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Canadian Investment Regulatory Exam

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Canadian Investment Regulatory Exam Questions and Answers

Questions 1

Before purchasing shares in a publicly traded company, it is important to evaluate a key advantage and disadvantage of share ownership. What should be considered?

Options:

A.  

Share ownership often offers fixed payments and guaranteed principal at maturity

B.  

Share ownership provides limited financial risk but no influence on company direction

C.  

Shareholders are generally repaid before bondholders in the event of insolvency

D.  

Share ownership provides potential capital gains and claim on dividends if distributed