RS 203 · Level 200 · Intermediate

How the Securities Industry Works

Name: RS 203 How the Securities Industry Works
Author: Elizabeta Dimoska

This course explains the machinery behind every trade: who the participants are, how orders are matched and settled, how brokers are regulated and paid, and how people qualify to work in the industry. It is the closest match to what a licensed broker must know. This free course by Elizabeta Dimoska runs to ten modules and about 15 study hours.

An electronic ticker board at the TMX Group in Toronto showing TSX and world index levels

Photo: Open Grid Scheduler / Grid Engine, CC BY-SA 4.0, via Wikimedia Commons (cropped).

Start Module 1 →

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What you'll be able to do

Map the participants in the capital markets.
Explain how an order becomes a settled trade.
Calculate margin and short-sale requirements.
Describe the duties a broker or advisor owes a client.
Name the regulators and the main rules in Canada and the US.
Explain the licensing paths into the industry.

About the figuresThis course contains many regulatory figures: limits, thresholds, settlement cycles and exam names. They were checked in November 2026. Rules change, so confirm any figure you rely on with the regulator’s own website.

Before you startPrerequisite: Intermediate (Course 2). Tools used: the RiskStock paper trading account, regulator websites, a live Level 1 quote.

How this course worksEach module has objectives, the lesson with worked examples, a practice mission using a real filing, a RiskStock tool or a spreadsheet, and a quiz. Pass a module quiz with 75% to mark it complete; quizzes can be retaken as often as you like. When the modules are done, complete the capstone and the 20-question final exam (pass mark 70%, one retake every 24 hours). Passing both unlocks a certificate of completion, and completing all nine university-level courses earns the Advanced Diploma. Everything is saved in your browser; no account is needed.

The syllabus

Ten modules and about 15 study hours in all: short, dense lessons (about 67 minutes of reading), then the worked problems, practice missions, quizzes and the capstone.

A map of the capital markets Core

Distinguish primary from secondary markets and identify the main participants.

~6 min read · ~1.5 hr with practice

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Exchanges and trading venues Core

Name the main venues and explain listing, market makers and trading halts.

~6 min read · ~1.5 hr with practice

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Orders, quotes and market microstructure Core

Read a quote, choose the right order type and estimate trading costs.

~7 min read · ~1.5 hr with practice

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Clearing, settlement, custody and investor protection Core

Follow a trade from execution to settlement and state what investor protection funds do and do not cover.

Video 3:51~6 min read · ~1.5 hr with practice

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Brokers, advisors and the duties they owe Core

Compare brokerage business models, explain know-your-client and suitability, and identify how firms are paid.

~6 min read · ~1.5 hr with practice

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Regulation and market integrity Advanced

Name the regulators and main laws in Canada and the US and define insider trading and market manipulation.

~7 min read · ~1.5 hr with practice

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Margin and short selling Advanced

Calculate leverage, equity and margin call prices for long and short positions.

~7 min read · ~1.5 hr with practice

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The primary market, how new securities are sold Advanced

Describe the IPO process, underwriting methods and the costs of going public.

~7 min read · ~1.5 hr with practice

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Products, fees and conflicts of interest Advanced

Compare the main retail investment products and identify how fees and compensation create conflicts.

~7 min read · ~1.5 hr with practice

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Licensing, careers and checking an advisor Advanced

Describe the licensing routes in Canada and the US, the main professional credentials and how to verify a registration.

~8 min read · ~1.5 hr with practice

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After the modulesThe capstone project → When you're readyFinal exam & certificate →

Your notes

Every note you take in a module collects here. They're stored only in this browser, so export them to keep them.

Common questions

Is RS 203 really free?

Yes. All ten modules, the quizzes, the capstone, the 20-question final exam and the certificate are free and need no sign-up. Your progress, scores and notes are saved privately in your own browser.

What should I know before starting?

The suggested prerequisite is Intermediate (Course 2). The 200-level courses can be taken in any order once the prerequisite is done.

How long does it take?

About 15 study hours. The reading itself is short and dense, about 67 minutes; most of the time goes on the worked problems, the practice missions, the quizzes and the capstone.

Is the course for Canadian or US investors?

Both. Where rules, terms or tax treatment differ between Canada and the United States, the module says so and names both versions.

Will this course get me licensed as a broker or advisor?

No. It covers much of what the licensing exams test, but working as a broker or advisor requires passing the regulator-approved exams and registering through a firm. Module 10 explains the routes in Canada and the US. The RiskStock certificate is a certificate of completion, not a licence.

Who wrote this course?

It was written by Elizabeta Dimoska, founder and writer of RiskStock. RiskStock is educational and is not a registered dealer or adviser.

Keep learning

Educational content only — not investment, tax or legal advice. Companies, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Regulatory figures, limits and tax rules change; confirm current details with the regulator or tax authority. Worked examples are not forecasts. RiskStock is not a registered dealer or adviser, and its certificates are certificates of completion, not licences. Course written by Elizabeta Dimoska.