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CSC Study Notes & Key Concepts

Concept Vault is CSCprep's focused quick-reference layer for difficult or easily confused Exam 1 and Exam 2 concepts.

The Concept Vault is designed for moments when you know which concept is weak but do not want to search through a full chapter to find the explanation again.

Key Concepts

Condensed explanations of important examinable ideas.

Common Confusions

Review concepts that are easy to mix up in multiple-choice questions.

Connected Practice

Move from concept review directly into chapter questions, calculations or case studies.

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Use free practice to assess your starting point, or explore the complete preparation system for CSC Exam 1 and Exam 2.

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Independent preparation: CSCprep is not affiliated with, endorsed by, or sponsored by the Canadian Securities Institute (CSI) or the Canadian Investment Regulatory Organization (CIRO).

CSC Study Notes, Key Concepts & Exam Review

Concept Vault is CSCprep's branded quick-reference tool. Use it when practice exposes a weak concept and you need a focused refresher rather than rereading an entire chapter.

Coupon Rate vs. Current Yield

Coupon rate is the annual coupon divided by face value. Current yield is the annual coupon divided by the bond's current market price. A bond bought below par can therefore have a current yield above its coupon rate.

Exam Trap: Do not use market price when calculating the contractual coupon payment.

Systematic vs. Unsystematic Risk

Systematic risk affects the broad market and cannot be eliminated through diversification. Unsystematic risk is issuer- or industry-specific and can be reduced through diversification.

Exam Trap: Diversification reduces company-specific risk; it does not eliminate market-wide risk.

More commonly confused concepts

Primary vs. secondary market; risk tolerance vs. risk capacity; mutual fund NAV vs. market-traded ETF price.

Best use

Practice → identify the exact gap → review the concept → immediately answer another question on the same idea.