100+ Free GISI Securities Course Professional Level Practice Questions

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2026 Statistics

Key Facts: GISI Securities Course Professional Level Exam

70%

Passing Score

GISI Official

100

Exam Questions

Multiple Choice

120 mins

Exam Duration

CBT Format

GHS 1,300

Exam Fee

Resitters Only

Act 929

Securities Act

Ghana Parliament

60-80 hrs

Recommended Study

Prep Guide

The GISI Securities Course Professional Level (Level 400) is the final stage of the professional securities pathway in Ghana. It requires a 70% passing score. The examination fee is GHS 1,300 (resitters pay exam fee only). It qualifies candidates for advanced roles in securities trading, investment analysis, wealth management, corporate finance, and risk management under the Securities Industry Act, 2016 (Act 929).

Sample GISI Securities Course Professional Level Practice Questions

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

1Under the Ghana Stock Exchange (GSE) automated trading rules, what is the default settlement cycle for equities traded on the main board?

A.T+1 (Transaction day plus one business day)

B.T+2 (Transaction day plus two business days)

C.T+3 (Transaction day plus three business days)

D.T+5 (Transaction day plus five business days)

Explanation: Equities traded on the Ghana Stock Exchange (GSE) settle on a T+3 cycle (Transaction day plus three business days) through the Central Securities Depository (CSD) Ghana. This aligns with international standards for developing markets, although some fixed-income securities settle on shorter cycles.

2Which of the following describes the function of a 'Market Maker' on the Ghana Stock Exchange (GSE)?

A.An investor who purchases newly issued shares directly from the issuing corporation.

B.A licensed dealing member (LDM) obligated to provide continuous two-way quotes (buy and sell) for specified securities to maintain market liquidity.

C.A regulatory official who halts trading when extreme price volatility is detected.

D.A clearing agent responsible for matching trading instructions at the Central Securities Depository.

Explanation: Market Makers are Licensed Dealing Members (LDMs) authorized by the GSE and approved by the SEC to provide liquidity by continuously quoting bid and ask prices for designated securities, facilitating immediate execution for buyers and sellers.

3On the Ghana Stock Exchange, what is the maximum daily price change limit (price band) permitted for listed equities without special regulatory approval?

A.+/- 5%

B.+/- 10%

C.+/- 15%

D.+/- 20%

Explanation: The Ghana Stock Exchange (GSE) operates a daily price limit band of +/- 10% of the previous day's closing price for listed equities priced at GH¢0.10 or above. This price movement rule (Rule 30) is designed to control excess volatility while allowing fair price discovery. Negotiated trades are exempt from this limit.

4In the context of clearing and settlement in Ghana, what is the role of the Central Securities Depository (CSD)?

A.To act as the primary regulator issuing licenses to broker-dealers and investment advisers.

B.To provide an automated matching engine for buy and sell orders placed on the exchange floor.

C.To hold securities in dematerialized (electronic) form and facilitate transfer of ownership through book-entry delivery against payment.

D.To underwrite corporate debt and equity public offerings before listing on the GSE.

Explanation: The CSD Ghana holds securities in electronic (dematerialized) format and performs the clearing and settlement functions. It enables electronic book-entry transfer of ownership of securities, ensuring Delivery Versus Payment (DVP) to eliminate principal risk.

5Which of the following corporate actions on the GSE results in an increase in the number of outstanding shares without altering the company's total equity or market capitalization?

A.A cash dividend distribution

B.A share buyback program

C.A share split

D.A private placement of new equity

Explanation: A share split increases the number of shares outstanding while proportionally reducing the nominal value per share. Total equity, assets, liabilities, and market capitalization remain unchanged at the moment of the split.

6What is a 'Rights Issue' as implemented by listed companies on the Ghana Stock Exchange?

A.The distribution of non-voting shares to existing shareholders as a bonus.

B.An offer to existing shareholders to purchase additional new shares in proportion to their existing holdings, usually at a discount to the market price.

C.The mandatory conversion of corporate debt into equity shares during restructuring.

D.An allocation of shares directly to employees under a corporate compensation program.

Explanation: A Rights Issue is a preemptive offering allowing existing shareholders to purchase new shares at a discount to the current market price, in proportion to their existing shareholdings. This allows them to maintain their percentage ownership and avoid dilution.

7How does the 'Delivery versus Payment' (DVP) mechanism protect market participants in the clearing and settlement process?

A.It guarantees that a stock will always be bought at the lowest price of the day.

B.It ensures that the delivery of securities occurs if and only if the corresponding payment is received and verified simultaneously.

C.It provides insurance cover for investors against broker insolvency up to a specific limit.

D.It automatically cancels any orders that are not filled within 15 minutes of execution.

Explanation: DVP is a settlement method that links the transfer of securities to the transfer of funds. It ensures that securities are only delivered if payment is made, which eliminates principal risk (the risk that one party delivers but does not receive the counter-value).

