Canadian Securities Course Exam #1

What is the formula for Accrued Interest? {Ans: Accrued Interest = (par amount) x (Coupon rate/100) x (Time period / 365). To get time period, start counting the days after the last coupon payment, and stop counting the second business day after the transaction date.}Who monitors SRO's? {Ans: The Canadian Securities Administration (CSA).}What does IIROC do? {Ans: It oversees all the investment dealers and trading activity on debt and equity markets in Canada.}What securities are available for reduced margin? {Ans: Securities that demonstrate sufficiently high liquidity and sufficiently low price volatility.}What is the Large Value Transfer System? {Ans: It is an electronic system that allows participating financial institutions to conduct large transactions with each other.}What are some examples of unethical practices? {Ans: Deceiving the public of the price of a transaction, high pressure sales tactics, front running, market manipulation, misleading appearance in markets.}