I’m Officially Done the CSC

I just received my second exam results back, did much better on the second exam then the first one.  I have to say it was a sight of relief when I saw the “Complete” underneath the registration tab on my personal menu.  It’s just another thing complete, and it does feel good to have done.  I contacted CSC to see how long the certificate normally takes to ship out.  The estimated time was between 4 and 6 weeks, so I’m guessing around mid-April.  For those of you who may be ordering frames from CSI, you may be interested to know that they don’t ship with the diploma.  The CSI representative told me that the frames ship separately from the certificate, and the time frame for a frame to delivery is roughly 2 weeks.  They are charging around $70 for a $30 frame, not including shipping.

I am waiting until late June when I register for the Wealth Management Essentials (WME) course to order the updates CSC text.  There is a small story behind this.  I found out that CSC was finalizing a updated textbook to be released late January, early February.  These dates were way to late for me, so I studies off the online textbook instead, and decided to order the hard copy book when I signed up in later courses.  I like having reference materials in hard copy format, and the low cost of a book compared to printing it myself seems worthwhile.  I made sure to get the updated 2009 hard copy CPH materials, which I am currently going through.

Overall, I found the CSC to be an excellent introductory course into finance, that exposed me to a variety of different sections in the financial services industry.  While this was an advantage for those seeking general knowledge of the industries primary component, I also found this approach to be quite arbitrary, vague and narrow in scope.  The first volume of the book had essential components that will be required throughout your studies, and with the exception of chapter 12, were all extremely useful to me.  I did find that separating chapter 12 from 13 and 14 was perplexing, given that they both speak to the same specific component; financial statement analysis.  Also I found the second volumes chapters to be stretched out, as if they were trying to fill the information in to make it worthwhile.  The chapters on segregated funds and mutual funds could have easily been placed into a larger chapter with more streamlining of contents.  The same goes for hedge funds and other managed products.  I found a lot of this information was repetitive, or simply just taking up space.

Overall I did find the second exam easier than the first, but probably not in the way you think.  What did it for me was, by the time I had taken 1 CSC exam and read the first 12 chapters, I was way more acquainted with the CSC writing style and testing style, than I was the first go around.  So although the material was similar in difficulty throughout most of the key chapters, I think my technique improved causing me to believe the second exam was easier.  Overall, I think both exams are challenging and require a good degree of comprehension.

My advice for those enrolled or planning on enrolling in the Canadian Securities Course (CSC) is to focus on understanding the key concepts, and worry less about calculations and memorization of definitions.  The materials in the bonds and financial statement sections were pivotal to success in the second half of the course.  Furthermore, I felt economics for the time required of study, was far to undervalued on the exam and not worth considerable time.  Overall, if you commit to a study routine and exam content comprehension, you will have no trouble passing this exam.  Don’t confuse comprehension with the basic concept of “easy”, that is thrown around far to often in relation to this course.

Be diligent, prepared and focus on the material at hand and you will find that, although the exam is challenging, you can excel if you have prepared properly.  I highly advise against straight memorization or trying to “game” the exam.  This will just cost you time and money in the end.  I hope this blog can be of some use to people taking this exam in the future, as I have tried to pack as much content and information in here as I could in the short time I took this course.  I will now be moving over to the CPH blog (link in the sidebar) for two short weeks, at which point I will then move to a more permanent home on my CFA blog (link in sidebar).

It’s been fun,

– 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

Do I Really Need to Memorize ALL of The Formulas?

This question is present in one out of every 25 questions on the message board, and the answer is always the same: YES.  You can choose not to, and take the risks, but it is likely to produce unfavourable results.  Good news for those of you who hate math out there: in the two exams I have taken and other exams others have taken who I have talked to, formulas have played a very small role in the overall test.  In fact, there is a a possibility that you could pass the test without understanding any of the formulas.  I wouldn’t be to inclined to do that, but I could see it being possible.  In test one the formulas are fairly simple, although they do require a understanding of the theory behind them.  Test 2 however, the theory is easier to understand but the formulas are a little more complex.  There is a whole chapter dedicated to specific formulas for analyzing company performance.  Overall I think there is 30 or so formulas for test 2 alone.

The good news to those of you who are hitting your heads against the desk, is that you don’t need to remember all of them.  In the CSC FAQ for chapter 14, the CSI clearly states that you don’t need to memorize how to conduct the formulas off the balance sheet or earnings statements per se, however, you will need to know how these formulas are used, what they mean and when they can provide useful information.  For the tests, a lot of this information was already provided for you.  I was not asked to calculate P/E or the Sharpe Ratio, but I was given those numbers and asked a series of questions.  Be prepared to be able to recite what a P/E of 9.3 means or a Inventory Turnover Ration of 15 vs 12.  Don’t be intimidated, just focus on the task one step at a time.

