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The Canadian Securities Course Questions Download PDF

The Ins and Outs of the Canadian Securities Course


The Canadian Securities Course is an intensive program administered by the Canadian Securities Institute (CSI) that provides the educational requirements to work in Canada’s securities industry. Upon completion, graduates receive the CSC designation.


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The course curriculum covers all aspects of securities regulation, investment products and trading. Some key topic areas include securities law, financial statement analysis, portfolio management strategies, investment vehicles like stocks and bonds.


The Canadian Securities Course Questions Download PDF


To earn the CSC designation, students must pass a national 2-hour multiple choice exam administered through Prometric test centers. The exam consists of 130 questions testing your knowledge across all course modules. A score of 70% or higher is required to pass.

Completing the CSC opens the door to careers as licensed representatives, also known as Investment Representatives or Securities Agents. This allows you to advise clients and sell mutual funds, stocks, bonds and other securities. Many pursue roles at brokerages, banks, and investment dealers.






The CSC is different from Sean Cleary’s Canadian Securities Exam prep material, which is a private third-party study guide but not affiliated with CSI. The official CSC designation requires passing the CSI exam.


Other designations like the CFA (Chartered Financial Analyst) involve further education, experience and exams focused more on portfolio management vs front-line client services.

CSI offers online and in-class training options. Additional study resources include practice exams, flashcards and lecture videos. Third parties also have exam prep courses.


While the CSI administers the only official exam, some provincial securities commissions may accept challenges directly through them instead of CSI.


In summary, the CSC is the gold standard for entering Canada’s securities industry and advising retail investors on investment products and services. Completing the program through CSI leads to licensing and career opportunities.


Here are the typical curriculum/textbook chapters covered on the Canadian Securities Course (CSC) exam:

  • Introduction to Canadian Regulation - Covers the roles of regulators like the CSA, IIROC, MFDA. Regulatory objectives.

  • Ethics and Professional Conduct - Fiduciary duty, know-your-client, suitability, conflicts of interest.

  • Economy and Equity Markets - Macroeconomic factors, market structures, types of equities and how they trade.

  • Fixed Income Securities - Bond basics, yields, risks, types of bonds. Bond valuation.

  • Investment Products - Mutual funds, ETFs, segregated funds. Fees, returns, risks.

  • Investment Analysis - Fundamental analysis, technical analysis, quantitative analysis approaches.

  • Wealth Management - Client profiling, risk tolerance, time horizon. Developing investment policies.

  • Taxation - Personal and corporate income tax. Tax-advantaged accounts like RRSPs, TFSAs, RESPs.

  • Retirement Savings and Estate Planning - RRSPs, RRIFs, pensions, CPP, OAS. Wills, powers of attorney, probate.

  • Operations - Order entry, trade execution, settlement, account types, reporting. Custody of assets.

  • Performance Measurement - Benchmarks, returns, risk measurement like standard deviation.

  • Securities Regulation - Prospectus, registration, KYC/suitability, disclosure. Prohibited activities.

  • Derivatives - Forwards, futures, options, swaps. Uses, valuation, risks of different derivative instruments.

The Canadian Securities Course Questions Download PDF
The Canadian Securities Course Questions Download PDF

So in summary, the CSC exam covers all aspects of the Canadian securities industry from regulations to products to analysis to client services. The curriculum is designed to prepare candidates for registration with IIROC or MFDA. The Canadian Securities Course Questions Download PDF


There are a few parts of the Canadian Securities Course (CSC) exam that tend to be more challenging than others:

  • Regulations and compliance - Knowing all the rules and regulations that advisors must follow can be difficult to recall under exam pressure. This includes things like know-your-client, suitability, conflicts of interest policies, prohibited activities, and other compliance topics.

  • Derivatives - Pricing and valuing different derivative instruments like options, futures, forwards and swaps requires understanding advanced mathematical concepts. This section requires strong calculation abilities.

  • Fixed income securities - Calculating bond prices, yields, durations, and other metrics involving things like interest rates, maturities, and cash flows can be challenging for many students.

  • Quantitative analysis - Questions involving things like calculating standard deviation, alpha, beta, Sharpe ratios, etc. test understanding of advanced statistical and mathematical concepts used in portfolio analysis.

  • Taxation - Remembering all the details of Canada’s complex personal and corporate tax codes as they relate to investment products like RRSPs, TFSAs, RESPs, etc. is daunting.

  • Operations - Recalling order entry procedures, settlement cycles, account types and other operational details of the securities industry puts memory to the test.

  • Performance measurement - Calculating returns over different time periods, adjusting for things like cash flows, fees and commissions is no simple task.


So in summary, the quantitative, calculus-heavy and compliance/regulations portions tend to give CSC students the most trouble due to their complexity and need to recall details under exam pressure. Thorough practice is key to mastering these challenging areas.


While there is no definitive breakdown, most estimates indicate that around 20-30% of the questions on the Canadian Securities Course (CSC) exam involve some level of math, financial calculations or quantitative analysis.


Some key points on the math/finance question content:

  • Derivatives section has the most calculation-heavy questions, testing understanding of options pricing models, Greeks, etc. This is usually 5-10 questions.

