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CSI CSC1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Corporations and their Financial Statements8%- Financial Statement Analysis
  • 1. Cash Flow Statement
  • 2. Income Statement
  • 3. Balance Sheet
Topic 2: Derivatives10%- Derivative Instruments
  • 1. Options
  • 2. Futures
  • 3. Hedging Strategies
Topic 3: Equity Transactions10%- Trading Equities
  • 1. Margin Trading
  • 2. Order Types
  • 3. Settlement Procedures
Topic 4: Pricing and Trading of Fixed-Income Securities11%- Bond Markets
  • 1. Trading Practices
  • 2. Bond Pricing
  • 3. Yield Calculations
Topic 5: Features and Types of Fixed-Income Securities12%- Fixed-Income Instruments
  • 1. Yield and Risk
  • 2. Government Bonds
  • 3. Corporate Bonds
Topic 6: The Economy13%- Macroeconomic Fundamentals
  • 1. Inflation
  • 2. Economic Cycles
  • 3. Fiscal Policy
  • 4. Monetary Policy
Topic 7: Financing and Listing Securities8%- Security Issuance
  • 1. Listing Requirements
  • 2. Private Placements
  • 3. Public Offerings
Topic 8: Common and Preferred Shares13%- Equity Securities
  • 1. Preferred Shares
  • 2. Shareholder Rights
  • 3. Common Shares
Topic 9: The Canadian Investment Marketplace15%- Canadian Regulatory Environment
  • 1. Ethics
  • 2. Regulation and Supervision
  • 3. Regulators
- Canadian Securities Industry
  • 1. Trends in the Market
  • 2. Overview of the Industry
  • 3. Other Financial Intermediaries
  • 4. Investment Dealer's Role as a Financial Intermediary
- Capital Markets
  • 1. Products
  • 2. Markets
  • 3. Capital

CSI Canadian Securities Course Exam 1 Sample Questions:

Question 1

Which security is issued by a company lo existing shareholders allowing, them to subscribe for additionalshares over a period of severalyears?

A. Stock options.
B. Warrants
C. Long-term equity anticipation security.
D. Rights.


Question 2

The principleof retraction in retractable preferredshares is identical to what other security?

A. Retractable bonds and debentures
B. Retractable common shares
C. Callable preferred shares.
D. Redeemable preferred shares.


Question 3

Which derivatives transactionhas the greatest default risk?

A. Individual investor entering future contract with an institutional investor.
B. Individual investor buying shares on an exchange during the ex-rights period.
C. Interest rate forward agreement between an investment dealer and a corporation.
D. Exchange-traded equity option contract between an individual investor and a dealer.


Question 4

What is one key feature of futures?

A. The buyer must pay theseller a feewhen the contract is entered Into.
B. Can trade on an exchange or over-the-counter market.
C. Parties are unable to offset the contract prior to expiration.
D. Both parties to me contract must participate in The future Trade.


Question 5

On what is the dividend rate for rate-reset preferred shares based?

A. The five-year Government of Canada bond yield plus a spread
B. The three-month Government of Canada Treasury bill yield plus a spread
C. The preferred share issuer's senior bonds plus a spread
D. The Dank at Canada's overnight rate plus a spread


Solutions:

Question 1
Answer: B
Question 2
Answer: A
Question 3
Answer: C
Question 4
Answer: B
Question 5
Answer: A

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