Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CFA Level 1 > G-2 > Flashcards

G-2 Flashcards

1
Q

American depository share

A

The underlying shares on which American depository receipts are based. They trade in the issuing company’s domestic market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

American-style

A

Type of option contract that can be exercised at any time up to the option’s expiration data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Amortization

A

The process of allocating the cost of intangible long-term assets having a finite useful life to accounting periods;

the allocation of the amount of a bond premium or discount to the periods remaining until bond maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Amortized cost

A

The historical cost (initially recognized cost) of an asset, adjusted for amortization and impairment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Amortizing bond

A

Bond with a payment schedule that calls for periodic payments of interests and repayments of principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Amortizing loan

A

Loan with a payment schedule that calls for periodic payments of interest and repayments of principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Annual percentage rate

A

The cost of borrowing expressed as a yearly rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Annuity

A

A finite set of level sequential cash flows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Annuity due

A

An annuity having a first cash flow that is paid immediately

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Anticipation stock

A

Excess inventory that is held in anticipation of increased demand, often because of seasonal patterns of demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Antidilutive

A

With reference to a transaction or a security, one that would increase earnings per share (EPS) or result in EPS higher than the company’s basic EPS; are not included in the calculation of diluted EPS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Arbitrage

A

1) The simultaneous purchase of an undervalued asset or portfolio and sale of an overvalued but equivalent asset or portfolio, in order to obtain a risk-less profit on the price differential. Taking advantage of a market inefficiency in a risk-free manner.
2) The condition in a financial market in which equivalent assets or combinations of assets sell for two different prices, creating an opportunity to profit at no risk with no commitment of money.
3) A risk-free operation that earns an expected positive net profit but requires no investment of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Arbitrage-free pricing

A

The overall process of pricing derivatives by arbitrage and risk neutrality; also called the principle of no arbitrage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Arbitrageurs

A

Traders who engage in arbitrage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Arithmetic mean

A

The sum of the observations divided by the number of observations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Arms index

A

A flow of funds indicator applied to a broad stock market index to measure the relative extent to which money is moving into or out of rising and declining stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Artifical intelligence

A

Computer systems that exhibit cognitive and decision-making ability comparable (or superior) to that of humans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Asian call option

A

A European-style option with a value at maturity equal to the difference between the stock price at maturity and the average stock price during the life of the option, or $0, whichever is greater

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Ask

A

The price at which a dealer or trader is willing to sell an asset, typically qualified by a maximum quantity (ask size)

20
Q

Ask size

A

The maximum quantity of an asset that pertains to a specific ask price from a trader (i.e.) if the ask for a share issue is $30 for a size of 1,000 shares, the trader is offering to sell at $30 up to a 1,000 shares.

21
Q

Asset allocation

A

The process of determining how investment funds should be distributed among asset classes

22
Q

Asset-backed securities

A

A type of bond issued by a legal entity called a “special purpose entity” (SPE) on a collection of assets that the SPE owns; also, securities backed by receivables and loans other than mortgages

23
Q

Asset-based loan

A

A loan that is secured with company assets

24
Q

Asset-based valuation models

A

Valuation based on estimates of the market value of a company’s assets

25
Q

Asset beta

A

The unlevered beta; reflects the business risk of the assets; the asset’s systematic risk

26
Q

Asset class

A

A group of assets that have similar characteristics, attributes, and risk/return characteristics

27
Q

Asset swap

A

Converts the periodic fixed coupon of a specific bond to a Libor plus or minus a spread

28
Q

Asset utilization ratios

A

Ratios that measure how efficiently a company performs day-to-day tasks, such as the collection of receivables and management of inventory

29
Q

Assets

A

Resources controlled by an enterprise as a result of past events and from which future economic benefits to the enterprise are expected to flow

30
Q

Assignment of accounts receivable

A

The use of accounts receivable as collateral for a loan

31
Q

At the money

A

An option in which the underlying’s price equals the exercise price

32
Q

Auction

A

A type of bond issuing mechanism often used for sovereign bonds that involves bidding

33
Q

Autarkic price

A

The price of a good or service in an autarkic economy

34
Q

Autarky

A

A state in which a country does not trade with other countries

35
Q

Automated Clearing House (ACH)

A

An electronic payment network available to businesses, individuals, and financial institutions in the United States, US Territories, and Canada

36
Q

Automatic stabilizer

A

A countercyclical factor that automatically comes into play as an economy slows and unemployment rises

37
Q

Available-for-sale

A

Under U.S. GAAP, debt securities not classified as either held-to-maturity or held-for-trading securities. The investor is willing to sell but not actively planning to sell. In general, available-for-sale debt securities are reported at fair value on the balance sheet, with unrealized gains included as a component of other comprehensive income

38
Q

Average accounting rate of return

A

(ARR) Over the life of a project, the AAR can be defined as the average net income divided by the average book value

39
Q

Average fixed cost

A

Total fixed cost divided by quantity produced

40
Q

Average life

A

See weighted average life

41
Q

Average product

A

Measures the productivity of inputs on average and is calculated by dividing total product by the total number of units for a given input that is used to generate output

42
Q

Average revenue

A

Total revenue divided by quantity debt

43
Q

Average total cost

A

Total cost divided by quantity produced

44
Q

Average variable cost

A

Total variable cost divided by quantity produced

45
Q

Back simulation

A

Another term for the historical method of estimating VaR; the method involves not a simulation of the past but rather what actually happened in the past, sometimes adjusted to reflect the fact that a different portfolio may have existed in the past than is planned for the future

CFA Level 1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions