Canadian Securities Course (CSC) Practice Exam

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Prepare for the Canadian Securities Course Exam with our comprehensive quiz. With flashcards and multiple-choice questions, each equipped with hints and detailed explanations, you'll build the knowledge you need to succeed in your exam.

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What type of securities are typically traded in a dealer market?

Stocks only
Bonds only
Both stocks and bonds
Derivatives

The correct answer is: Bonds only

Typically, bonds are traded in a dealer market because they are considered fixed income securities. These types of securities are usually not as liquid as stocks and have longer maturity dates, making them better suited for a dealer market where prices can fluctuate based on supply and demand. Stocks, on the other hand, are more commonly traded in a auction market where buyers and sellers directly interact to determine the market price. Derivatives, while also traded in dealer markets, are not typically considered primary securities and are instead based on underlying assets such as stocks or bonds. Therefore, A, C, and D are incorrect as they do not fully encompass the range of securities traded in a dealer market.