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| Topic 1 | - The Canadian Investment Marketplace: This section of the exam measures the skills of a Securities Industry Professional and covers the structure and operation of Canada's investment marketplace. It includes the roles of investment dealers and financial intermediaries, capital market functions, financial instruments, and the complete Canadian regulatory environment with its regulatory bodies, principles of regulation, client remediation options, and ethical standards for financial services professionals.
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| Topic 2 | - Additional Topics: This section of the exam measures the skills of a Wealth Management Professional and covers Canadian taxation systems, tax-advantaged accounts, fee-based account structures, retail client financial planning and estate planning, institutional client management, and ethical standards for financial advisors serving both individual and institutional clients.
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| Topic 3 | - The Economy: This section of the exam measures the skills of an Economic Analyst and covers fundamental economic concepts including microeconomics and macroeconomics, economic growth measurement, business cycles, labor markets, interest rates, inflation, international trade, and both fiscal and monetary policy with emphasis on the Bank of Canada's role and government policy challenges.
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| Topic 4 | - Analysis of Managed and Structured Products: This section of the exam measures the skills of an Investment Products Specialist and covers mutual funds, exchange-traded funds, alternative investments, structured products, and other managed products including their structures, regulations, features, risks, strategies, performance measurement, and tax implications within the Canadian investment landscape.
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CSI Canadian Securities Course Exam2 Sample Questions (Q212-Q217):
NEW QUESTION # 212
What financial ratio reveals the nature of a company's capital structure?
- A. Return-on-equity.
- B. Price-to-earnings.
- C. Debt-to-net-income.
- D. Debt-to-equity.
Answer: D
Explanation:
The debt-to-equity ratio reveals the nature of a company's capital structure by comparing the amount of financing supplied by creditors with the amount supplied by shareholders. A higher debt-to-equity ratio indicates greater leverage and greater reliance on borrowed funds. This can increase return potential when business conditions are favourable, but it also increases financial risk because interest and principal obligations must be met. Price-to-earnings is a valuation ratio, not a capital structure ratio. Return-on-equity measures profitability relative to shareholders' equity. Debt-to-net-income is not the standard ratio used to evaluate capital structure. In CSC company analysis, debt-to-equity is the direct measure of how a company is financed between debt and equity.
NEW QUESTION # 213
An investor has the following separate stock transactions:

What is the investor's overall adjusted cost base per share? (Round two decimal points.)
- A. $15.95
- B. $16.38
- C. $15.72
- D. $15.83
Answer: A
NEW QUESTION # 214
The following information is available for REW Co:
What is the price of REW Co. if calculated using the dividend discount model?
- A. $12.50.
- B. $14.29.
- C. $13.75.
- D. $15.71.
Answer: B
NEW QUESTION # 215
What is the most accurate feature of a Canada Education Savings Grant (CESG)?
- A. CESG may be earned until the beneficiary is 21 years of age.
- B. CESG payments are made directly to the RESP firm.
- C. The maximum CESG per beneficiary is $2,500 annually.
- D. The maximum lifetime CESG per beneficiary is $8,500.
Answer: B
NEW QUESTION # 216
Who generally executes portfolio strategy within a buy-side firm?
- A. Investment advisor.
- B. Portfolio manager.
- C. Trader
- D. Head of fixed income
Answer: B
Explanation:
Within a buy-side firm, the portfolio manager is responsible for executing the portfolio strategy. They oversee investment decisions, asset allocation, and security selection based on the investment mandate and client objectives. Other roles:
* Head of fixed income (B) specializes in fixed-income securities rather than overall strategy.
* Investment advisor (C) interacts with clients, focusing on advice rather than execution.
* Trader (D) carries out transactions but does not set the portfolio strategy.
References
* CSC Volume 2 , Chapter 27: Working with the Institutional Client - The Buy-Side Portfolio Manager , p. 27-8.
NEW QUESTION # 217
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