CIRO RSE : Retail Securities Exam

  • Exam Code: RSE
  • Exam Name: Retail Securities Exam
  • Updated: Aug 14, 2026

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CIRO RSE Exam Syllabus Topics:

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

CIRO Retail Securities Sample Questions:

1. A Registered Representative (RR) is comparing two companies and correctly calculates their interest coverage ratio as below:
Company A: 1.3
Company B: 1.9
Both the companies have the same interest expense during the period. Which of the following is correct with respect to the two companies?

A) Total Assets of Company B are higher than Total Assets of Company A
B) Total Debt of Company B is higher than Total Debt of Company A
C) Net Profit Margin % of Company B is higher than Net Profit Margin % of Company A
D) Earnings before Interest and Tax (EBIT) of Company B is higher than the EBIT of Company A


2. Which of the following is a key factor in valuing a manufacturing company's stock?

A) Inflation
B) Interest rates
C) Consumer sentiment
D) Production efficiency


3. A professional holds separate accounts for safe and risky investments and thinks they need to make the risky account less risky, without considering that the safe account is already doing so. Which bias is this?

A) Loss aversion
B) Overconfidence
C) Herd mentality
D) Mental accounting


4. An investor is assessing common shares of a Canadian firm expanding through acquisitions. Which risk should they analyze as most threatening to their investment's value if the firm funds growth by issuing new equity, and why?

A) Constrained price upside, because it limits capital gains
B) Volatile trading spreads, because they erode transaction gains
C) Share dilution effects, because they reduce ownership stakes
D) Capped income streams, because they restrict cash flow growth


5. How does the framing effect influence investment decisions?

A) Investors overestimate their ability to predict market movements
B) Investors make different choices based on how information is presented
C) Investors seek information that supports their existing beliefs
D) Investors categorize money into different mental accounts


Solutions:

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

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