CSC1 Exam Dumps : Canadian Securities Course Exam 1

TheEnergy sectoris one of the highest-weighted sectors in theS&P/TSX Composite Indexbased on market capitalization. This reflects Canada's resource-rich economy, where energy companies, including oil, gas, and related services, make up a significant portion of the market.

Other options:

Health care: A relatively small portion of the index.

Utilities: Have a smaller weight compared to energy.

Information technology: While growing, it has not surpassed energy in weight within the Canadian market.

References:

Volume 1, Chapter 8:Equity Securities, section on "Canadian Market Indexes" outlines the composition and sectoral weightings of the S&P/TSX Composite Index​.

In an equity transaction,marginrefers to the loan that a dealer extends to a client to facilitate the purchase of securities. The client pays a portion of the purchase price (the margin requirement), while the dealer provides the remainder as a loan. This enables clients to leverage their investments and potentially enhance returns, albeit with increased risk.

Other options:

Amount paid by a client when using credit to buy securities: Describes the margin requirement but does not fully define margin.

Good-faith deposit to ensure future financial obligations: Refers to initial margin in derivatives trading, not equity transactions.

Interest paid by the client to borrow securities: Refers to short-selling, not buying on margin.

References:

Volume 1, Chapter 9:Equity Transactions, section on "Margin Accounts" explains the mechanics of margin trading and loans​.

The description of a company's fixed assets, including details about their nature, valuation methods, and depreciation, is typically found in thenotes to the financial statements. Thesenotes provide additional context, explanations, and details about the figures presented in the financial statements. The statement of financial position will list fixed assets, but the comprehensive description is found in the notes.

References:

Volume 1, Chapter 11:Corporations and Their Financial Statements, section on "Notes to the Financial Statements" describes how notes are used to provide critical details about items in the financial statements, including fixed assets​.