Last Updated: Aug 26, 2026
No. of Questions: 112 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
| Derivatives Fundamentals | ~5–8% | - Options, Futures and Forwards Basics - Risk and Suitability for Derivatives |
| Overview of Regulatory Framework | ~10% | - Market Infrastructure and Protection Funds - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) |
| Prospective Client Relationships | ~10% | - Relationship Discovery and Qualification - Know Your Prospect (KYP) and Disclosures |
| Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Securities and Managed Products | ~19% | - Equities, Fixed-Income and Managed Products - Fund Structures and Product Characteristics |
| Client Complaint Handling and Reporting | ~5% | - Complaint Management Framework - Escalation, Recordkeeping and Reporting |
| Conflicts of Interest and Ethics | ~14–15% | - Conflict Identification, Disclosure and Management - Client-Focused Reforms and Ethical Standards |
| Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
1. When an employee of an Investment Dealer engages in an outside business activity what must they do?
A) Obtain prior written consent of the Investment Dealer
B) Ensure it is closely aligned with their duties to the Investment Dealer
C) Be independently responsible for monitoring and compliance enforcement
D) Only recommend products and services offered by the Investment Dealer
2. Which of the following best describes the key difference between a call option and a put option in an options contract?
A) A call option gives the holder the right to sell an asset; a put option allows buying at market price
B) A call option lets the holder sell, and a put option lets the holder buy, an asset at a set price
C) A call option allows the holder to buy, while a put option allows the holder to sell, at a fixed price
D) A call option buys at a fixed price; a put option gives the holder rights to future dividends
3. A client calls their Investment Dealer to cancel an order to purchase 1,000 shares of a stock. However, the order has already been executed. What is the Investment Dealer's most appropriate action in this situation?
A) The dealer should inform the client they need to file a request with the exchange to cancel order
B) The dealer should cancel the order as per the client's request, regardless of the execution status
C) The dealer should try to reverse the trade as soon as possible by executing a new opposing trade
D) The dealer should inform the client that the order has already been executed and that it cannot be undone
4. What is the primary function of investment banking within the financial markets?
A) Managing the personal investment portfolios for high-net-worth clients
B) Monitoring ongoing compliance of market participants with regulatory rules
C) Assisting companies raise capital, facilitating mergers and acquisitions
D) Conducting day-to-day securities trades for retail and institutional clients
5. A fund takes advantage of corporate actions such as takeovers and mergers to gain an investment advantage. What type of investing is this strategy associated with?
A) A passive bond investment strategy
B) An active bond investment strategy
C) A passive equity investment strategy
D) An active equity investment strategy
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: D |
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