CIRO RSE : Retail Securities Exam

RSE real exams

Exam Code: RSE

Exam Name: Retail Securities Exam

Updated: Aug 10, 2026

Q & A: 122 Questions and Answers

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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Structured Products10–14%- Applicable regulatory rules
- Product types and risk profiles
Topic 2: Fixed Income18–22%- GICs and other retail fixed-income products
- Bond characteristics and pricing
Topic 3: Portfolio Construction and Managed Accounts10–14%- Asset allocation and risk metrics
- Registered account types
Topic 4: Equities18–22%- Equity product features and risks
- Trading mechanics and market structure
Topic 5: Trade Execution and Market Integrity8–12%- Order routing and best execution
- Prohibited practices and compliance
Topic 6: Client Monitoring and Relationship Management8–12%- Complaint handling procedures
- Performance reporting and CRM2
Topic 7: Mutual Funds and ETFs20–24%- Suitability and sales obligations
- Fund structures and disclosure documents
Topic 8: KYC and Suitability20–24%- Client information collection and updates
- Suitability determination and documentation

CIRO Retail Securities Sample Questions:

1. An investor purchased 800 shares of a company at $15 per share in 2015, with a commission fee of 2% of the total purchase price. In 2019, they sold all 800 shares at $17 per share, incurring a flat commission fee of $40.
What is the investor's taxable capital gain, assuming a 50% inclusion rate?

A) $660
B) $800
C) $560
D) $720


2. A retail client is 25-year-old with a stable income, a high risk profile and has a good understanding of the securities and the securities market. They wish to open an account that allows them to take responsibility for their own investment decisions and allow them to seek growth opportunities in the securities markets. Under account appropriateness rules, which seems most appropriate?

A) A balanced mutual fund account composed of a mix of equities and bonds
B) Direct electronic access (DEA) account
C) Order execution only (OEO) account
D) An aggressive growth mutual fund to maximize potential returns


3. An institutional-sized client order contains 100,000 shares, but the client wants only 5,000 shares displayed publicly at any time to reduce the order's visible market impact. Which order type is most appropriate?

A) Iceberg order
B) Fill-or-kill order
C) Sell on-stop order
D) Market-on-open order


4. Which of the following best summarizes the disclosure requirements for a prospectus?

A) The company's business plan, 10-year financial projections and proprietary technology
B) The company background, management, finances, risks and future plans
C) The company's marketing strategy and customer demographics
D) The company's potential returns for the investment


5. What is a principal purpose of the Black-Litterman model in portfolio construction?

A) To calculate a bond's current yield from its coupon and price
B) To replace diversification with concentrated stock selection
C) To combine market-implied equilibrium returns with the manager's investment views
D) To guarantee that a portfolio will outperform its benchmark


Solutions:

Question # 1
Answer: A
Question # 2
Answer: C
Question # 3
Answer: A
Question # 4
Answer: B
Question # 5
Answer: C

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