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CSC Volume 1 Exam With Complete Solutions Latest Update
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CSC Volume 1 Exam With Complete Solutions Latest Update
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Solution 2024/2025Pepper
CSC Volume 1 Exam With Complete Solutions
Latest Update 2024-2025
What does SRO stand for and what does it do ANS✔✔ Self Regulatory
Orgnaization is delegated tasks from the securities commissions when the
commision regulators are too far away to manage details
SRO is accountable because they are under the CIRO
They oversee investment dealers, mutual fund ealers, and trading activity
on Canada's debt, equity, and mutual fund marketplaces
What does CIRO stand for and what does it do ANS✔✔ Canadian Investment
Regulatory Organization establishes and enforces industry regulations that
protect investors and maintain fair, equitable, and ethical practices
What does the CIPF do and what does it stand for ANS✔✔ Canadian investor
protection fund provides insurance and protection against dealer/mutual
fund dealer insolvency.
Functions of principals ANS✔✔ they transfer capital from suppliers to users
through the underwriting and distribution of new securities
what is underwriting ANS✔✔ When the dealer acts as a principal and buys
the whole lot from the issuer (attempting IPO), assumes the risks of
ownership, and then sells it in the open market.
, Solution 2024/2025
Pepper
Part of the primary market distribution
purchasing a new set of shares from a government/company on a given
date at a specified price
After primary distribution, dealers act as principals by maintaining the
inventory of already issues, outstanding securities
What are market makers ANS✔✔ Dealers acting as principals who buy and
sell securities at a specific price, they make money, but also add liquidity to
the market
What is an integrated firm ANS✔✔ offer both retail and institutional
markets, which contribute to the 2 different sales department
they underwrite types of federal, provincial, municpal, and corporate debt
and equity issues
ative in secondary and foreign markets
what are principal transactions ANS✔✔ dealers owning securities as part of
their inventory during some point of the transaction.
some underwriting may be involved
what is netting ANS✔✔ brokers have hundreds of investors they deal with,
so when all the transactions are being cleared with the CDS, the CDS adds
up all of "broker 1's" buy and sell transactions. They "net out" the money to
minimize money transferred by "broker 1."
, Solution 2024/2025
Pepper
What is the bank act ANS✔✔ federal legislation that sets out operating rules
and restrictions for banks, typically updated every 5 years
Banks are allowed to be part of these different financial services, but are
controlled by the Bank Act
Difference between Schedule I, II, and III banks ANS✔✔ Schedule I banks are
domestic banks even thought they have foreign shareholders
Canada's six big banks are, BMO, CIBC, National Bank of Canada, RBC,
Scotiabank, and TD
Due to asset size, achieved by retail branches and atms throughout Canada
Schedule II Banks are allowed to do some of the same things as a Schedule I
bank, but derive most of their revenue from retail banking and electronic
financial services (AMEX, Citibank, UBS)
Schedule III Banks focus on institutional finance and investment banking
(Barclays Bank and Comerica Bank)
The canadian government allows them to operate in Canada, which allows
Canadian Schedule I banks operate abroad
Defined benefit vs. defined contribution pension plans ANS✔✔ DB provices
pre determined payment amounts for when they retire, but DC allows for
investments over time, but employers have to cover shortfalls with DC
which affects financial statements
What is a mutual fund ANS✔✔
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