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Investment Banking Flashcards | StudBud
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Investment Banking
Investment Banking
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Game to gain more knowledge for Financial markets instruments and Investment Banking industry
Flashcards
43 cards
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Practice quiz
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Questions
43
Answers
1
Compliance in finance industry involves financial institutions operating within...
tax relationships
Specific territories
regulatory guidelines
organizational plans
2
What is a yield on a stock?
A halt in the stock market
Share price of today minus the price in the beginning
The total quantity traded today
A simple ratio of annual dividends divided by the share price
3
In a reverse split of 50k@5€, use a 1 for 5 split, how many shares will be offered after split?
10000
25000
100000
250000
4
What is a settlement date?
Transaction date
Value date
Delivery date
Payment date
5
What ESMA stands for?
European securities and marketing authority
European selling and marketing act
European securities and markets act
European securities and markets authority
6
What is the purpose of the financial system?
Establishing a stock market
Creating liquidity in the market
Moving funds from banks to customers
Moving funds from those with extra funds to those with a need for funds
7
What is a FIAT currency?
Gov-issued ccy that is not backed by a commodity
Gold standard ccy
Gov-issued ccy that is not backed by Bitcoin
Gov-issued ccy that is backed by a Gold
8
The index of 30 companies meant to reflect the overall health of the US economy
Nasdaq
SP 500
NYSE
Dow Jones Industrial Average
9
Stock split is most likely to occur when...
stockholders demand higher dividends
Company losses money
Price of a stock becomes too high for average investors
Stock market as whole is doing good
10
What is a derivative?
The derived value of a hedge fund
Using calculations to determine the value of a stock
Contract w/price dependent on value of underlying asset
Form of exchanging stock btw 2 parties
11
OTC markets are typically...
Informal, transparent, private, standard and regulated
Formal, transparent, public, standard and regulated
Informal, transparent, public and not regulated
informal, less transparent, private and less regulated
12
What is property or other asset that a borrower offers to secure a loan?
Stocks
Principal
Mortgage
Collateral
13
Forward traded OTC
True
False
14
What is a currency Forward Contract?
Agreement btw 2 parties
All are correct
Exchange fix amount of one ccy to another ccy in the future
future rate is fixed in advance
15
What is the history of all cryptocurrencies?
Golden Chain
Cryptochain
Bandchain
Blockchain
16
How do bond rating work?
Lower the bond rating, higher the interest rate
Higher the bond rating, lower the interest rate
Lower the bond rating, lower the interest rate
Higher the bond rating, higher the interest rate
17
What means "investing in various financial instruments in order to reduce risk"?
Compliance
Diversification
Hedging
Mutual agreement
18
What is the countries largest and most powerful stock exchange?
SL Benfica
Nasdaq 100
SP 500
NYSE
19
Which is the best investment bank in the world?
BNP Paribas
United Kingdom
FC Porto
US Gov
20
What LSE stands for?
London Security Exchange
Liquid Security Exchange
Legal Security Exchange
London Stock Exchange
21
OTC markets - Computer or Telef link network of dealers at financial institutions
False
True
22
How u call to all the money that goes out of a business?
Profit
Costs
Revenue
Cost of Sales
23
Investment vehicle that delivers diversification but is less expensive and not actively managed
Mutual Fund
Stock
Cannabis
ETF
24
Small investors pool their € to create diversified portfolio managed by a fund manager is a ...
Mutual Fund
Bond
Portfolio
ETF
25
Below are participants in the derivative market except
Arbitrageurs
Hedgers
Speculators
Cristiano Ronaldo
26
The time at which issuer has to repay loan/bond?
Unwind
Maturity
Expiry
Early Termination Option
27
What is the largest exchange in the world?
Eurex
London Stock Exchange
Chicago Mercantile Exchange
Euronext
28
What is a reverse stock split?
Reduction in the number of companies traded shares
Stock that fails
Bonus of stocks for the holders
None
29
Which one is "not" a characteristic of derivative?
On-balance sheet assets
Can be leveraged
Can be exchange traded or OTC
Prices derived from spot prices of underlying
30
What is the one reason that corporations sell stocks?
Decrease the risks involved with their activity
Decrease sources of revenue in order to decrease expense
Diversify the investment they already own
Increase sources of revenue in order to expand
31
There are more corporations listed on stock exchanges than the OTC markets
True
False
32
What are the 4 types of risk?
Credit, time, debt and insurance
DEbt, time, mortgage and savings
Inflation rate, debit, insurance and savings
Credit, liquidity, inflation rate and time
33
What is a dividend?
Cakes divided out to stockholders
Gains made in the stock market
Profit divided out to shareholders
34
Forward traded OTC is?
The buyer agrees to buy all the products in the future
Buyer agrees to pay a pre-specified amount for a pre-specified quantity
The Buyer agrees to deliver the quantity in a future date without payment
The buyer agrees to exchange potatoes today
35
These are uses of derivatives. Which one is not correct?
Risk mitigation
Cannot be leveraged
Enhances liquidity of financial markets
Price discovery of future prices of underlying
36
Which one is only traded on OTC markets?
Futures
Forwards
Options
Equities
37
Derivatives can be based on which products?
Commodities
Both
Financial products
None
38
What is a future value date?
Two business days after transaction date
Any business day after spot date
Same date as transaction date
One business day after transaction date
39
Contract that gives the right to Buy/Sell underlying at a particular price until a specific date is?
Options
Futures
Yield
Bonds
40
What is used by investors to hedge the risk of investment in portfolios?
Emerging markets
Venture Capital
Derivatives
Stocks
41
An individual who exchanges financial assets in a financial market after receiving orders
Creditor
Trader
Player
Stock Broker
42
Investment strategy that is very risky but calculated risk
Speculating
Savings
Investing normally
Gambling
43
What is the motto of the stock market?
buy low and sell low
Buy low and sell high
Buy high and sell low
Go big or go home
