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Exam Review

Key Facts: GISI Foundation Exam

70%

Passing Score

GISI Guidelines

GH₵ 500

Examination Fee

GISI 2026 Fees

GH₵ 2,873

Full Course Cost

Registration & Tuition

100

Practice Questions

Exam Prep

Course Chapters

GISI Syllabus

3-tier

Pension System

NPRA Act 766

The GISI Securities Course Foundation Level (Level 100) is the primary gateway to a capital markets career in Ghana. With a passing score of 70%, this CBT exam tests candidates on investment ethics, money markets, Securities Industry Act (Act 929), pensions (Act 766), and financial statements. A university degree is required to enroll.

Sample GISI Foundation Practice Questions

Try these sample questions to review concepts for the GISI Foundation exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes the difference between ethics and law in the Ghanaian securities market?

A.Law dictates what is legal, whereas ethics outlines what is morally right and professional, often setting a higher standard than the minimum required by law.

B.Law and ethics are identical, meaning that any action that is legal is also ethical.

C.Ethics is enforced by the courts with criminal penalties, whereas law is only monitored by SROs.

D.Ethics only applies to retail clients, whereas securities laws apply exclusively to institutional players.

Explanation: Laws are the statutory rules enacted by the government (such as Act 929) that dictate legal boundaries, carrying penalties for violations. Ethics goes beyond legal compliance, representing a set of moral principles and professional standards that guide behavior. A conduct can be legal but still unethical (e.g., recommending a high-commission product that is barely suitable when a better, cheaper one is available).

2An investment advisor at a Ghanaian brokerage firm owns shares in a local agricultural company and intends to recommend these shares to retail clients. Under the GISI Code of Conduct, what is the advisor's immediate obligation?

A.Sell all agricultural shares immediately before making the recommendation.

B.Disclose the personal shareholding clearly to the clients before they make an investment decision.

C.Recommend the shares without disclosure, provided they believe the recommendation is suitable.

D.Transfer the shares to a family member to avoid a conflict of interest.

Explanation: Conflicts of interest must be disclosed to clients. By owning shares in the recommended company, the advisor has a material interest that could compromise their objectivity. Under the GISI Code of Conduct, disclosing this relationship allows the client to make an informed decision.

3Which of the following actions constitutes 'painting the tape' in the context of market manipulation?

A.Buying and selling securities among colluding parties to create a false appearance of high trading volume and activity.

B.Publishing a false research report that understates a company's earnings to buy the stock at a lower price.

C.Trading on non-public material information obtained from a corporate insider.

D.Failing to execute a customer's order at the best available price on the exchange.

Explanation: 'Painting the tape' is a form of market manipulation where market participants buy and sell securities among themselves to create the illusion of active trading. This misleads other investors into thinking there is genuine interest, artificially driving up prices.

4What is the primary objective of 'suitability' rules in the GISI Code of Conduct?

A.To ensure that investment recommendations align with the client's financial situation, investment objectives, and risk tolerance.

B.To guarantee that the client makes a profit on every recommended security transaction.

C.To ensure that broker-dealers only recommend government-backed securities to retail clients.

D.To maximize the commission revenues generated by the licensed dealing member (LDM).

Explanation: Suitability requires that before an advisor recommends a transaction, they must gather information about the client's financial status, goals, time horizon, and risk appetite to ensure the product is appropriate. It prevents the mismatch of high-risk products with low-risk clients.

5Which of the following scenarios describes the ethical violation known as 'churning'?

A.An advisor executes excessive trades in a client's discretionary account primarily to generate commission income for the firm.

B.An advisor delays the execution of a client's sell order to allow their own account to sell first.

C.A broker-dealer spreads negative rumors about a competitor firm to win over their clients.

D.An issuer fails to disclose a significant drop in quarterly profits before launching an IPO.

Explanation: Churning is excessive trading in a client's account over which the advisor has discretionary control, driven by the desire to earn commissions rather than the client's investment objectives. It is a breach of fiduciary duty.

6Under what circumstance may a licensed representative on the Ghana Stock Exchange disclose client trade information to a third party?

A.When requested formally by the Securities and Exchange Commission (SEC) of Ghana for regulatory investigations.

B.When a close colleague at another brokerage firm asks for the information to verify market trends.

C.When the client's family member requests it verbally to assess the client's assets.

D.When the broker-dealer wants to publicize a successful trade as part of a marketing campaign.

Explanation: Client confidentiality is fundamental. Licensed representatives must protect client details unless required by law or a regulatory body (such as the SEC of Ghana under Act 929) or when the client has given explicit written consent.