  • Fixed income questions require bond valuation calculations using things like yields, durations, cash flows. About 5-8 questions.

  • Performance measurement section involves calculating returns, standard deviation, Sharpe ratios - 4-6 questions.

  • Portfolio management questions may involve calculating optimal asset allocations. 2-4 questions.

  • Taxation questions sometimes require calculating tax liabilities in different scenarios. 2-3 questions.

  • Economics/markets questions may involve interpreting charts/graphs or calculating ratios. 5-8 questions.

  • Other sections like regulations, products, wealth management will have 1-2 conceptual math questions each.


So in total, a reasonable estimate would be 20-30 quantitative questions out of the overall 120 multiple choice CSC exam. This represents approximately 20-25% of the exam focusing on math, finance concepts and calculations.


Mastery of these quantitative skills is important for passing the exam, so students need to practice plenty of example questions to feel comfortable with the required math and analysis abilities.



Preparing for the CSC Exam - A Learning Experience


I recently took the Canadian Securities Course (CSC) exam in hopes of obtaining my securities license. Going into the exam, I thought that if I had a basic understanding of each chapter and knew the key terms and concepts, I would be okay. Boy, was I wrong!


The exam was much more difficult and in-depth than I expected. While there were some straightforward questions testing your knowledge of products, regulations, etc., many questions involved complex scenarios that really tested your understanding. I was surprised at the level of detail and calculations required.


For example, in the derivatives chapter I thought understanding the basic options strategies would be enough. However, there were multiple questions involving Greek calculations, pricing models, and other advanced option strategies. The fixed income section also had bond valuation questions requiring yield, duration and cash flow calculations.

The performance measurement section involved things like calculating standard deviation, Sharpe ratios and other statistical analyses. I realized that just knowing the definitions wasn’t enough - you really need to understand how to apply the formulas.

Overall, I learned that you can’t just skim the material at a high level. You need to dive deep into understanding the mechanics of how Canadian securities work, the regulations advisors must follow, and professional and ethical standards. Really focus on the “why” behind everything, not just memorizing terms.


Most importantly, practice as many questions as you can in each area. The exam questions really test your ability to analyze complex scenarios, not just recall definitions. I wish I had done more practice questions earlier on.


In summary, don’t make the mistake I did of underestimating what’s required to pass this exam. Take the time to truly understand each topic, especially the quantitative areas. Only with thorough preparation and practice can you feel ready to take on the CSC exam. I hope sharing my experience helps others better prepare.


Here are 20 sample multiple choice questions for the Canadian Securities Course exam:

  1. Which of the following is NOT considered a primary market transaction?A) An IPOB) Trading on the TSXC) Issuance of corporate bondsD) Selling of shares directly from a corporation to investors

  2. What is the minimum investment required to open a Tax-Free Savings Account (TFSA)?A) $0B) $500C) $1000D) $5000

  3. Which type of mutual fund cannot borrow money or use derivatives?A) Money market fundB) Bond fundC) Equity fundD) Index fund

  4. What is the maximum penalty for breaching confidential client information under privacy laws?A) $100,000 fineB) 5 years imprisonmentC) Both A and BD) $10,000 fine

  5. Which of the following assets is most sensitive to changes in interest rates?A) BondsB) StocksC) GICsD) Real estate

  6. What percentage of an investment portfolio would be considered speculative?A) Less than 20%B) 20-40%C) 40-60%D) Over 60%

  7. What is the minimum investment required to be considered an accredited investor?A) $100,000B) $200,000C) $250,000D) $500,000

  8. What type of investment requires the highest know-your-client and suitability assessment?A) GICsB) BondsC) StocksD) Derivatives

  9. What is the minimum investment required for opening a self-directed RRSP or TFSA?A) $1000B) $2000C) $5000D) No minimum

  10. Which of the following is NOT a type of market order?A) At-the-marketB) Limit orderC) Fill-or-killD) Stop-limit

  11. What percentage of a new issue must be sold to the public under regulations?A) 10-15%B) 20-30%C) 30-40%D) 50-60%

  12. What is the minimum capital requirement for an individual registered as a dealing representative?A) $25,000B) $50,000C) $75,000D) $100,000

  13. What is the maximum penalty for breaching the prohibition of front running?A) $1,000,000 fineB) 5 years imprisonmentC) Both A and BD) $100,000 fine

  14. What is the minimum investment amount allowed for a Schedule III bank to accept?A) $100B) $1000C) $5000D) No minimum

  15. What percentage of an investment portfolio would be considered aggressive?A) Less than 30%B) 30-50%C) 50-70%D) Over 70%

  16. What is the minimum investment required to open a spousal RRSP?A) $0B) $1000C) $2000D) $5000

  17. What is the minimum capital required to incorporate an exempt market dealer?A) $25,000B) $50,000C) $75,000D) $100,000

  18. What is the standard settlement period for trading equities on the TSX?A) 1 dayB) 2 daysC) 3 daysD) 5 days

  19. What percentage of assets under management can be invested in illiquid securities for a mutual fund?A) 5%B) 10%C) 15%D) 20%

  20. What is the minimum investment required to open a Tax-Free Savings Account for a spouse?A) $0B) $1000C) $2000D) $5000



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