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!

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What is the purpose of escrowing shares in the context of securities?

Protecting shares from market volatility
Providing shareholders with voting rights
Ensuring stable value and preventing premature share selling
Facilitating quick sale of shares on the market

The correct answer is: Ensuring stable value and preventing premature share selling

Escrowing shares in the context of securities serves the purpose of ensuring stable value and preventing premature share selling. This means that the shares are held by a third party, often a bank or a law firm, until specific conditions are met. This is done to ensure that the value of the shares remains stable and to prevent shareholders from selling their shares before certain requirements are fulfilled. Options A, B, and D are incorrect because they do not fully describe the purpose of escrowing shares in the context of securities.