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| Section | Objectives |
|---|---|
| Fixed Income Securities | - Debt instruments
|
| Canadian Financial Markets and Economic Environment | - Economic fundamentals
|
| Equity Securities | - Common and preferred shares
|
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) Listing the company will require restrictions on stock options Issued for Internal use
B) The valuation of securities for estate tax purposes and estate tax punning will be easier
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. Brice purchased a $10.000 real return bond. The bond has a 10-year term to maturity and an annual coupon of
5% paid semi-annually. If the Consumer Price index increases by 0.8% over the next six months, what is the amount of Brice's first coupon payment?
A) $252
B) $250
C) $2920
D) $254
3. What bestdescribes the liability of limited partners in a limited partnership?
A) They are not liable for debts and losses incurred in business operations.
B) Their liability is limited to their investment
C) Their liability includes personal assets.
D) They are liable only to the extent of the daily business activities they participate in.
4. What obligation dues an IA have when communicating informationabout a preliminary prospectus to prospectiveinvestors?
A) The IA must ensure 3 proxy is mailed to the investors to vote for approval or disapproval of the offering.
B) The IA mum record the names addresses of those who have requested and received a preliminary prospectus
C) The IA must make a tombstone advertisement.
D) The IA must provide a greensheet
5. What is one atthe most important factors todetermine how muchof a product people buy or sell in a given marketplace?
A) Government spending
B) Price level
C) Consumer satisfaction
D) Maximized profits
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: B |
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