CIRO RSE : Retail Securities Exam

  • Exam Code: RSE
  • Exam Name: Retail Securities Exam
  • Updated: Aug 21, 2026
  • Q & A: 122 Questions and Answers

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CIRO RSE Exam Syllabus Topics:
SectionWeightObjectives
Topic 1: Mutual Funds and Exchange-Traded Funds (ETFs)20-24%- Mutual fund structures, features, and fees
- Fund performance evaluation and suitability considerations
- ETF structures, trading mechanisms, and characteristics
Topic 2: Know Your Client (KYC), Know Your Product (KYP), and Suitability18-22%- Suitability assessment and investment recommendations
- Client objectives, risk tolerance, time horizon, and financial circumstances
- Client information gathering and account opening requirements
Topic 3: Portfolio Construction and Investment Concepts10-14%- Portfolio risk and return concepts
- Investment strategies and client portfolio management
- Asset allocation and diversification principles
Topic 4: Structured Products10-14%- Benefits, risks, and suitability considerations
- Types and features of structured products
Topic 5: Fixed Income Securities18-22%- Fixed income investment strategies and risks
- Bond pricing, yields, duration, and interest rate risk
- Fixed income products and market characteristics
Topic 6: Equities18-22%- Equity securities characteristics and valuation
- Risks and taxation considerations of equity investments
- Equity markets, trading, and investment strategies
CIRO Retail Securities Sample Questions:

1. A company has total liabilities of $500,000 and total shareholder's equity of $200,000 for the previous year. If the total liabilities grew by 20% and total shareholder's equity grew by 50% in the current year, what is the debt-to-equity ratio for 2025?

A) 2.00
B) 1.50
C) 3.00
D) 2.50


2. What is the primary responsibility of an Investment Dealer when considering whether to allow a client to trade on margin?

A) To certify that the client has sufficient funds to cover any potential losses from trading on margin
B) To ensure that the client is aware of the risks and benefits associated with trading on margin
C) To provide margin loans at the Investment Dealer's lowest interest rates to capitalize on the leverage
D) To limit the client's trading activity to avoid unnecessary risk associated with trading on margin


3. A company reports net income available to common shareholders of $1,200,000 and declares common dividends of $360,000. What is the dividend payout ratio?

A) 70%
B) 40%
C) 30%
D) 20%


4. Which of the following principles is essential for effective portfolio construction?

A) Diversifying across different asset classes to reduce risk
B) Avoiding an asset allocation strategy to maintain flexibility
C) Concentrating investments in a single asset to maximize returns
D) Allocating funds to investments with highest returns


5. An Investment Dealer materially changes its advisory fee schedule and restricts the range of products available to retail clients. What should the Dealer do concerning relationship disclosure?

A) Provide updated disclosure explaining the material changes to affected clients
B) Update only the Dealer's internal policy manual
C) Provide disclosure only to clients who submit a written complaint
D) Wait until each client places their next trade


Solutions:

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

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