Free Access CSI.CSC2.v2026-02-04.q82 Practice Test (Page 3)

Question 6

A shareholder receives rights from a company through direct ownership in shares. Not expecting to exercise them, she sells the rights on the relevant exchange. What is her capital gain?

A.The current price of the shares less the sale price of the rights.

B.The current share price less the exercise price of the rights.

C.The sale price less the exercise price of the rights.

D.The sale price of the rights.

Question 7

Institutional clients tend to be more sophisticated than retail clients. What benefit does this translate into for CIRO dealer members?

A.They are permitted to make trades on a discretionary basis for their clients.

B.They can organize their firms based specifically on client needs.

C.They are subject to few, if any, investment restrictions.

D.They are free of fiduciary obligations to their clients.

Question 8

What is the primary goal of a buy-side trader?

A.To remain informed at all times of the portfolio manager's detailed investment strategy.

B.To execute the portfolio manager's trades at the best prices available in the market at the time of the trade.

C.To provide pertinent and timely information to the head of fixed-income and equity markets.

D.To maintain good, professional relationships with sales and trading staff of dealers with whom the firm does business.

Question 9

What is a leveraged ETF?

A.A fund that uses an option strategy to reduce the volatility of the underlying portfolio

B.A contract using borrowed funds to buy the underlying stock or portfolio

C.A fund that seeks to match the performance returns of the underlying index tracked

D.An option designed to achieve multiple returns of inverse performance of the tracked underlying index

Question 10

What responsibility falls on the buy-side portfolio manager?

A.To busy securities in the market on demand to maintain liquidity in a security.

B.To maintain constant contact with the investment dealer counterparties.

C.To inform the trade about the market conditions and risks.

D.To provide pertinent market information to the department heads of various asset classes.

Other Version: 309CSI.CSC2.v2026-05-19.q117; 791CSI.CSC2.v2025-04-28.q33

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