios on a discretionary basis

Answer

Executing secondary market trades on behalf of clients

Question 5

A 'best efforts' underwriting agreement means the investment dealer will:

Accepted Answer

Use maximum effort to sell the issue but does not guarantee full sale

Answer

Guarantee the full proceeds to the issuer

Answer

Purchase all unsold shares at a discount

Answer

Provide a bridge loan if the issue is undersubscribed

Question 6

Which of the following instruments trades on the Bourse de Montréal?

Accepted Answer

Exchange-traded options and futures

Answer

Common shares of Canadian companies

Answer

Government of Canada treasury bills

Answer

Canadian corporate bonds