What’s Up Next?

Well I actually completed my biggest mass upload of posts yet.  This blog is now packed full of my opinions on the CSC, which I hope you will find useful,  Keep in mind, these are my opinions and I am not claiming that any of them represent a 100% factual guarantee.  I just wanted to provide an overview of my experiences with the CSC.  Although it panned out differently then I would have thought, I have enjoyed it.  I will be leaving a final post here once I receive my exam marks from the Canadian Securities Institute.  If there are any further questions or requests for posts, feel free to leave a message on this post and i’ll do my best to accommodate it.

For those of you interested in following me through my experiences with the Client & Practices Handbook and the Certified Financial Planner programs, the links to those blogs are in the blogroll.  Good luck to those of you who are currently writing or looking to write the CSC exams.  Feel free to contact me anytime at smzachary@gmail.com.

Thanks,

Steve

Done the CSC? What’s Next for You?

So you polished off the CSC, and now you have many different options.  A lot of people choose to polish off the Client & Practices Handbook course, which is another regulatory requirement to trade stocks and bonds (see IIROC‘s website).  You have to ask yourself in which direction you want to go.  I would recommend signing up for and completing the CPH, as it is smaller and more common sense then the CSC.  It should increase your value in the hands of the employer, and increase your knowledge.

I would also give some though to a long term goal like the CFA, CFP, CAIA….etc.  These designations truly set you apart from the crowd, but be diligent in your approach to these courses, as they are no cake walk.  As for me, well I write my CPh exam in under 12 days.  I start studying tomorrow, so if your interested, head on over to the CPH blog I have set up.  A link to it is in the sidebar.  I hope to provide a similar experience on tat blog as I have here, just more consistently.  Take the time to ask yourself questions of where you want to be in the short and long term, and address these needs now.  Proactive planning can do a lot for your financial future.

– Steve

A Quick Note About Bonds…..

I just wanted to say a quick word about bonds.  Volume 1 has a entire chapter dedicated to bonds, which at the time seems a tad out of place.  However, if you read the whole book in one pass you would realize that bonds plays a huge part in the entire CSC course.  Everything seems to in one way or another go back to bonds at some point.  Of course equities also play a large role, but they are not nearly as complicated as bonds are.  Make sure you master the concept of the inverted relationship between bonds and interest rates as well as the volatility characteristics of bonds in certain market conditions.  If you can really nail down the concepts in the bonds chapter, you will be much better off in further chapters.

– Steve

Exam Techniques for CSC-L2

I thought I would revise the CSC-L1 exam techniques a bit to reflect my experiences with the second CSC exam. These are some of the exam techniques I used to CSC-L2 that may help you:

• Spend less time calculating the formulas and more time understanding what they mean; this particular exam seems to emphasize the understanding of what the final number in the formulas mean, more than how to calculate that number.
• Focus on the portfolio management process, taxation and the mutual funds section.  These comprise a huge section of the exam.
• Understand the material, don’t just memorize it.
• Although the chapters on segregated funds, other managed products, hedge funds and so forth were interesting, they didn’t seem to play a huge part

Be prepared.  This exam was difficult, and definately not easier then the first exam as some people have indicated.  There are more complicated mathematical formulas here, and a lot of minute important details.  Definately don’t take this exam lightly.

The Most Difficult Concepts of the CSC (according to me)

To help give prospective students of the CSC a general idea of what is in store for them, I have comprised this list of the most difficult concepts of the Canadian Securities Course (CSC).  Of course, this list is subject to opinion and debate, but let it be a reference guide and an information source for your decision.  Keep in mind, the older this post is the more likely this content will be out of date.  CSC updates its book yearly, so anything beyond 2010 will likely be irrelevant.

• The standard measures of risk (variance, standard deviation, beta)
• The Dividend Discount Model
• The Four Types of Ratio Groupings (Liquidity, Risk-Analysis, Operating-Performance & Value Ratios)
• Any list that has to do with ethics (as it is extremely vauge)
• The concept of short selling
• The differences between Mutual Funds and Segregated funds
• The minute and specific details associated with taxation and different investment products
• Different fee structures for investment products
• The Sharpe ratio
• Bonds vs Interest Rates
• Inflation vs interest rates
• The Divided Discount model vs. the business/equity cycle

These are the topics that I spent the most time understanding.  I wouldn’t say they were “hard” per se, just the most difficult when compared to everything else.

– Steve

CPH & CSC Overlap?

I was flipping through the CPh book today and I realized that a large majority of the tables and figures in the first 100 or so pages were identical to the figures/tables in chapter 23 of the Canadian Securities Course.  I will confirm this on the CPH blog later in the week, but I thought it was worth mentioning it here for people considering taking the CPH later.  The overlap obviously means less work and better retention in the exam, and gives you a general overview of what to expect with the CPH.  I also notices that an entire chapter on securities regulation had similar content to the securities regulation in volume 1 of the CSC.  There may be a good chance that the overlap between the two courses are significant, which will bode well for those who want to get them out of the way at the same time.

I’ll keep you update over at the CPH blog on this development.

– Steve

CSC vs. CFA Part 2

I thought I would briefly revisit this topic before I switched blogs.  I am registered for the CFA June 2009 exam and I have just completed the second CSC exam, still awaiting my marks.  One of the questions people have is the difference between these two courses, and though I can’t really compare material difference until later I want to make a few things more clear:

CSC

• CSC is an entry level REQUIREMENT for the Canadian Securities Industry
• If you live anywhere but Canada, and do not plan on moving to Canada, getting the CSC makes absolutely no sense
• Think of the CSC as a high school diploma for the financial industry
• This is a two part exam, with no work experience requirements and can be completed any time within one year
• Almost anyone, who is anyone in the financial realm has this course, its not an asset, just a basic requirement

CFA

• CFA is a post-graduate program accepted worldwide
• The CFA is a respected worldwide designation and opens international doors around the world
• Think of the CFA as the PhD of the finance realm
• This is at minimum a 2.5 year program with three tests and minimum work experience requirements
• The CFA is a respected designation because it is very difficult to obtain.  The exam is extremely difficult and the process is intended to weed out everyone except those who are either extremely persistent or aptly suited to hold a CFA charter.

