Canadian Security Courses (CSC) UPDATED Questions and CORRECT Answers
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Canadian Security Courses
Institution
Canadian Security Courses
Canadian Security Courses (CSC)
UPDATED Questions and CORRECT
Answers
Agent - CORRECT ANSWER- An investment dealer operates as an agent when it acts
on behalf of a buyer or a seller of a security and does not itself own title to the securities at
any time during the transactions.
Broker - ...
Canadian Security Courses (CSC)
UPDATED Questions and CORRECT
Answers
Agent - CORRECT ANSWER✔✔- An investment dealer operates as an agent when it acts
on behalf of a buyer or a seller of a security and does not itself own title to the securities at
any time during the transactions.
Broker - CORRECT ANSWER✔✔- An investment dealer or a duly registered individual that
is registered to trade in securities in the capacity of an agent or principal and is a member of a
self-regulatory organization.
CDS Clearing and Depository Services Inc. - CORRECT ANSWER✔✔- CDS provides
customers with physical and electronic facilities to deposit and withdraw depository-eligible
securities and manage their related ledger positions (securities accounts). CDS also provides
electronic clearing services both domestically and internationally, allowing customers to
report, confirm and settle securities trade transactions.
Clearing - CORRECT ANSWER✔✔- The process of confirming and matching security
trade details.
Closed-end fund - CORRECT ANSWER✔✔- Shares in closed-end investment companies
are readily transferable in the open market and are bought and sold like other shares.
Capitalization is fixed.
Consumer finance company - CORRECT ANSWER✔✔- Makes direct cash loans to
consumers, who usually are unable to secure a loan from a bank. Consumer finance
companies typically charge a higher interest rate than banks.
Discount broker - CORRECT ANSWER✔✔- Brokerage house that buys and sells securities
for clients at a greater commission discount than full-service firms. Also known as self-
directed brokers.
,Financial intermediary - CORRECT ANSWER✔✔- An institution such as a bank, life
insurance company, credit union or mutual fund which receives cash, which it invests, fro
suppliers of capital
Fintech - CORRECT ANSWER✔✔- Financial technology companies that take advantage of
computer technology to provice more efficient financial products and services.
Firewall - CORRECT ANSWER✔✔- Policies implemented to separate and isolate persons
within a firm who make investment decisions from persons within a firm who are privy to
undisclosed material information which may influence those decisions. For example, there
should be separate fax machines for research departments and sales departments.
Integrated firm - CORRECT ANSWER✔✔- Investment dealer that offers products and
serices that cover all aspects of the industry, including full participation in both the
institutional and the retail markets
Investment dealer - CORRECT ANSWER✔✔- A person or company that engages in the
business of trading in securities in the capacity of an agent or principal and is a member of
IIROC
Investment fund - CORRECT ANSWER✔✔- A fund or company that selss units r shares and
invests the proceeds in a portoflio fo securities. There are two principal types; closed-end and
open-end or mutual fund. Shares in closed-end investment companies are readily transferable
in the open market and are bought and sold like other shares. Capitalization is fixed. Open-
end funds sell their own new shares to investors, buy back their old shares, and are not listed.
Open-end funds are so-called because their capitalization is not fixed; they normally issue
more shares or units as people want them.
Investment industry association of Canada - CORRECT ANSWER✔✔- A member-based
professional association that represents the interests of market participants.
Mutual fund - CORRECT ANSWER✔✔- An investment fund operated by a company that
uses the proceeds from shares and units sold to investors to invest in stocks, bonds,
,derivatives and other financial securities. Mutual funds offer investors the advantages of
diversification and professional management and are sold ona. Load or no load basis. Mututal
fund shares/units are redeemable on demand at the fnd's urrent net asset value par share
(NAVPS)
Open-ended fund - CORRECT ANSWER✔✔- See mututal fund
Pension fund - CORRECT ANSWER✔✔- A pension fund is a pool of assets managed with
the goal of supplying its beneficiaries with income during their retirement years
Primary market distribution - CORRECT ANSWER✔✔- The issuance of securities in the
primary market
Principal - CORRECT ANSWER✔✔- The person for whom a broker executes an order, or a
dealer buying or selling or its own account. The term may also refer to a person's capital or to
the face amount of a bond
Retail firm - CORRECT ANSWER✔✔- Retail firms are investment dealers that serve only
retail clients. Retail firms include full-service firms and discount brokers. Fullservice firms
offer a wide variety of products and services for the retail investor. Discount brokers execute
trades for retai cleints at a reduced rate, but do not provide investment advice.
Robo-adisor - CORRECT ANSWER✔✔- An online investment service that provides clients
with automated investment advice
Sales finance company - CORRECT ANSWER✔✔- Purchases, at a discount, instalment
sales contracts from retailers and dealer when such items as new cars and applicanes are
bought on instalment plans
Savings bank - CORRECT ANSWER✔✔- A financial institution whose main role is to
accept savings deposits and pay interest on those deposits. Usually set up by a government
and is similar in function to a credit union.
, Schedule I bank - CORRECT ANSWER✔✔- Canadian-owned banks. The largest 6 banks in
Canada out-distance the asset size of other Canadian-owned banks. Schedule I banks are
regulated by the Bank Act.
Schedule II bank - CORRECT ANSWER✔✔- Banks that are incorporated and operate in
Canada as federally regulated foreign bank subsidiaries. Schedule II banks are regulated by
the Bank Act.
Schedule III bank - CORRECT ANSWER✔✔- Banks that are federally regulated foreign
bank branches of foreign institutions that have been authorized under the Bank Act to do
banking business in Canada
Self-directed broker - CORRECT ANSWER✔✔- Also known as discount brokers, self-
directed brokers offer discounted transaction costs and do not provide investment advice to
investors
Settlement - CORRECT ANSWER✔✔- The moment of irrevocable exchange of cash and
securities
Alternative trading system - CORRECT ANSWER✔✔- Privately-owned computerize
networks that match orders for securiteis outside of recognized exchange facilities. Also
reffered to as properitary electronic trading systems
Ask price - CORRECT ANSWER✔✔- The lowest price a seller will accept for the financial
instrument being quoted
Auction market - CORRECT ANSWER✔✔- Market in which securities are bought and sold
by brokers acting as agents for their clients, in contrast to a dealer market where trades are
conducted over-the-counter. For example, the toronto stock exchange is an action market
Bid-ask spread - CORRECT ANSWER✔✔- The difference between the current bid and ask,
calculated as ask-bid
Bid spread - CORRECT ANSWER✔✔- The highest price a buyer is willing to pay for
financial instrument being quoted
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