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​.

An option is "in-the-money" when it has intrinsic value:

For aput option, it is in-the-money when the underlying asset’s price isbelowthe strike price, allowing the holder to sell the asset at a higher price (strike price).

Incorrect options clarify the following:

A call option is in-the-money when the underlying asset’s price isabovethe strike price.

Profit from a short sale is calculated as the difference between the selling price and the covering price, multiplied by the number of shares:

Profit=(12.75−10.15)×1,500=2.60×1,500=3,900\text{Profit} = (12.75 - 10.15) \times 1,500 = 2.60 \times 1,500 = 3,900Profit=(12.75−10.15)×1,500=2.60×1,500=3,900

References:Volume 1, Chapter 9 ("Short Selling")​.