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Canadian Securities Course CSC1 Syllabus Exam Questions Answers

Page: 5 / 8
Total 100 questions

Canadian Securities Course Exam 1 Questions and Answers

Question 17

Which statutory right allowsa purchaser to caned their order if a prospectus has a misrepresentation?

Options:

A.

Right of rescission.

B.

Right of action for damages

C.

Right of amended prospectus delivery

D.

Right of withdrawal.

Question 18

Which condition must exist for a company to issue a short Form prospectus?

Options:

A.

The offering is for the purpose of financing a material change in the issuer's business

B.

it already has securities listed and posted for tracing or quoted on an eligible exchange

C.

Its principal asset is cash or cash equivalents, or exchange listing

D.

it is exclusively a reporting issuer in foreign Jurisdictions.

Question 19

Why wouldacorporation choose to issue preferred shares rather than debt?

Options:

A.

Existing assets have excess financing capacity to justify the issue of preferred shares.

B.

The preferred dividend rate usually varies with the market interest rates

C.

issuing preferred shares would reduce the amount of leverage.

D.

The costs for issuing preferred shares are usually kwh than debt.

Question 20

ABT Ltd. is currently trading at $65. An investor buys five ABT July 55 put options for $2each. Ignoring commissions, what price must ABT Ltd. common shares trade at for theinvestor to break even on her put options?

Options:

A.

$55

B.

$57

C.

$53

D.

$63

Page: 5 / 8
Total 100 questions