Do I really need to memorize all of those formulas? The answer like every finance related term is: kind of maybe, but not really, to some extent yes but in the broader picture no.  So just know the formulas well, but don’t memorize them.  But know them, really well.  Don’t worry about it, just know it, but don’t study it hard. Short answer: Yes you need to memorize all of the formulas and no you don’t need to memorize all of the formulas.  If your scratching your head right now, that’s good.

– Steve

Wording on the Exam

I thought i’d just quickly mention a very important part about the securities exam 1 and 2 that totally caught me off guard. I know i’ve mentioned this briefly a couple times, but I wanted to dedicate a small post to it so that some of you may be better prepared for whats ahead.  As you read through the material you may find that you think most of it is common sense, or fairly easy to understand.  This is not an illusion, as the material is laid out in a very logical way.  As you progress through the book, concepts begin to evolve that are built on previous concepts.  Before you get to confident though it is important to know what CSI will be testing you on, or in better terms, how they will be testing what you are reading.

Unlike other exams, a large part of both CSC exams is about comprehension.  There is no straight definition questions, rather, all of them require you to apply the concepts in some way.  With the math problems, the creators of the exam have figured out the four most likely combination of equations so that, even though you may get the right number, you may not have the right answer.  Use of the phrases “not”, except” and other command words are italicized, but easy to miss.  Furthermore the wording of the questions are intentionally packed with definitions and numbers, some which are relevant, some which are not.  I was surprised to learn that almost a third of both exams was reliant on your ability to take tests, that is, to identify common test tricks.  I don’t know that I am really on-board with the whole idea of the “trick question“, but I definitely think its a good idea to add comprehension into as many questions as possible.  Be prepared for a wordy test, and try to gain as much comprehension of the material as possible.

– Steve

“Aren’t You Going a Tad Over-Board…..I Heard this Exam Was So Easy!!!”

Lets break down things into relative terms shall we.  Easy is a subjective term.  Easy for me may not be easy for you (or vice-verse). Your approach to this material will have to reflect your background.  If you have a finance degree, then I wouldn’t worry to much about this.  If you are taking this as an into to finance, I wouldn’t take this very lightly.  It seems in my initial research that people went out of their way to ridicule others who had a difficult time or who asked questions about the degree of difficulty with the CSC.  Let me clear up some points about my own personal views on the subject.  The exam is not a gimme exam.  Don’t expect a question like; “Define NAVPS”.  You wont get any of those.  You may get a question like “Assuming an investor purchased 500 units of a mutual fund at $15.24 with a back-end load. What would the investors net profit be if he sold 20% of his shares at a NAPVS of 16.45 with a back-load of 4% and a marginal tax rate of 26%?”  I made sure to draw the question out like CSI does, to give you a look at the style of question.  Of course, only some of the information in that question you need to know.  However in order to know what information you need to use, for this question, you would need to know about the Net-Asset-Per-Share formula and relevance to mutual funds, tax laws and marginal tax rates on unregistered accounts, and load charges.  Now, take that question and add 99 more and you have a CSC exam.

As I have said before, the style of the exam is what makes it challenging.  The writers have made sure to drill down on the content, and merge different chapters with each-other.  Don’t be fooled by people on message boards who claim to walk on water.  If you ran into some guy who said he studied 2 days and got 92% on the exam, I would be very skeptical.  This isn’t to say this isn’t possible, but the exam isn’t easy.  At both tests, out of a room of 30 – 35 people, only 4-6 people left before the time was up.

Before I started this test I took a different approach.  I don’t take things for granted, especially if I am taking advice from someone I have never met.  If someone on a message board says don’t worry it’s easy, I may take that into consideration.  But I will likely study like the exam was the hardest thing i’d ever have to do.  Why? Because the worst that can happen is that I learn something and get a high mark.  On the other hand if I decided that I was so smart I could just skim the material and ace it, and I failed the exam, i’ve just wasted time I wont get back.  Don’t waste your time, commit to the material and hammer out a solid study plan.

– Steve

Do High Marks Really Matter?

Some people on the forums have been asking about whether high marks matter in the CSC.  Let me present a couple of facts.  For those of you who have some post-secondary and have been interviewed for a job recently, how many of you have been asked for your marks.  Most employers don’t even verify your credentials.  Just a side-note, but don’t think you can get away with lying about the CSC.  When your firm goes to register you, your results will be checked.

In my opinion, marks can be a selling point to your employer. Being able to say you scored a 93% on the CSC exam is just another tool you have to sell yourself. The Question is, is this a requirement? Absolutely not. All the employer really cares about is that you have passed both exams.  I scored relatively high on my first test, and I am still awaiting my second test.  No matter what I get on my second test, I wont be advertising my marks unless I am asked.  My theory here is that, if I got a 85% on the exam and my boss assumes i’m a 90% guy, who am I to correct him.  That is, unless I am asked.  Of course it could go both ways, and he could think i’m a 60% guy and I get an 85%.  Really, the whole argument about marks is frankly, ridiculous.  The most prestigious financial certifications in the world do not release specific candidate marks, but rather place you in a general percentage category (i.e., >70).  So I think if you can pass a course, you are just as well suited for the job as the guy with the 85%.  Don’t let marks define you, but don’t let your low expectations of yourself, the exam or your desired results affect your ability to excel either.  This is a great course to learn from, so spend as much time as you can soaking up all the useful information in this text.  And don’t stress about the marks, above 60% and your laughing.

