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100+ Free CISI CMP Securities Practice Questions

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2026 Statistics

Key Facts: CISI CMP Securities Exam

100 questions

The CISI Capital Markets Securities exam has 100 multiple-choice questions.

CISI Capital Markets Programme

2 hours

The exam lasts 2 hours (120 minutes).

CISI Capital Markets Programme

70%

The pass mark for the Securities unit is 70%.

CISI Capital Markets Programme

Up to 10%

A sitting may include up to 10% additional unscored trial questions.

CISI Capital Markets Programme

~154 hours

The CISI recommends a minimum of about 154 study hours for the Securities unit.

CISI Capital Markets Programme

183 hours

Total qualification time across the regulatory and technical units is about 183 hours.

CISI Capital Markets Programme

Computer-based

The exam is taken online via remote invigilation or at a global test centre.

CISI Capital Markets Programme

2 technical units

Candidates choose either the Securities or the Derivatives technical unit.

CISI Capital Markets Programme

The CISI Capital Markets Programme - Securities exam is a 2-hour, computer-based multiple-choice test of 100 questions with a 70% pass mark. It is the cash-securities technical unit of the Capital Markets Programme, sat alongside a regulatory unit, and covers the financial services industry, asset classes, primary and secondary markets, corporate actions, clearing, settlement, custody, accounting analysis and investment management. The CISI recommends about 154 hours of study and requires the current workbook to be purchased when booking. Sittings may include up to 10% unscored trial questions, and there is no negative marking. This 100-question bank provides original practice modelled on the live Securities syllabus and kept distinct from the Derivatives unit.

Sample CISI CMP Securities Practice Questions

Try these sample questions to test your CISI CMP Securities exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary economic function of a capital market?
A.To set interest rates for central banks
B.To channel funds from savers to organisations that need long-term capital
C.To guarantee a profit on every investment
D.To replace the role of commercial banks in lending
Explanation: Capital markets bring together those with surplus funds (investors) and those needing long-term finance (governments and companies), enabling efficient allocation of capital. This intermediation function underpins all securities markets.
2Which of the following best describes the difference between the money market and the capital market?
A.The money market trades only shares; the capital market trades only bonds
B.The money market deals in short-term instruments (typically under one year); the capital market deals in longer-term securities
C.The money market is unregulated; the capital market is regulated
D.The money market is open only to retail investors
Explanation: The money market handles short-dated instruments such as Treasury bills, commercial paper and certificates of deposit, usually maturing within a year. The capital market handles longer-term securities such as equities and longer-dated bonds.
3In securities markets, what is a 'sell-side' firm?
A.A firm that only sells its own shares
B.A firm such as an investment bank or broker that creates, promotes and sells securities and provides execution services
C.A pension fund that buys assets for the long term
D.A regulator that supervises market conduct
Explanation: Sell-side firms (investment banks, broker-dealers) underwrite and distribute new issues, make markets and provide research and execution to clients. The buy side (funds, pensions) purchases those securities for investment.
4Which institution typically acts as a custodian in the securities industry?
A.A firm that holds and safeguards clients' securities and processes related events
B.A firm that sets the price of new share issues
C.A central bank that issues currency
D.A retail broker that gives investment advice
Explanation: A custodian safekeeps clients' assets, settles trades on their behalf, collects income and processes corporate actions. Custody is a core post-trade service distinct from advice or pricing.
5What distinguishes a 'principal' trade from an 'agency' trade?
A.A principal trade is always larger than an agency trade
B.In a principal trade the firm trades from its own book and takes on risk; in an agency trade the firm acts on behalf of a client without taking a position
C.A principal trade involves only bonds; an agency trade involves only equities
D.There is no difference in modern markets
Explanation: Acting as principal, a firm buys or sells using its own capital and bears the market risk. Acting as agent, it arranges a trade for the client and earns commission without taking the position onto its own book.
6An investor holds ordinary shares in a company. Which of the following rights do ordinary shareholders normally have?
A.A guaranteed fixed dividend each year
B.Priority over all creditors if the company is wound up
C.The right to vote at general meetings and to receive dividends if declared
D.A fixed redemption date when the company must repay capital
Explanation: Ordinary shareholders are owners of the company: they normally vote at general meetings and receive dividends when declared. Dividends are not guaranteed, and ordinary shareholders rank last on a winding up.
7What is a key feature of preference shares compared with ordinary shares?
A.They usually carry a fixed dividend and rank ahead of ordinary shares for dividends and on a winding up
B.They always carry full voting rights at all meetings
C.They are a form of debt that must be repaid at a fixed date
D.They never pay any income
Explanation: Preference shares typically pay a fixed dividend and rank ahead of ordinary shares for dividend payments and on a winding up, though usually behind creditors. They generally carry limited or no voting rights.
8A bond has a coupon of 5% and a nominal (face) value of GBP 1,000. How much annual interest does the holder receive?
A.GBP 5
B.GBP 50
C.GBP 500
D.It depends on the market price
Explanation: The coupon is paid on the nominal value, so 5% of GBP 1,000 is GBP 50 per year. The coupon payment is fixed by the nominal value and does not change with the bond's market price.
9If a bond's market price rises above its nominal value while its coupon stays the same, what happens to its running (current) yield?
A.It rises
B.It falls
C.It stays exactly the same
D.It becomes negative
Explanation: Running yield equals the annual coupon divided by the market price. As the price rises, the same coupon represents a smaller percentage of the price, so the yield falls. Price and yield move inversely.
10Which statement about government bonds (gilts) versus corporate bonds is generally correct?
A.Corporate bonds always pay a lower yield than government bonds
B.Government bonds of a stable sovereign usually carry lower credit risk and therefore a lower yield than comparable corporate bonds
C.Government bonds never pay a coupon
D.Corporate bonds cannot be traded in the secondary market
Explanation: Bonds issued by a financially stable government are normally seen as lower credit risk than corporate bonds, so investors accept a lower yield. Corporates pay a higher yield (a credit spread) to compensate for greater default risk.

