CSC1 Exam Dumps : Canadian Securities Course Exam 1

A stock split reduces the price per share, making the shares more affordable to smaller or retail investors. This does not increase the market capitalization or shareholder value but makes trading easier by improving liquidity and accessibility.

References:

Volume 1, Chapter 8:Equity Securities, section on "Stock Splits and Consolidations," describes the purpose and benefits of stock splits for investors, particularly in terms of affordability and liquidity​.

Warrants are securities issued by a company to existing shareholders, giving them the right to purchase additional shares at a predetermined price, often over a longer period (years). Warrants are typically used as an incentive or as part of financing arrangements.

This differs from rights, which are similar but usually have a shorter exercise period, often weeks.

Study Document References:

Volume 1, Chapter 8:Warrants and Rights, discussing their features and purposes​​.

Using Moody’s long-term rating scale,Caais assigned to obligations that are speculative and subject to very high credit risk. This rating indicates that the issuer is highly vulnerable to adverse conditions, though it has not yet defaulted.

C (Option A):Indicates obligations that are in default.

B (Option B):Reflects obligations with speculative elements and higher risk than investment-grade ratings.

Ba (Option C):Denotes speculative-grade credit but with lower risk compared to Caa.