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CSI Canadian Securities Course Exam 1 Sample Questions:
1. A private company is working with an advisory firm To apply for a listing on a public exchange.
The management is concerned with the additional costs for the company Incurred by the listing and ongoing annual fees. What should management consider with regard to the costs and benefits of public listing?
A) The valuation of securities for estate tax purposes and estate tax punning will be easier
B) Listing the company will require restrictions on stock options Issued for Internal use
C) Management will benefit from the public disclosure of changes in the company.
D) Listing the company win attract new shareholders and increase the ability to raise capital.
2. A large corporation has issued the following securities:commercialpaper, first mortgage bonds, and equipment trust certificates Which ranging of the securities is correctly seated from most secure to teas: secure?
A) Commercial paper fast mortgage bonds, equipment "trust certificates
B) Equipment trust certificates, first mortgage bonds, commercial paper.
C) First mortgage bonds equipment trust certificates, commercial paper.
D) Firm mortgage bonds commercial paper, equipment trust certificates.
3. What is theImpact from a security price increase on the investorholding a long margin position?
A) The investor will incur a loss equivalent lo the difference be-ween the purchase and sale price.
B) The investor has access to additional funds from the account available for withdrawal.
C) The investor must immediately pay interest on the excess margin amount
D) The Investor must provide additional funds to cover the price difference
4. What is one key feature of futures?
A) The buyer must pay theseller a feewhen the contract is entered Into.
B) Parties are unable to offset the contract prior to expiration.
C) Both parties to me contract must participate in The future Trade.
D) Can trade on an exchange or over-the-counter market.
5. Which preferredshare pays a fixed dividend rate based on the yield to maturity on the five-year benchmark Government at Canada bond?
A) Fixed-rate perpetual preferred share.
B) Flexed/floating preferred share.
C) Floating-rate preferred share.
D) Rate-reset preferred share.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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