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CSI CSC2 real answers - Canadian Securities Course Exam2

CSC2
  • Exam Code: CSC2
  • Exam Name: Canadian Securities Course Exam2
  • Updated: Jul 10, 2025
  • Q & A: 102 Questions and Answers
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CSI Canadian Securities Course Exam2 Sample Questions:

1. Why would a corporation choose to issue preferred shares rather than debt?

A) The preferred dividend rate usually varies with the market interest rates
B) issuing preferred shares would reduce the amount of leverage.
C) The costs for issuing preferred shares are usually kwh than debt.
D) Existing assets have excess financing capacity to justify the issue of preferred shares.


2. A portfolio manager at an investment firm is analyzing the behavior of stocks in various market conditions.
They believe markets are efficient and that all public and non-public and non-public available information is fully reflected in current process. How should the construct their investment portfolio?

A) Create a passive investment portfolio with exchange- traded funds.
B) Use both fundamental and technical analysis to add value to the portfolio.
C) Use technical analysis to review all past price movements and trends.
D) Actively buy and sell stocks in an attempt to beat the stock market's average returns.


3. What action must an investment advisor take when submitting a trade ticket for a short sale?

A) Obtain minimum margin amount from client
B) Mark it as a margin order
C) Verify the client can borrow the shares.
D) Mark the sell-order ticket as a short sate


4. What is the main pitfall of closet indexing for investors?

A) passively management fund can be marketed as actively managed.
B) The portfolio does not closely resemble the benchmark index.
C) High portfolio turnover makes it unsuitable for taxable accounts
D) Investors must take greater risks due to a high portfolio beta.


5. Which statutory right allows a purchaser to caned their order if a prospectus has a misrepresentation?

A) Right of action for damages
B) Right of amended prospectus delivery
C) Right of withdrawal.
D) Right of rescission.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: A
Question # 5
Answer: D

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