What are your thoughts on exam marks? Do you think higher marks gives you a better chance of landing a better job?

CSC Check Revisited

I know I have already written about the CSC check in a previous post but changing circumstances have encouraged me to revisit this topic.  My original thought on a additional question bank was that it was a waste of money, especially for the amount of time I would be spending on this course, relative to others.  After sitting through both exams, I realize that I was wrong.  I base this on the length of time it took me to complete the test.  What really made both tests difficult was the wording, and how they try to trick you with loops or double negatives.  The concepts I had down for the most part, but I spent a majority of my time separating the facts from the question so that I wouldn’t get caught.  I attribute this to not enough practice questions.  A good study regime is one where you learn the information, recite it and then apply it.  A review process doesn’t hurt either.

From the little I know about the CSC check, I would definitely purchase it then if I knew what I know now.  CSI provides you with a lot of resources at your disposal and its your job to pick the ones which will work for you best.  Doing questions isn’t a lot of fun, but if it works, and you have the money, I would definitely recommend it.  The thinking here is that, if you continue to practice those questions over and over again, when the exam comes you will have both the knowledge and the experience in writing those types of questions. The best thing you can do is finish the exam earlier then everyone else, which gives you more time to review answers you aren’t sure about. So if you are thinking about the CSC Check, I would recommend it.

That way you can apply the following four step process to maximum retention and ace the exam:

1. Read the material
2. Recite the material (online activities, post-tests, forums, FAQs, LOS Statements)
3. Apply the material (CSC check, consistent review)
4. Review the material (cue cards, review of notes, hammer down on difficult concepts)

This would be my approach if I was to take this course from the beginning. Should you get the CSC Check? The answer is, how well do you want to do on the exam.  Are you ok with a 60% – 70%? Then don’t worry about the CSC check.  Do you want to knock this test into next week? Get the CSC Check and ace this exam.

– Steve

Use of Cue-Card Software

I thought I would give a quick review of the wonderful cue card software program I have been using.  For those of you who have an iPhone or an iTouch, you can also use this program. The application is called gFlash+ and is a free download from the apps store.  It’s a pretty intuitive little application that allows you to create cue card sheets inside google documents and sync them with your itouch or iphone.  I thought this was pretty cool.

My process was pretty simple.  I took the definitions for each chapter and typed them up in individual documents inside google documents.  As I went through the chapter I added additional cards on more complicated things like lists, formulas and relationships.  After I was done I had access to an entire chapter of cue cards in a small device.

The primary advantages to this system are:

• Portability: The iPhone is much thinner then 12 chapters worth of cue cards
• Convenience: If you are out and about, you don’t need to remember to bring your cue cards.  They are on you at all times, ready to be used.
• Efficiency: Most people can type faster then they can write.  If you are using .pdf textbooks, the copy-paste functionality is even faster.
• It’s Smarter: The software picks out those questions that you got wrong and generates a seperate, narrowed down list of cards to review.  It also throws in a couple ones you got right for good measure.

Whatever system you decide to do will depend on your personal preference, time and learning style.  I will be using this same format for my CPH exam, but due to time constraints I will not be using it for the CFA exam.

The Wonderful World of Torrents…..

The use of torrents to get additional material to supplement your studying is a great idea if you wish to boost the chances of additional marks on the exam.  Nothing really can make up for the textbook and online resources CSC provides, but you can still get some quality material to further your understanding on a topic or group of topics.

If you have registered for the CSC check I wouldn’t worry about using external sources for drill down material, as the question bank does a great job of drilling down.  Keep in mind when you are supplementing knowledge with other items other then CSC approved materials, you may be going above and beyond what CSI requires of you. 

Keep in mind that, anything and everything included in the most recent updated version of the CSC text is testable on the exam. I have read question after question on fellow students asking if they have to memorize this formula, or this table.  The answer is quite simple, yes.  If it’s in the textbook, its fair game.  This may seem unfair, but if you look at it the other way CSI has made it quite clear that if its not in the textbook it is not testable.  SO broad concepts that are merely mentioned in a list such as swaps, do not need further elaboration using external materials.  The only time you will need external materials is if you need to elaborate on something inside the book and you can’t understand CSC’s methodology.

Most people who complete this exam study JUST the exam books and pass.  The use of external material, the CSC check and even the online resourses are not necessarily required, but they do help.

The True Secret to Passing Any Exam in a Short Period of Time….