7What does the ethical principle of 'fair dealing' require of investment professionals in Ghana?

A.Treating all clients fairly when disseminating investment recommendations or taking investment action, ensuring no client is favored over another.

B.Charging the exact same flat-rate commission fee to every client, regardless of trade size.

C.Ensuring that all clients receive identical investment returns on their portfolios.

D.Guaranteeing that all clients have access to the exact same IPO allocation, regardless of order timing.

Explanation: Fair dealing requires that investment professionals treat all clients equitably. For example, when changing an investment recommendation, an advisor must communicate the change to all clients simultaneously rather than giving preferred institutional clients a head start.

8Which of the following is an example of 'insider trading' under the Ghanaian Securities Industry Act, 2016 (Act 929)?

A.A corporate director buys shares of their own company after an unannounced, highly profitable merger agreement is finalized but before it is public.

B.A retail investor buys shares based on a technical chart pattern showing strong upward momentum.

C.A broker-dealer executes a large block trade of government bonds for an institutional client.

D.An analyst publishes a buy rating based on publicly available financial statements of a listed bank.

Explanation: Insider trading involves trading in securities of a company by individuals who possess material, non-public information about that company, giving them an unfair advantage. Act 929 strictly prohibits trading, tipping, or recommending based on such information.

9Which of the following primary characteristics distinguishes 'saving' from 'investing'?

A.Saving focuses on capital preservation and short-term liquidity with minimal risk, while investing aims for long-term capital growth by accepting higher risk.

B.Saving is exclusively done in foreign currency, whereas investing is only done in local currency.

C.Investing guarantees high returns, whereas saving is legally bound to lose value over time.

D.Saving is regulated by the SEC, while investing is regulated solely by the Bank of Ghana.

Explanation: Saving involves setting aside money in highly safe, liquid accounts (like bank savings accounts or short-term deposits) with the primary goal of preservation. Investing involves putting capital into assets (like stocks, bonds, or real estate) with the goal of achieving returns that outperform inflation, which introduces risk of capital loss.

10A Ghanaian investor deposits GHS 10,000 into a fixed deposit account earning a 12% annual simple interest rate. How much total interest will the investor earn at the end of 3 years?

A.GHS 3,600

B.GHS 1,200

C.GHS 4,049

D.GHS 3,000

Explanation: Simple interest is calculated as Interest = Principal * Rate * Time. Here, GHS 10,000 * 0.12 * 3 = GHS 3,600. Interest is calculated only on the initial principal each year.

About the GISI Foundation Exam

The entry-level examination for securities and investment professionals in Ghana, covering basic financial markets, intro to securities, bonds, regulatory frameworks in Ghana, and roles of the SEC and GSE.

Exam sponsor: Ghana Investment and Securities Institute (GISI). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

2 hours

Passing Score

70%

Exam / Certification Fees

GH₵ 500

Exam sponsor website

Reported exam pass rate: N/A. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

35%

Securities, Markets & Capital Raising

Savings, investments, debt/equity characteristics, primary/secondary markets, and CSD operations.

25%

Ethics, Governance & Personal Finance

Ethics in investments, corporate governance, shareholder rights, and financial planning.

20%

Ghanaian Regulations, Pensions & Taxation

Securities Industry Act, roles of SEC Ghana & GSE, three-tier pension system, and local taxation.

20%

Economics & Financial Reporting

GDP, inflation indicators, and IFRS financial statement analysis.

Preparing for the GISI Foundation Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam / certification fees: GH₵ 500 Official sources

Using Our Practice Resources

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
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GISI Foundation: Suggested Study Strategy

1Focus heavily on the Securities Industry Act 2016 (Act 929) and the roles of SEC and GSE - these are highly tested.

2Understand the Ghanaian three-tier pension system (Act 766) and the specific functions of SSNIT and NPRA.

3Practice calculating basic financial ratios (current ratio, quick ratio, return on equity) and simple/compound interest.

4Review the GISI ethical code of conduct, paying close attention to insider trading and market manipulation definitions.

Frequently Asked Questions

What is the passing score for the GISI Foundation Level exam?

The passing score for the GISI Securities Course Foundation Level exam is 70%. It is a computer-based test (CBT) and candidates must pass it sequentially to progress to the Intermediate Level.

What are the fees for the GISI Foundation Level?

The examination fee alone is GH₵ 500. The full package, which includes tuition, registration fee (GH₵ 400), and study resources, is GH₵ 2,873.00.

What are the entry prerequisites for the GISI Securities Course?

Applicants must hold at least a first degree in any discipline from a recognized university to be eligible to register for the GISI Professional Pathway.