8An investor places a 'Stop-Limit' order to sell 5,000 shares of a GSE-listed company with a stop price of GHS 4.50 and a limit price of GHS 4.30. If the stock price drops to GHS 4.45, what is the status of this order?

A.The order is immediately executed as a market order at GHS 4.45.

B.The order is activated as a limit order to sell at GHS 4.30 or better.

C.The order remains completely inactive because the stop price has not been reached.

D.The order is cancelled automatically by the exchange matching system.

Explanation: When the stock price touches or falls through the stop price of GHS 4.50, the stop-limit order is triggered. Once triggered, it becomes a standard limit order to sell at GHS 4.30 or better. Since the price is GHS 4.45, which is above the limit price of GHS 4.30, the order is active and eligible for execution.

9On the Ghana Stock Exchange, block trades are transactions involving a large volume of shares. Which of the following is true regarding block trade rules?

A.They are executed anonymously on the public order book without disclosure.

B.They are negotiated privately (off-book) but must be reported to the exchange and registered according to GSE rules.

C.They are exempt from all SEC transaction fees and regulatory oversight.

D.They can only be conducted during pre-market trading hours between 8:00 AM and 9:00 AM.

Explanation: Block trades on the GSE are typically negotiated privately off-book between institutional investors or Licensed Dealing Members (LDMs) because executing them in the order book would cause excessive price disruption. However, they must be reported to the GSE within a specified window for registration and transparent public disclosure.

10Under the rules of the Central Securities Depository (CSD) in Ghana, what is a 'pledging' transaction?

A.A guarantee by a broker-dealer to purchase any undersubscribed shares in a new IPO.

B.The process of locking securities as collateral in favor of a lender or creditor.

C.An investor's formal commitment to participate in a corporate rights offering.

D.The temporary lending of securities to another broker-dealer for short-selling purposes.

Explanation: Pledging is an operation where dematerialized securities held in a CSD account are locked/pledged in favor of a creditor (typically a commercial bank) as collateral for a loan. The pledged securities cannot be traded or transferred until the pledgee releases them.

About the GISI Securities Course Professional Level Exam

Professional-level qualification focusing on advanced securities trading, portfolio theory, risk management, corporate finance, and strategic regulatory compliance in Ghana.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

GHS 1,300 (Ghana Investment and Securities Institute)

GISI Securities Course Professional Level Exam Content Outline

20%

Securities Trading and Market Operations

GSE trading engine, order types, CSD book-entry registry, and clearing & T+3 settlement rules.

20%

Investment Analysis and Valuation

Equity valuation (DDM, DCF, FCF), fixed income valuation (YTM, duration, convexity), and DuPont financial analysis.

20%

Portfolio Management and Theory

Modern Portfolio Theory, Efficient Frontier, CAPM cost of equity, asset allocation, and performance metrics (Sharpe, Treynor, Alpha).

20%

Corporate Finance and Governance

Capital budgeting (NPV/IRR), capital structure (MM/Trade-off theories), WACC, mergers & acquisitions, and corporate governance codes.

10%

Risk Management and Derivatives

Financial risk types, Value at Risk (VaR), portfolio immunization, stress testing, and hedging with forwards/swaps/options.

10%

Ghana Regulatory & Legal Framework

Securities Industry Act 2016 (Act 929), Companies Act 2019 (Act 992), and AML/CFT compliance laws.

How to Pass the GISI Securities Course Professional Level Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam fee: GHS 1,300

Keys to Passing

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

GISI Securities Course Professional Level Study Tips from Top Performers

1Dedicate at least 60-80 hours of study over a 4-8 week period to master the extensive quantitative content.

2Review the mathematical formulas for Gordon Growth Model, CAPM, DuPont ROE decomposition, and portfolio performance metrics.

3Thoroughly study the Securities Industry Act 2016 (Act 929) and the Companies Act 2019 (Act 992) as local regulatory compliance is heavily tested.

4Practice with realistic exam-style questions to build speed and accuracy under the 2-hour time constraint.

Frequently Asked Questions

What is the passing score for the GISI Professional exam?

The passing score for the GISI Securities Course Professional Level exam is 70%. Candidates must pass this final stage of the pathway to qualify for professional licenses from the Securities and Exchange Commission (SEC) Ghana.

How much does the GISI Professional exam cost?

The examination fee alone for the GISI Professional Level is GHS 1,300 (for resitters or exam-only candidates). The complete pathway package including tuition, study materials, and the exam costs GHS 4,488.

What topics are covered on the GISI Professional Level?

The exam covers advanced concepts in six key areas: Securities Trading (20%), Investment Analysis (20%), Portfolio Management (20%), Corporate Finance (20%), Risk Management (10%), and the Ghana Regulatory Framework (10%).

What is the format and duration of the GISI Professional exam?

The exam is computer-based (CBT) and consists of 100 multiple-choice questions. Candidates are allocated 2 hours (120 minutes) to complete the test.