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CSI CSC1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financing and Listing Securities | 7% | - Primary market and issuance process - Listing requirements and rules |
| Topic 2: Derivatives | 10% | - Uses, risks and basic strategies - Options, futures and forwards |
| Topic 3: Common and Preferred Shares | 13% | - Equity features and rights - Dividends and corporate actions - Valuation and classification |
| Topic 4: Regulation and Ethics | 8% | - Client suitability and disclosure - Code of conduct and ethical standards - Industry regulations and compliance |
| Topic 5: Features and Types of Fixed-Income Securities | 12% | - Government and corporate bonds - Types of fixed-income instruments - Characteristics, risks and benefits |
| Topic 6: Equity Transactions | 10% | - Margin and short selling - Trading mechanics and regulations - Order types and execution |
| Topic 7: Pricing and Trading of Fixed-Income Securities | 11% | - Price-yield relationship - Trading and settlement processes - Valuation and pricing methods |
| Topic 8: The Canadian Investment Marketplace | 16% | - Regulators and self-regulatory organizations - Market participants and roles - Structure of Canadian financial system |
| Topic 9: The Economy | 13% | - Impact of economic factors on investments - Macroeconomic principles and indicators - Monetary and fiscal policy |
CSI Canadian Securities Course Exam 1 Sample Questions:
1. What is the difference between sinking funds and purchase funds concerning the redemption of bonds poor to maturity?
A) Sinking funds have mandated redemptions while purchase funds can redeem only upon certain market conditions.
B) Sinking funds can redeem bonds only if they trade below a stipulated price while purchase runes do not have such a requirement.
C) Sinking funds can redeem fie bones any time while purchase funds follow a prearranged schedule.
D) Sinking funds involve the issuer determining when bonds are redeemed while purchase funds Involve the investor determining when the bonds are redeemed.
2. What order would an investor use to protecta short position?
A) Stop loss
B) Market
C) Good till
D) Stop buy
3. What is one key feature of a right?
A) The market values of rights are set when they ate issued and remain constant until expiration
B) The subscription or offering price or rights is often set at the current market price of the shares.
C) Rights generally have very little time value because they have a short lifespan
D) Sharestrade ex-rights beginning one business day before therecord date
4. A bond with a duration of five is currently priced at $103. If Interestrates rise by 2%. approximately what win be me bond's price?
A) $92.70
B) $97.85
C) $113.30
D) $108.15
5. Using the Moody's long-term rating scale, which rating is best suited for an obligation that is not yetin default, out is considered speculative andsubject to very high credit risk?
A) Caa
B) B
C) C
D) Ba
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: A |
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