CSC Exam 2 Exam Study Guide (2026)
Everything the Canadian Securities Course (CSC) Exam 2 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 2 study notes for “Fundamental and Technical Analysis”
Our first full set of comprehensive notes, about 10 minutes of reading: Fundamental analysis: top down · Ratios you must know · Technical analysis · Efficient markets, 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. Fundamental and Technical Analysis
Valuing companies from their numbers, and reading price charts.
Key facts
- Fundamental analysis looks at the economy, industry and company.
- P/E = price ÷ earnings per share; dividend yield = dividend ÷ price.
- Debt-to-equity measures financial leverage.
- Technical analysis studies price and volume patterns, trends and moving averages.
- The efficient market hypothesis says prices already reflect available information.
Flashcards
Exam tip: If the data in the question is a chart or volume, it's technical; if it's earnings or ratios, it's fundamental.
2. The Portfolio Approach
Risk, return and how portfolios are built for a client.
Key facts
- Standard deviation measures total volatility; beta measures market (systematic) risk.
- Diversification reduces non-systematic risk only.
- Asset allocation is the biggest driver of long-run portfolio results.
- Strategic allocation sets long-term targets; tactical allocation makes short-term shifts.
- The investment policy statement records the client's objectives and constraints.
Flashcards
Exam tip: Match risk measures: beta for market risk, standard deviation for total risk.
3. Mutual Funds
How mutual funds are structured, priced and sold in Canada.
Key facts
- NAVPS = (assets − liabilities) ÷ units outstanding.
- Funds use forward pricing at the next NAVPS after the order.
- The Fund Facts document must be delivered to buyers.
- Right of withdrawal: within 2 business days after receiving the Fund Facts.
- The MER reduces returns every year.
Flashcards
Exam tip: A fund's price is never 'the price right now' during the day. That's the ETF.
Test yourself on these topics
Take the free 15-question CSC Exam 2 test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Exchange-Traded Funds
ETF structure, trading and uses.
Key facts
- ETFs trade on exchanges throughout the day.
- Most ETFs track an index and have low MERs.
Flashcards
Exam tip: Leveraged/inverse ETFs held for months can drift far from the expected multiple. That's the usual trap.
5. Alternative, Managed and Structured Products
Segregated funds, hedge funds, liquid alts, PPNs and managed accounts.
Key facts
- Segregated funds are insurance contracts with 75% to 100% maturity and death benefit guarantees.
- Hedge funds use leverage, short selling and derivatives, usually sold in the exempt market.
Flashcards
Exam tip: Guarantees on segregated funds come from the insurer, so they're only as good as the insurer.
6. Canadian Taxation
How investment income is taxed and the registered plans that shelter it.
Key facts
- Interest is fully taxable; eligible dividends get the dividend tax credit; 50% of capital gains is taxable.
- Capital losses offset capital gains; unused losses carry back 3 years or forward indefinitely.
Flashcards
Exam tip: Rank after-tax income: capital gains and eligible dividends are taxed less than interest at most income levels.
7. Fee-Based Accounts and Retail Clients
Account and fee structures, and serving retail clients.
Key facts
- Fee-based accounts charge an asset-based fee instead of commissions.
- Commission-based accounts may suit infrequent traders.
Flashcards
Exam tip: Fee-based isn't always better: for a client who rarely trades, commissions may cost less.
8. Working with the Institutional Client
How the institutional side of a dealer works.
Key facts
- Institutional clients include pension funds, insurers, mutual funds and governments.
- They trade large blocks through institutional sales and trading desks.
Flashcards
Exam tip: Sell side = dealers selling services; buy side = institutions doing the buying.
How to pass
- Investment analysis and the portfolio approach are 36% of the exam together. Know the ratios (P/E, dividend yield, debt-to-equity) and what beta and standard deviation measure.
- Tax questions are only about 6% but are easy points: RRSP vs TFSA vs RESP vs FHSA, capital gains inclusion, the dividend tax credit, attribution rules.
- You need 60% to pass, with up to three attempts within your enrolment period.
- Learn the difference between a mutual fund trust and a mutual fund corporation, and between NAVPS pricing and ETF market pricing.
Frequently asked questions
How long should I study for the CSC Exam 2 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 2 exam online?
Yes. CSC Exam 2 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 2 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 fundamental and technical analysis, the portfolio approach, mutual funds, exchange-traded funds, alternative, managed and structured products, canadian taxation, fee-based accounts and retail clients, working with the institutional client. Use the free practice test to see which ones you need most.
The premium CSC Exam 2 study path
Premium CSC Exam 2 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
- 1Fundamental and Technical Analysis8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Notes free with an account
- 2The Portfolio Approach8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 3Mutual Funds8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 4Exchange-Traded Funds8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 5Alternative, Managed and Structured Products7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 6Canadian Taxation7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 7Fee-Based Accounts and Retail Clients7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 8Working with the Institutional Client7 key notes, 100 flashcards, then 375 practice questions in 15 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).