Canadian Securities Course (CSC) Level 2 Practice Exam

The asset class associated with high risk and volatility and no dividend payouts is speculative. Speculative assets are often characterized by their potential for significant price fluctuations, which can lead to both high returns and substantial losses. Investors in speculative assets are usually seeking to capitalize on market momentum and short-term price movements rather than looking for income generation through dividends.

This category includes investments like certain types of stocks, cryptocurrencies, or startup companies, where the prospects for growth are uncertain and highly dependent on market sentiment and external factors. In such cases, earnings may be reinvested back into the company for growth rather than paid out as dividends, aligning with the description provided in the question.

Other asset classes like growth may also exhibit high volatility, but they are often associated with the potential for future profit increases and can lead to capital gains, even if not structured for dividend payouts. Similarly, venture refers to capital allocated to emerging businesses that may yield high returns but also entails risk. In contrast, conservative asset classes are generally lower in risk and often provide stable dividends, making them distinct from speculative investments.