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CSI Canadian Securities Course Exam 1 CSC1 Exam

Attempt the CSI Certifications practice test and solve real exam-like CSC1 questions to prepare efficiently and increase your chances of success. Our CSI CSC1 practice questions match the actual Canadian Securities Course Exam 1 exam format, helping you enhance confidence and improve performance. With our CSC1 practice exam software, you can analyze your performance, identify weak areas, and work on them effectively to boost your final CSI Certifications exam score.

Vendor:	CSI
Exam Name:	Canadian Securities Course Exam 1
Registration Code:	CSC1
Related Certification:	CSI Certifications
Exam Audience:

Total Questions

100

Last Updated

26-08-2026

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Question: 1

Based on market capitalization. which sector of the SSP.'TSX Composite index has one of the highest weightings within the index?

AEnergy

BHealth care

CUtilities

DInformation technology

Answer: A

Explanation:

The Energy sector is one of the highest-weighted sectors in the S&P/TSX Composite Index based on market capitalization. This reflects Canada's resource-rich economy, where energy companies, including oil, gas, and related services, make up a significant portion of the market.

Other options:

Health care: A relatively small portion of the index.

Utilities: Have a smaller weight compared to energy.

Information technology: While growing, it has not surpassed energy in weight within the Canadian market.

Volume 1, Chapter 8: Equity Securities, section on 'Canadian Market Indexes' outlines the composition and sectoral weightings of the S&P/TSX Composite Index.

Question: 2

Under which circumstance is an option considered to be in-the-money?

AWhen a call option with the price of the underlying asset is lower than the strike price.

BWhen a put option with the price of the underlying asset is higher than the strike price.

CWhen a put option with the price of the underlying asset is higher than the strike price.

DWhen a put option with the price of the underlying asset is higher than the strike price.

Answer: B

Explanation:

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

For a put option, it is in-the-money when the underlying asset's price is below the 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 is above the strike price.

Question: 3

Anwar is placing a market order to purchase 100 shares of AJL when the bid/ask is $10.25."$ 10.75. Before the trade is complete, the bid/ask moves to $10.207S1Q70. What is the share price that Anwar will pay on the purchase transaction?

A$10.70

B$10.75

C$10.29

D$10.20

Answer: A

Explanation:

A market order executes immediately at the best available ask price for a purchase transaction. In this case, the bid/ask initially was $10.25/$10.75. However, before execution, the ask price updated to $10.70, meaning Anwar will pay $10.70 per share.

Why Other Options are Incorrect:

B . $10.75: This was the previous ask price but is no longer valid after the update.

C . $10.29: This value is not relevant to the current bid/ask spread.

D . $10.20: This represents the updated bid price, which applies to sell orders, not buy orders.

Reference: CSC Volume 1, Chapter 9, 'How Securities are Bought and Sold -- Types of Orders' explains market orders and their execution at the prevailing ask price.

Question: 4

What is the Impact from a security price increase on the investor holding a long margin position?

AThe investor will incur a loss equivalent lo the difference be-ween the purchase and sale price.

BThe investor must immediately pay interest on the excess margin amount

CThe Investor must provide additional funds to cover the price difference

DThe investor has access to additional funds from the account available for withdrawal.

Answer: D

Explanation:

When a security price increases in a long margin position, the equity in the margin account increases. The investor gains additional buying power and may withdraw excess margin, which represents the difference between the current equity and the margin requirement.

Option A: Incorrect; the investor would incur gains, not losses.

Option B: Incorrect; interest is charged on borrowed amounts, not excess margin.

Option C: Incorrect; additional funds are not required when equity rises.

Question: 5

What is one key feature of a right?

AShares trade ex-rights beginning one business day before the record date

BThe subscription or offering price or rights is often set at the current market price of the shares.

CRights generally have very little time value because they have a short lifespan

DThe market values of rights are set when they ate issued and remain constant until expiration

Answer: C

Explanation:

Rights are short-term privileges offered to shareholders, allowing them to purchase additional shares at a discounted price before a specified expiration date. Due to their short lifespan, rights typically have limited time value, which decreases as the expiration date approaches.

Option A: Shares trade ex-rights after the record date.

Option B: The subscription price is set below the market price, not equal to it.

Option D: Market values fluctuate based on trading activity and are not constant.

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