Canadian Securities Course (CSC) Practice Exam

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Practice for the Canadian Securities Course (CSC) exam with our quiz. Test your knowledge with multiple-choice questions. Be prepared for the real exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the purpose of an "After-market stabilization" arrangement in the context of newly issued stocks?

To limit the trading of the new stocks
To promote insider trading
To support the offer price of newly issued stock in the secondary market
To prevent stockholders from selling their shares

The correct answer is: To support the offer price of newly issued stock in the secondary market

An "After-market stabilization" arrangement is a mechanism used to support the offer price of newly issued stock in the secondary market. This means it helps to keep the price of the stock stable and prevent it from dropping too quickly after it is initially issued. Option A is incorrect as it does not refer to any trading limits. Option B is incorrect as insider trading is illegal and should not be promoted. Option D is incorrect as it does not mention any restriction on stockholders from selling their shares.