So whats the difference.  To best understand this, lets ask a different question.  What are the similarities?  Once I have a chance to further dive into the CFA material I will write a couple posts on the content similarities between the CSC and CFA.  I think it will be interesting to see the level of comprehension both levels provide.  You will be able to find that piece on my CFA site, which is currently on hold until I finish the CPH course on March 9th.

– Steve

I’m Overwhelmed!! How Am I Going to Learn All This Material?

If your asking yourself this, then your human.  Don’t worry its not as hard as it looks.  The best way to work through a large amount of material is by breaking it down into smaller chunks.  First, aim to complete 1 chapter a day for at least 3 days out of a week.  That is a reasonable pace, but a higher pace is recommended if your unemployed or have additional time to spare.  Next, Start on the first chapter and purchase sticky note tabs.  Tab out each of the primary sections (typically 4- 6) for the first chapter and then start reading.  Once you get to the end of the first tab, you’ve accomplished a section.  Now you can move onto the next tab.  Not only does this make things more manageable, but it forces you to recognize transitions in topics and bridges between materials.  This is a highly effective way of managing a large amount of information.

Remember to follow the three basic principles of learning mentioned in my last post: learn, apply, review.  They go by different names sometimes, but they all refer to the same process.  Go through the material, try out the material, and then go back and review the material.  Think of it as a revolving door which you keep going around and around until your ready to go.  Don’t measure yourself with time, measure yourself with your ability to comprehend the material being presented to you in a reasonable manner.  One key point is to shake bad habits.  High school and college teach us how to memorize and regurgitate what is in books.  This is not a skill, and it will not help you in this field.  You may be able to squeak by a entry level course like the CSC by memorizing paragraphs, but you are more then likely to feel the disadvantages to this approach later on in your career.  Learn from the material, understand it and apply it.

How Do I Know If I Am Ready to Write the CSC?

Assuming you are already studying for one of the two exams that comprise the Canadian Securities Course, there are a number of weighs to measure the CSC, none of which are necessarily complex.  The best way to ensure you are reading to write any exam is to follow a three step approach to learning any material, that is; Learn, Apply, Review.  Nothing complex about that, just follow the steps.

• Learn: Review the modules, the FAQ & LOS statements and the forums
• Apply: Complete the online learning activities, post-tests and any other material you may have to test your comprehension.
• Review: For those areas which you have identified as your weakest in the applying stage, you can now concentrate on increasing your comprehension in these areas.

If you follow this process, you likely-hood of passing will substantially increase.  Another good way to test is to get a friend or parent to quiz you.  It puts you on the stop, doesn’t allow you to passively check the answer before fully getting the question correct and it provides you a chance to hang out with some friends.  If any of you have seen Billy Madison, that form of studying is extremely effective, no joke intended.  The best measure of a persons readiness to write any exam is the how that person feels about their abilities.  If by the end of the chapter you have a headache and just want to throw the book against the wall, maybe take the hint that your not ready.  If however you feel yourself comprehending the material on a review stage in greater depth then the last pass-through, take consideration that your studying is working and now its just a question of when the law of diminishing returns will kick in.  Also, when measuring your results, ensure you are scoring at least 80% on every post-test quiz provided on WebCT.  The questions on there and in the exercise are a lot easier then the CSC Level1 & 2 exams, so a 90% will likely translate to a 70% and so on.

– Steve

The Big Bad CSI

I can’t help but chuckle when I look at message boards and see people ranting about how the CSI is a evil organization, hell bent on stealing people’s money by making impossibly hard tests.  Its this type of attitude that makes me happy financial certification tests are getting harder each year.  Check out the statistics, with increasing enrollment in such programs, organizations such as CSI and the CFA Institute among others, have been increasing minimum standards, breadth of knowledge required for testing and pass rates.  These individuals blame CSI for their failures because they believe that CSI is a for-profit corporation, and therefore, must be out to screw you by making crazy hard tests that “nobody can pass”.  Seems to me plenty of people pass the CSC and other CSI related courses every year Sherlock.  The lack of personal accountability is appalling.

At some point in life, I hope that people can take accountability for their own actions.  There was a lady I was reading about who took each level of the CFA at least 2 times.  That’s double the amount most people who complete the program ever did.  Here response was, the test was hard, and I had a tough time understanding the material.  But I kept at it and now I feel more confident in my abilities.  That sort of persistence is a rare quality, but it serves a point.  It doesn’t matter if you “tried hard” or if you paid a lot of money.  That does not give you a free ticket into life.  It’s time to stop complaining and become accountable.  CSI is a nationally recognized provider of educational programs, and is highly regulated.  It is unlikely that some man in the back room is failing people so he can grease the wheel.  It is more encouraging when a percentage of people fail a certain level of exam, as it shows that the exam is not merely a show for regulatory purposes.  The primary reason the regulatory and licensing process exists is to prevent un-educated individuals from performing work they are not qualified to do.

So, one way or another, the only person you have to look at is yourself.  You need to take a look at what you did wrong, pull up your socks, stop feeling sorry for yourself and get back on that saddle.  It’s not a lot of fun, I understand, but at some point you have to take action and responsibility.  Nobody said life was easy, and in this field, if you give up every time something is hard, you wont be at it for very long.  Persistence, determination and will.  Let the rest accumulate over time.