Exam (elaborations)
Glossary - CISI Introduction to Securities and Investment Exam Questions and Answers
- Course
- Institution
Glossary - CISI Introduction to Securities and Investment Exam
[Show more]
Content preview
Glossary - CISI Introduction toSecurities and Investment Exam
Annual General Meeting (AGM) - Answer -Yearly meeting or shareholder. Mainly used
to vote on dividends, appoint directors and approve financial statements.
Approved Persons - Answer -Employees in controlled functions, who must be approved
by the regulator.
Articles of Association - Answer -The legal document which set out the internal
constitution of a company. Will include details of shareholding voting Reigate &
company borrowing powers
Authorised Corporate Director (ACD) - Answer -Fund Manager of an OEIC
Balance of Payments - Answer -A summary of all the transactions between a country
and the rest of the world
Bid Price - Answer -Price at which dealers buy stock. It is also the price quoted by unit
trusts that are dual-priced for sales of units.
Bonus Issue - Answer -A free issue of shares to existing shareholders. No money is
paid. The share price falls pro rata. Also known as a capitalisation or scrip issue.
Call Option - Answer -Option giving its buyer the right to buy an asset at an agreed
price.
Convertible Bond - Answer -A bond that is convertible, at the investor's choice, into the
same company's shares
Coupon - Answer -Amount of interest paid on a bond
Credit Creation - Answer -Expansion of loans which increases the money supply.
Closing - Answer -Reversing an original future position by, for example, selling what you
have previously bought.
Debt Management Office (DMO) - Answer -The agency responsible for issuing gilts on
behalf of the Treasury.
, Dividend Yield - Answer -Most recent dividend expressed as a percentage of current
share price.
Bonds - Answer -Interest-bearing securities which entitles holders to annual interest and
repayment at maturity - commonly issued by both companies and governments
CAC 40 - Answer -Index of the price of 40 major French company shares
CGT - Answer -Tax payable by individuals on profit made on the disposal of certain
assets
Central Bank - Answer -Typically have responsibility for setting a nation or regions
short-term interest rate, controlling money supply, acting as banker and lender of the
last resort and managing national debt
Certificates of Deposit (CDs) - Answer -Certificates issued by a bank as evidence that
interest-bearing funds have been deposited with it. CDs are traded within the money
market.
Close-Ended - Answer -Organisations such a companies which are a fixed sized as
determined by their share capital. Commonly used to distinguish investment trusts
(close-ended) from OEICs (open-ended)
Commercial Paper (CP) - Answer -Money market instrument issued by large corporates
Debt Management Office (DMO) - Answer -The agency responsible for issuing gilts on
behalf of the Treasury.
Dematerialised (Form) - Answer -System where securities are held electronically
without certificates
Derivatives - Answer -Options, futures and swaps. Their price is derived from an
underlying asset
Dilution Levy - Answer -An additional charge levied on investors buying or selling units
in a single-priced fund to offset any potential effect that large purchases or sale can
have on the value of a fund.
Diversification - Answer -Investment strategy of spreading risk by investing in a range of
investments
Dividend - Answer -Distribution of profits by a company
Dual Pricing - Answer -System in which a unity trust manager quotes two prices at
which investors can buy and sell
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ALVINK2022. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
