EMT Practice Test

1. Question Content...

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Question1: Anwar is placing a market order to purchase 100 shares of AJLwhen the bid/ask is $10.25."$ 10.75. Before the trade is complete, the bid/ask moves to $10.207S1Q70. Whatis the share pricethat Anwar will pay on the purchase transaction?

Question2: Diana was appointed a senior vice president of the ABC inc. She is also a member of the board of XYZ Company where ABC inc, is a % stockholder. What best describes Diana's insider reporting obligations to the regulator?

Question3: An investor wants to gain exposure to the Canadian stock market with minimal risk exposure. What is the test financial instrument for this investor?

Question4: Which group is generally considered aprimary derivative dealer in the over-the-counter markets?

Question5: A large number of well-trained, willing-to-work individuals have given up trying to find employment. All else being equal, how will the labor market indicators be affected by this event.

Question6: Which bend is the most volatile, assuming the same coupon rate and creditquality?

Question7: Using the Moody's long-term rating scale, which rating is best suited for an obligation that is not yetin default, out is considered speculative andsubject to very high credit risk?

Question8: What is one key feature of futures?

Question9: An investor has earned additional Income and is looking to invest in a security that guarantees returns over.
The next seven years. What is the Best option for purchase?

Question10: An investor feels unfairly treatedby a stockbroker regarding a setof transactions. After a discussion of the situation Between the investor and the member, the investor and the member, the investor is still dissatisfied.
What is the best requestthat the investor could make to seek compensation?

Question11: What order would an investor use to protecta short position?

Question12: What is the main benefit of investing in preferred shares?

Question13: Which statutory right allowsa purchaser to caned their order if a prospectus has a misrepresentation?

Question14: What is the normal shape of a yield curve?

Question15: What type of unemployment is caused by normal labour turnover such as completing school or changing employment?

Question16: Why does thefederalgovernment borrow from the capital markets?

Question17: What is the best long-term strategy for themunicipality to improve Us credit rating?

Question18: When a company issues a number of common shares, some of which areheld by institutional investors, what are the institutional investors' shares known as?

Question19: What is one feature of a generalpartnership?

Question20: Based on market capitalization. which sector of the SSP.'TSX Composite index has one of the highest weightings withinthe index?

Question21: Which derivatives transactionhas the greatest default risk?

Question22: What Is the requirementestablished by the Canadian Radio-television and Telecommunications Commission that applies to an advisor who is cold calling potential new clients?

Question23: Billy owns shares of 143 Financing inc, in a discretionary account. He wants to exercise his right to vote at the company's annual general meeting, but will be away on a business trip. Who can vote on Billay's behalf?

Question24: What is margin in an equity transaction?

Question25: Which regulatory body is responsible for thesurveillanceof trading and market-related activities of participants on Canadian equity marketplaces?

Question26: What is a characteristicof provincial savings bonds that distinguishes them from other provincial bonds?

Question27: Which condition must exist for a company to issue a short Form prospectus?

Question28: What is one key feature of a right?

Question29: A bond with a duration of five is currently priced at $103. If Interestrates rise by 2%. approximately what win be me bond's price?

Question30: What financial instrument is derived from thevalue of an underlying asset?

Question31: Under which circumstance is an option considered to be in-the-money?

Question32: Which investment dealer category do discount brokers belong to?

Question33: What action must an investment advisor take when submitting a trade ticket for a short sale?

Question34: The Bank of Canada uses anoperating band to help manage the oversight rate. Howwide is the operating Band?

Question35: Who in a sell-side firm is responsible for structuring new debt issues and bringing them to the primary market?

Question36: What is an example of a common feature of robo-advisor services?

Question37: What is the role thatthe dealer memberis taking when a client's order for an unlisted security is filled directly from inventory rather than on the exchange?

Question38: On what is the dividend rate for rate-reset preferred shares based?

Question39: The principleof retraction in retractable preferredshares is identical to what other security?

Question40: Whataction is anexchange likely to take when the publicdistribution of a given securityhas dwindled to anunacceptablylow level?

Question41: What is unique to a shortmargin position?

Question42: An emerging Canadian company is exploring the possibility of using hotwater springs to produce clear energy forremote rural communities.The company has strong human resource capital and few assets, and raised SI
20,000 through the Capital Pool Company program. Which option is best for this company to continue maximizing public exposure and raising capital?

Question43: What is unique to responsible investment?

Question44: Haw are retail stock and bond transactions settledon a daily basis amongdealers?

Question45: What will happen ita country's central government is at risk of defaulting on its debt?

Question46: What is the main benefit for the investors when a company announces a stock spit?

Question47: Which security is issued by a company lo existing shareholders allowing, them to subscribe for additionalshares over a period of severalyears?

Question48: Where would the description da company's fixed assets normallybe found?