Institutional investors - Study guides, Class notes & Summaries

property market equation - space market / capital market buildings built on air rights - MetLife Building, New York tangible property - Physical asset that can be owned Can be real or personal property EX: Real property, (land and other assets that are permanently attached to the land) buildings, canals, crops, fences, land, landscaping, machinery, minerals, ponds, roads. EX: Personal property, (property that is moveable) vehicles, furniture, boats, and collectibles. intangible property -...

Assume the market S&P has increased 15% in value this year. XYZ Corp. Stock has increased 50% during the same time period. An investor who believed XYZ Stock would be a good investment now would be correct answers attempting to invoke a "Price Momentum" investment strategy. A "Price Momentum" investment strategy tries to ride stocks whose prices have risen much higher and faster than the overall market. Given the fact pattern of the question, price momentum is the best choice.An "Aggress...

Corporate Finance - Answer-focuses on financial decision making by a firms management Investments - Answer-various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions - Answer-make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasury Securities - Answer-generally bonds that are issued by the US government Corporate Bonds - Answer-firms borrowing from the public Stocks - Answer-a share of ownership...

Externalities are costs that a business does not bear itself but instead imposes on others. Which of the following is not an example of an externalised cost? Ans: Building on brownfield sites. Explanation Externalities are costs that a business does not bear itself (internalise) but instead imposes on others (externalises). ESG analysis considers these externalised costs such as climate change, greenhouse gas emissions, pollution, emissions, waste management, resource depletion, water ...

FINRA: Correspondence Correspondence, which is defined as any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period. Can you purchase securities prior to registration? Settlement? Cannot purchase securities prior to registration (against Securities Act of 1933), but can purchase prior to settlement (when-issued) FINRA: Institutional communication Any written or electronic communication that is distributed...

Once registration is effective for a non-exempt new issue, customers that previously received a preliminary prospectus during the 20-day cooling off period are: A. automatically confirmed with a purchase of the issue B. contacted by the underwriter to see if they wish to purchase the issue C. obligated to buy an amount of the issue determined by the underwriter D. permitted to make a competitive bid for the issue correct answers The best answer is B. Once registration is effective, cu...

5th percentile vs 25th percentile performance - ANSWER-5th percentile managers outperform in every comparison BUT 25th percentile managers' performance is more volatile --> even if 25th percentile managers outperform they tend to mean revert --> demonstrates the perils of choosing managers based on historical performance alternative asset performance evaluation - ANSWER-unlike in traditional assets, alpha is difficult to define in alternatives investing; success can be defined as posit...

What are three characteristics of hedge funds? They are 1. Actively Managed 2. Unregulated 3. Limited Investors Why are Hedge Funds actively managed? 1. They aim for profitability regardless of market circumstances 2. Collect management and performance fees Why are Hedge Funds Unregulated? They can't market themselves generally only to accredited investors What limits are there for Hedge Funds finding investors? 1. Can only find accredited investors 2. Can only target a certain numb...

FINN 3003 Exam 4 (Ch 10-17) || All Questions & Solutions (100% Correct) FINN 3003 Exam 4 (Ch 10-17) || All Questions & Solutions (100% Correct) New York Stock exchange - ANSWER - Which would be an example of the secondary market? Types of Investments - ANSWER - -Money market securities -Stocks (common vs. preferred stock) Common stock - ANSWER - a certificate issued by a firm to raise funds that represents partial ownership in the firm Preferred stock - ANSWER - a certificate issue...

FINRA Website SIE Practice Exam Questions & Answers. 2023/2024 updates ers, the firm agrees to repurchase the shares at no less than the original cales price. Such agreements are: A. Prohibited as fraudulent and manipulative B. Permissible if the securities are deposite into escrow C. Prohibited unless the firm immediately sets aside funds for the repurchase D. Permissible if the customers retain the right to sell the securities into the open market - A. Prohibited as fraudulent and...