Practice Test GeeksCSC - Canadian Securities Course Practice Test
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Canadian Capital Markets Flashcards

6 cards from real CSC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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

    Answer: Primary market

    The primary market is where issuers sell new securities directly to investors through mechanisms like IPOs and new bond offerings.

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

    Answer: Secondary market

    The TSX is a secondary market where previously issued securities are bought and sold between investors.

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

    Answer: CIRO

    The Canadian Investment Regulatory Organization (CIRO) oversees investment dealers and mutual fund dealers and their registered individuals.

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

    Answer: Guaranteeing the purchase of a new securities issue from the issuer

    An underwriter buys the new securities issue from the issuer and resells them to the public, taking on the risk of distribution.

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

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

    Under a best efforts agreement, the dealer acts as agent and tries to sell as much of the issue as possible but returns unsold securities to the issuer.

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

    Answer: Exchange-traded options and futures

    The Bourse de Montréal is Canada's derivatives exchange, specializing in equity, index, interest rate, and currency derivatives.