Retail Securities Exam
Last Update Sep 20, 2026
Total Questions : 120
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A professional holds separate accounts for safe and risky investments and thinks they need to make the risky account less risky, without considering that the safe account is already doing so. Which bias is this?
Which of the following best summarizes the disclosure requirements for a prospectus?
A client wants to buy a recreational vehicle costing $25,000 in 3 years. They plan to make deposits of $630 at the start of each month into an investment account. What approximate annualised return is required to achieve their goal?
A client owns a stock currently trading at $55 and wants the shares sold if the price declines to $50. Once the trigger price is reached, execution is more important than obtaining a specific minimum price. Which order is most appropriate?
How does asset class selection for an investment portfolio affect liquidity risk?
A Registered Representative (RR) examines a mutual fund’s prospectus amid rising market uncertainty and sector shifts. How do mutual funds typically rank volatility to guide investor decisions on risk?
What is the primary purpose of collecting client information as part of the know-your-client (KYC) obligation?
A client invests $20,000 today in an account earning an annual compound return of 5%. Approximately how much will the investment be worth after six years, assuming no additional deposits or withdrawals?
A Registered Representative learns that a client has retired unexpectedly, experienced a substantial reduction in income and will begin making regular withdrawals from the portfolio. What should the RR do first?
A client’s Trusted Contact Person calls the Registered Representative and instructs the RR to sell all securities in the client’s account because the client is experiencing memory problems. What should the RR do?
An investor insists on excluding companies with low diversity and inclusion scores from their portfolio. The Registered Representative (RR) identifies that this restriction significantly reduces the number of available investments in the investor’s preferred sector. What is the most appropriate action?
A five-year bond has a face value of $1,000, an annual coupon of $60 and a market price of $950. Using the approximate yield-to-maturity formula, what is the bond’s approximate yield to maturity?
Which of the following is a key principle used by auditors to evaluate the significance of various financial statement items in their audit report?
An Investment Dealer materially changes its advisory fee schedule and restricts the range of products available to retail clients. What should the Dealer do concerning relationship disclosure?
An Investment Dealer executes a client’s trade at a worse price than what was available on another exchange, despite having access to the better option. Which CIRO rule has been violated?
A Registered Representative (RR) is invited to an investment seminar on methods of investment strategy used by the sponsoring fund provider. What is the appropriate action for the RR?
Which feature gives a bondholder the right to require the issuer to redeem the bond at a specified price on specified dates?
Which valuation approach is the most appropriate to determine if a stock is overvalued or undervalued?
A Registered Representative (RR) places a large order for a stock in their personal account before placing the same order for a client. What Universal Market Integrity Rules (UMIR) violation is this most likely to be?
What is the primary purpose of an Investment Dealer's client welcome package?
An investor holds a bond portfolio consisting of long-term and short-term bonds. The long-term bonds have an average modified duration of 10 years, while the short-term bonds have an average modified duration of 3 years. If interest rates increase by 1%, what is the likely impact on the portfolio’s value?
A Canadian investor holds investments in a non-registered account. Which type of income may generally qualify for the Canadian dividend gross-up and dividend tax credit mechanism?
What advantages can an alternative strategy fund offer to a portfolio of main market equity tracker funds?
A Registered Representative (RR) is comparing two companies and correctly calculates their interest coverage ratio as below:
Company A: 1.3
Company B: 1.9
Both the companies have the same interest expense during the period. Which of the following is correct with respect to the two companies?
An Investment Dealer notices a pattern of unsuitable unsolicited trades in an investor’s account. What action should the Investment Dealer take?
What must be calculated when any portion of the money balance in a cash account is overdue by less than 6 business days?
An investor is deciding between investing in a company with strong earnings, but high volatility or another company with stable returns, but slower growth. How would fundamental analysis influence this decision?
An investor holds mining shares as the economy enters a recession. How do the economic cycle and market sector most likely influence the performance expectations of these shares over a 6-month horizon, considering the sensitivity of mining stocks to economic conditions?
A retail client is 25-year-old with a stable income, a high risk profile and has a good understanding of the securities and the securities market. They wish to open an account that allows them to take responsibility for their own investment decisions and allow them to seek growth opportunities in the securities markets. Under account appropriateness rules, which seems most appropriate?
An investor is evaluating how high inflation impacts securities prices and market movements. Which of the following outcomes is most consistent with the effects of high inflation on the economy and investor expectations?
A mutual fund has total assets of $84 million, liabilities of $9 million and 3 million units outstanding. What is the fund’s net asset value per unit?
An investor is choosing between two bonds: Bond A with a term to maturity of 2 years and Bond B with a term to maturity of 10 years. If interest rates are expected to rise sharply next year and assuming all other things are equal, which bond should the investor select to minimize interest rate risk?
An investor is considering purchasing a preferred share that provides a fixed dividend for an extended period, with no set maturity date. Which type of preferred share best meets the investor’s considerations?
A company reports net income available to common shareholders of $1,200,000 and declares common dividends of $360,000. What is the dividend payout ratio?
A client purchased a stock for $70 per share. The company’s financial condition has since deteriorated, and an updated analysis estimates the shares are worth approximately $42. The client refuses to consider selling until the price returns to $70 because that was the original purchase price. Which behavioural bias is most directly influencing the client?
TESTED 20 Sep 2026
