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CSC CANADIAN SECURITIES COURSE EXAM NEWEST 2024 -
2025 ACTUAL EXAM COMPLETE 330 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
What are the individual financial markets that make up the capital markets? - ANSWER- Stock markets, bond markets, and money markets.
What other ways can the capital market be categorized as? - ANSWER- Primary, secondary, and auction markets.
What is the purpose of primary markets? - ANSWER- It is where newly issued securities are sold.
What is the purpose of secondary markets? - ANSWER- Where investors trade securities that are already been issued by companies.
What is an auction market? - ANSWER- Where investment dealers act as agents execute buy & sell orders on behalf of their clients.
What is a Dealer (OTC) market? - ANSWER- It is a negotiated market where market makers post bid-ask quotes. Consists of banks and investment dealers who act as principal. Almost all bonds and debentures are sold here. 1 / 4
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What are the 5 exchanges in Canada? - ANSWER- TSX, TSX.V, Montreal Exchange, Canadian securities exchange, NEO Exchange.
What is an Alternative Trading System (ATS)? - ANSWER- Are electronic marketplaces that provide automated matching and execution of trades in both equity and fixed-income markets.
What is CanDeal? - ANSWER- It is a joint venture between Canada's 6 largest bank-owned investment dealers.
What is CBID? - ANSWER- It is an ATS that operates 2 types of fixed- income marketplaces, retail and institutional.
What is CanPX? - ANSWER- It is a joint venture between several Canadian investment dealers that provides real time Bid and ask quotes in price and yield terms for Government of Canada Tbills.
Who regulates the financial sector in Canada? - ANSWER- The Office of the Superintendent of Financial Institutions (OSFI).
What is the job of the Canadian Securities Administration (CSA)? - ANSWER- It is an umbrella organization of Canada's securities regulators designed to harmonize regulation of the Canadian capital markets.
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What is a Self Regulatory Organization(SRO)? - ANSWER- SRO's are private industry organizations that provincial regulatory bodies have granted the privilege of regulating their own members. They have their own rules and requirements.
Who monitors SRO's? - ANSWER- The Canadian Securities Administration (CSA).
Name two SRO's - ANSWER- The Investment Industry Regulatory Organization of Canada (IIROC), and the Mutual Fund Dealers Association (MFDA).
What does IIROC do? - ANSWER- It oversees all the investment dealers and trading activity on debt and equity markets in Canada.
What functions does IIROC perform? - ANSWER- Financial and business conduct compliance, Registration, enforcement, and market surveillance.
What is the MFDA? - ANSWER- It is the SRO for regulating the distribution and sales of mutual funds by its members in Canada.
What are the functions of the MFDA? - ANSWER- It can admit members, audit, enforce rules, and apply penalties.
Who is the OSFI and what do are its functions? - ANSWER- It is an independent agency of the Canadian Government designed to contribute 3 / 4
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to the safety of the Canadian Financial system. It regulates deposit taking banks, insurance companies, foreign banks offices, and federally regulated pension plans.
What is the role of the Canadian Investor Protection Fund (CIPF)? - ANSWER- The primary role is investor protection, Its secondary role is to oversee the self-regulatory system.
Who does the CIPF protect and what does it cover for them? - ANSWER- It protects eligible customers in the event of the insolvency of an IIROC dealer member. It offers coverage of up to $1,000,000 for each accounts. Accounts are separated into different categories and each category can receive up to$1M.
What does the MFDA Investor Protection Corporation (MFDA IPC) protect? - ANSWER- It provides protection for eligible customers of insolvent MFDA member firms.
What type of coverage does the MFDA IPC have? - ANSWER- Up to $1,000,000 for each account.
What does the Canadian Deposit Insurance Corporation (CDIC) do? - ANSWER- It is a federal crown corporation that provides deposit insurance.
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