About the CISI CMP Securities Exam

The Securities unit is the cash-securities technical pathway of the CISI Capital Markets Programme. It gives those advising on or dealing in securities the knowledge needed for their roles, covering the financial services industry and the main asset classes, the structure of primary and secondary markets, corporate actions, the post-trade lifecycle of clearing, settlement and custody, basic accounting analysis and investment management. Candidates choose between the Securities and Derivatives technical units; this unit focuses on cash instruments such as equities, bonds and collective investments rather than derivative products. It is examined by a 100-question, 2-hour computer-based multiple-choice exam with a 70% pass mark.

Assessment

100 multiple-choice questions, each with four options and one correct answer. The sitting may include up to 10% additional trial questions that do not count toward your result. There is no negative marking.

Time Limit

2 hours (120 minutes).

Passing Score

The pass mark is 70%.

Exam Fee

A single exam fee per unit (approximately GBP 230 for Securities) that includes the compulsory current CISI workbook; the exact amount is shown on the CISI price list when booking. (Chartered Institute for Securities & Investment (CISI))

CISI CMP Securities Exam Content Outline

22%

Financial Services Industry & Asset Classes

The participants and purpose of capital markets, the difference between money and capital markets, and the main asset classes: equities (ordinary and preference shares), debt instruments (government and corporate bonds), money-market instruments, and pooled/collective investments. Covers key features, risk and return, and how each instrument is used.

34%

Markets, Primary & Secondary Markets

Market structure including exchanges, MTFs and OTC trading; primary issuance such as IPOs, placings, rights issues and bond issuance with the roles of underwriters and sponsors; and secondary-market trading covering quote-driven and order-driven systems, order types, market makers, and best execution.

12%

Corporate Actions

Mandatory events (dividends, bonus/scrip issues, stock splits), voluntary events (rights issues, tender offers, takeovers) and mandatory-with-options events. Covers ex-dividend and record dates, entitlements, elections, and the operational impact on holdings and settlement.

16%

Clearing, Settlement & Custody

The post-trade lifecycle: trade confirmation and matching, clearing and the role of central counterparties, netting, settlement cycles such as T+1 and T+2, central securities depositories, delivery versus payment, settlement failure and risk, and the custody and safekeeping of assets.

16%

Accounting Analysis & Investment Management

Reading the balance sheet, income statement and cash-flow statement, and key ratios used to assess companies; plus investment management approaches including active and passive strategies, benchmarks, diversification, performance measurement and the roles of the buy side and sell side.

How to Pass the CISI CMP Securities Exam

What You Need to Know

  • Passing score: The pass mark is 70%.
  • Assessment: 100 multiple-choice questions, each with four options and one correct answer. The sitting may include up to 10% additional trial questions that do not count toward your result. There is no negative marking.
  • Time limit: 2 hours (120 minutes).
  • Exam fee: A single exam fee per unit (approximately GBP 230 for Securities) that includes the compulsory current CISI workbook; the exact amount is shown on the CISI price list when booking.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CISI CMP Securities Study Tips from Top Performers

1Build a clear mental map of the trade lifecycle from order to settlement; clearing, settlement and custody together carry significant weight and the steps are easy to confuse under time pressure.
2Learn the standard settlement cycles (for example T+2 for most European equities and T+1 for US equities since 2024) and what delivery versus payment protects against.
3Distinguish mandatory, voluntary and mandatory-with-options corporate actions, and be able to work through ex-dividend, record and payment dates from a worked example.
4Know the features that separate ordinary shares, preference shares, government bonds and corporate bonds, including ranking on insolvency and income type.
5Practise the difference between quote-driven (market-maker) and order-driven (order-book) markets and when each is used, as questions often test the mechanics.
6Pace yourself at roughly one minute per question so you have time to review flagged items; with no negative marking, never leave a question blank.

Frequently Asked Questions

How many questions are on the CISI Capital Markets Securities exam and how long is it?

The exam has 100 multiple-choice questions and lasts 2 hours (120 minutes). Your sitting may also contain up to 10% additional trial questions that are not counted toward your result.

What is the pass mark for the CISI Securities unit?

The pass mark is 70%. There is no negative marking, so it is always worth attempting every question even if you are unsure.

How is the Securities unit different from the Derivatives unit?

Both are technical units of the Capital Markets Programme, and you choose one. The Securities unit covers cash instruments such as equities, bonds and collective investments and their markets, clearing and settlement, while the Derivatives unit covers futures, options, swaps and their markets and margining.

How much study time does the CISI recommend?

The CISI recommends a minimum of about 154 hours of study for the Securities unit. Total qualification time across the regulatory and technical units is around 183 hours.

How is the exam delivered and what does it cost?

It is a computer-based exam taken online via remote invigilation or at a global test centre. A single fee per unit (around GBP 230 for Securities) includes the compulsory current CISI workbook; the exact price is shown on the CISI price list when booking.

Are these official CISI questions?

No. These are original OpenExamPrep practice questions modelled on the published Securities syllabus areas. The CISI provides official workbooks and learning materials separately, which are required when booking the exam.