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CSI Canadian Securities Course Exam 1 Sample Questions:
1. What is one key feature of a right?
A) The market values of rights are set when they ate issued and remain constant until expiration
B) The subscription or offering price or rights is often set at the current market price of the shares.
C) Sharestrade ex-rights beginning one business day before therecord date
D) Rights generally have very little time value because they have a short lifespan
2. Billy owns shares of 143 Financing inc, in a discretionary account. He wants to exercise his right to vote at the company's annual general meeting, but will be away on a business trip. Who can vote on Billay's behalf?
A) Only by Billy
B) His Investment advisor who has discretionary Investment duties
C) Any person whom he has designated Through a proxy
D) His dealer as long as there is a signed consent on file
3. What is the best way to measure the performance of stock indexes?
A) Point changes
B) Share price changes
C) Percentage changes
D) Relative value changes
4. Which derivatives transactionhas the greatest default risk?
A) Individual investor buying shares on an exchange during the ex-rights period.
B) Interest rate forward agreement between an investment dealer and a corporation.
C) Exchange-traded equity option contract between an individual investor and a dealer.
D) Individual investor entering future contract with an institutional investor.
5. What actions can a government take to lower a $40billionnational deficit?
A) Increase taxation
B) Increase interest rates.
C) Decrease taxation
D) Increase government spending.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: A |





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