Skip to main content

Canadian Securities Course (CSC) Practice Exam · Question

What is the primary role of a prime broker?

Prime brokers offer a comprehensive suite of services to institutional clients, including securities lending, leveraged trading, cash management, and operationa

Start free practice for Canadian Securities Course (CSC) Practice Exam

335 questions · no signup required · 40 free questions per day

Start Practice →

Question: What is the primary role of a prime broker?

Answer options:

  • To provide investment advice to retail clients. ✅ To offer specialized services like securities lending and leveraged trading for institutional clients such as hedge funds.
  • To manage the underwriting process for initial public offerings (IPOs).
  • To administer mutual funds and calculate their Net Asset Value (NAV).

Correct answer: To offer specialized services like securities lending and leveraged trading for institutional clients such as hedge funds.

Explanation: Prime brokers offer a comprehensive suite of services to institutional clients, including securities lending, leveraged trading, cash management, and operational support, particularly for hedge funds.

Start free practice for Canadian Securities Course (CSC) Practice Exam

335 questions · no signup required · 40 free questions per day

Start Practice →

More about Canadian Securities Course (CSC) Practice Exam

Related Questions

More for Canadian Securities Course (CSC) Practice Exam candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Canadian Securities Course (CSC) Practice Exam Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.