CSC Exam 1 Exam Study Guide (2026)
Everything the Canadian Securities Course (CSC) Exam 1 tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 100 multiple-choice questions |
|---|---|
| Time | 2 hours |
| Passing score | 60% |
| Format | Closed book, computer-based |
| Certifying body | Canadian Securities Institute (CSI) |
| Test provider | Remote proctoring or an in-person test centre, booked through CSI |
Mind map: the whole exam on one screen
Read the complete CSC Exam 1 study notes for “The Canadian Securities Marketplace”
Our first full set of comprehensive notes, about 10 minutes of reading: How the system is regulated · Primary and secondary markets · Investor protection · Who's who among market participants, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.
1. The Canadian Securities Marketplace
Who's who in Canadian markets: dealers, marketplaces, regulators and investor protection.
Key facts
- Provincial and territorial securities commissions regulate securities; they coordinate through the CSA.
- CIRO (formed 2023 from IIROC and the MFDA) regulates investment dealers, mutual fund dealers and marketplace trading.
- Primary market: new issues sold to investors. Secondary market: existing securities traded between investors.
- CIPF protects client assets if a member firm becomes insolvent: up to C$1 million per account category.
- OBSI handles unresolved client complaints and can recommend compensation up to C$350,000.
Flashcards
Exam tip: CIPF is about firm insolvency, not investment losses. If a question mentions a falling share price, CIPF doesn't apply.
2. The Canadian Economy
Economic indicators, the business cycle, and monetary and fiscal policy.
Key facts
- GDP measures the total value of goods and services produced.
- The business cycle runs expansion, peak, contraction, trough, recovery.
- The Bank of Canada runs monetary policy, targeting 2% inflation (inside a 1% to 3% range) mainly through the overnight rate.
- Fiscal policy is government taxing and spending.
- Real return ≈ nominal return − inflation.
Flashcards
Exam tip: If the answer choice is a tax or spending change, it's fiscal policy, no matter how the question frames it.
3. Features of Fixed-Income Securities
Bond terms, issuers and the features that change who bears the risk.
Key facts
- Face (par) value, coupon rate and maturity date define a bond's cash flows.
- Debentures are unsecured; mortgage bonds are secured by specific assets.
- T-bills are sold at a discount and mature at face value.
- Callable bonds favour the issuer; retractable and extendible features favour the holder.
- Strip bonds pay no coupons and are bought at a deep discount.
Flashcards
Exam tip: Ask who has the option. Options that benefit the issuer lower the bond's price; options that benefit the holder raise it.
Test yourself on these topics
Take the free 15-question CSC Exam 1 test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Pricing and Trading Fixed-Income Securities
The price-yield relationship, yield measures and interest-rate risk.
Key facts
- Bond prices move inversely to yields.
- Current yield = annual coupon ÷ market price.
Flashcards
Exam tip: For any rate question, draw a quick seesaw: yields up, prices down, and longer bonds swing furthest.
5. Common and Preferred Shares
Rights of shareholders, preferred share features and how dividends are taxed.
Key facts
- Common shareholders usually vote and share in growth, but rank last in liquidation.
- Preferred shareholders receive fixed dividends before common shareholders.
Flashcards
Exam tip: Dividend tax credit applies only to Canadian corporations' dividends; foreign dividends are taxed like interest.
6. Equity Transactions
Account types, orders, margin and short selling.
Key facts
- Cash accounts require full payment; margin accounts let clients borrow part of the cost.
- Market orders fill at the best available price; limit orders set a maximum or minimum price.
Flashcards
Exam tip: Long positions risk the purchase amount; short positions risk an unlimited amount. That one fact answers many risk questions.
7. Derivatives
Options, forwards, futures and how they're used to hedge or speculate.
Key facts
- Options give the buyer a right; the writer takes an obligation.
- Calls are the right to buy; puts are the right to sell.
Flashcards
Exam tip: Buyer = right, writer = obligation. Read which side the question is asking about.
8. Corporations and Their Financial Statements
Corporate structure and the statements analysts read.
Key facts
- The balance sheet shows assets, liabilities and shareholders' equity at a point in time.
- The income statement shows revenue, expenses and profit over a period.
Flashcards
Exam tip: If a ratio question mentions 'short-term ability to pay', it's a liquidity ratio such as the current ratio.
9. Financing and Listing Securities
How companies raise capital and list on an exchange.
Key facts
- Public offerings generally need a receipted prospectus with full, true and plain disclosure.
- Exempt distributions (for example to accredited investors) can proceed without a prospectus.
Flashcards
Exam tip: Bought deal = underwriter's risk; best efforts = issuer's risk.
How to pass
- 100 questions in 2 hours is 1 minute 12 seconds each. Bond pricing and yield questions take longer, so bank time on the definition questions.
- You need 60% on each exam, and CSI gives you three attempts per exam within your enrolment period.
- Learn the bond-price/yield seesaw until it's automatic: when yields rise, prices fall, and longer bonds move more.
- Preferred share features (cumulative, retractable, convertible, callable) come up often. Know who each feature benefits.
Frequently asked questions
How long should I study for the CSC Exam 1 exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the CSC Exam 1 exam online?
Yes. CSC Exam 1 can be written remotely with a proctor or in person at a test centre. Format: closed book, computer-based. Check the current exam guide for the rules.
What score do I need to pass the CSC Exam 1 exam?
60%. The exam has 100 multiple-choice questions and a time limit of 2 hours.
What are the most tested topics?
The outline covers the canadian securities marketplace, the canadian economy, features of fixed-income securities, pricing and trading fixed-income securities, common and preferred shares, equity transactions, derivatives, corporations and their financial statements, financing and listing securities. Use the free practice test to see which ones you need most.
The premium CSC Exam 1 study path
Premium CSC Exam 1 prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.
Your step-by-step study path
- 1The Canadian Securities Marketplace7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25Notes free with an account
- 2The Canadian Economy7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25Premium
- 3Features of Fixed-Income Securities7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25Premium
- 4Pricing and Trading Fixed-Income Securities7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 5Common and Preferred Shares7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 6Equity Transactions7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 7Derivatives6 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 8Corporations and Their Financial Statements6 key notes, 85 flashcards, then 325 practice questions in 13 sets of 25Premium
- 9Financing and Listing Securities6 key notes, 85 flashcards, then 325 practice questions in 13 sets of 25Premium
- Final step: 6 full mock exams100 questions each, timed like test day. Pass them, then book your exam.Premium
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Summarized from CSI's and CIRO's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Canadian Securities Institute (CSI).