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ISE Exam Study Guide

Your complete 10-week learning path to pass the Institutional Securities Exam. Master CAPM, portfolio theory, institutional client relationships, and all 7 elements.

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ISE Exam at a Glance

100

Questions

Multiple Choice

3 Hours

Duration

Computer-Based

Set by CIRO

Passing Score

Per Sitting

8-10 Weeks

Study Time

Recommended

7 Topics

Elements

Institutional Focus

31%

Largest Section

Securities Analysis

ISE Exam Element Weightings

31%

~31 questions

Securities Analysis & Investment Theory

16%

~16 questions

Institutional Client Relationships

13%

~13 questions

Equities

12%

~12 questions

Fixed Income

12%

~12 questions

Execution & Market Integrity

~8 questions

Conflicts & Standards

~8 questions

Managed Products

Focus on Element 5 - it accounts for nearly one-third of the exam

Structured Learning Path

Follow this 11-phase study plan to systematically master all ISE exam content

Phase 1: Getting Started

Understand the ISE exam basics and institutional marketplace • Week 1

ISE Exam Overview: Complete Guide

Exam structure, element weightings, and study strategy

What is the CIRO Exam? Beginner's Guide

Understanding CIRO exams and career paths

RSE vs ISE: Which Exam Should You Take?

Compare retail vs institutional career paths

Phase 2: Element 1 - Institutional Client Relationships (16%)

Master buy-side vs sell-side dynamics and institutional services • Week 2

Managing Institutional Client Relationships

Buy-side, sell-side, trading desks, prime brokerage

Key Topics Covered:

Buy-Side vs. Sell-Side ecosystemPension Funds and Liability-Driven Investing (LDI)Hedge Funds and Alpha generationTrading Desks: Agency, Principal, Prop, Market MakersPrime Brokerage servicesSecurities Lending mechanics

Phase 3: Institutional Onboarding & Compliance

Learn KYC for institutions, AML requirements, and information barriers • Week 2-3

Institutional KYC, AML & Onboarding

Permitted Clients, DVP, UBO, Chinese Walls

Key Topics Covered:

Institutional Client and Permitted Client definitionsDVP (Delivery vs. Payment) settlementUltimate Beneficial Owner (UBO) identificationSuitability Exemption and KYP requirementsAML: Placement, Layering, Integration stagesInformation Barriers (Chinese Walls)Grey List and Restricted List

Phase 4: Element 2 - Conflicts & Professional Conduct (8%)

Ethics, CFR framework, and prohibited practices • Week 3

Conflicts of Interest & Professional Conduct

Rule 1400, CFR framework, front running, churning

Key Topics Covered:

Rule 1400: The Fundamental DutyCFR Framework: Identify → Address → DiscloseFront Running and TailgatingChurning and BucketingPersonal Financial Dealings prohibitionClient Priority Rule

Phase 5: Element 3 - Fixed Income (12%)

OTC bond market, yields, duration, and institutional strategies • Week 3-4

Fixed Income for Institutional Markets

YTM, duration, convexity, credit spreads

Key Topics Covered:

OTC Dealer Market structureInter-Dealer Brokers (IDBs)YTM vs. Current Yield calculationsModified Duration and ConvexityClean Price vs. Dirty PriceCredit Spreads and Yield CurveImmunization strategy

Phase 6: Element 4 - Equities (13%)

Corporate structures, prospectus requirements, and exempt market • Week 4

Equities & Corporate Finance

Prospectus, exempt market, dual-class shares

Key Topics Covered:

Corporate structures and limited liabilityNI 41-101 Prospectus requirementsPreliminary Prospectus (Red Herring)Exempt Market (NI 45-106)Accredited Investor exemptionPrimary vs. Secondary distributionsDual-Class Shares and Coattail provisionsNVCC Bail-In securities

Phase 7: Element 5 Part 1 - Securities Valuation (31%)

DCF, DDM, financial statement analysis, and valuation ratios • Week 5-6

Securities Valuation: DCF, DDM & Ratios

Intrinsic value, P/E, ROE, financial analysis

Key Topics Covered:

Intrinsic Value conceptDiscounted Cash Flow (DCF) modelDividend Discount Model (DDM): P = D₁/(k-g)Top-Down vs. Bottom-Up analysisGrowth vs. Value investing stylesLiquidity Ratios: Current, QuickProfitability: ROE, EPS, Payout RatioValuation: P/E, Price-to-Book

Phase 8: Element 5 Part 2 - Portfolio Theory (31%)

CAPM, MPT, Alpha, Beta, Sharpe Ratio, and risk management • Week 6-7

Portfolio Theory: CAPM, MPT & Risk Metrics

Alpha, Beta, Sharpe, Efficient Frontier

Key Topics Covered:

Modern Portfolio Theory (MPT)Efficient FrontierCAPM Formula: E(R) = Rf + β[Rm - Rf]Alpha (excess return) and Beta (systematic risk)Standard Deviation (total risk)Sharpe Ratio and Treynor RatioSystematic vs. Unsystematic riskSAA vs. TAA allocationEfficient Market Hypothesis (EMH)

Phase 9: Element 6 - Managed & Alternative Products (8%)

ETFs, derivatives, private equity, and cryptocurrency • Week 7-8

Managed Products, ETFs & Alternatives

Options, futures, PE, ETF mechanics, crypto

Key Topics Covered:

REITs and Income TrustsCall and Put optionsFutures vs. ForwardsClearinghouse and counterparty riskETF Creation/Redemption (In-Kind)Leveraged ETF volatility decayPrivate Equity and LBOsCryptocurrency and custody risk

Phase 10: Element 7 - Execution & Market Integrity (12%)

Best execution, order types, dark pools, and trading mechanics • Week 8

Execution, Market Integrity & Trading

UMIR, dark pools, algorithmic trading, T+1

Key Topics Covered:

UMIR (Universal Market Integrity Rules)Best Execution obligationClient Priority RuleOrder Types: Limit, Market, Stop, Iceberg, VWAPLit Markets vs. Dark PoolsAlgorithmic and High-Frequency TradingT+1 Settlement rulesWash Trading and Marking the Close

Phase 11: Final Review & Practice

Mock exams, formulas review, and exam preparation • Week 9-10

Free CIRO Practice Questions

Test your knowledge before exam day

Key Topics Covered:

CAPM formula memorizationKey ratios: P/E, ROE, Current, QuickDuration and yield calculationsAlpha, Beta, Sharpe definitionsSettlement rules and order typesProhibited practices identification

ISE

INSTITUTIONAL SECURITIES EXAM

Choose Your Study Pathway

Select the pathway that matches your background — both lead to full ISE exam readiness.

Pathway 1

Build Your Foundation

For fresh candidates with limited industry or subject matter knowledge

The book provides a comprehensive foundation, while the subscription delivers instructor-led video tutorials, mock exams, and the question bank for active practice and exam readiness.

INCLUDES

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Amazon BookCAD $299.99

Comprehensive ISE study guide

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Monthly Subscription$29.99/month

Video tutorials · Mock exams · Question bank

Pathway 2

Accelerate Your Prep

For candidates with a finance degree or relevant industry experience

The interactive quick study guide delivers a focused review of core concepts, while the subscription provides video tutorials, mock exams, and the question bank to sharpen your exam readiness.

INCLUDES

⚡

Online Interactive Quick Study GuideCAD $49.99

Focused concept review

🎓

Monthly Subscription$29.99/month

Video tutorials · Mock exams · Question bank