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Investor Types Flashcards

(61 cards)

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1
Q

What does ‘Insti’ refer to in the context of investor personas?

A

Institutional investors, typically large organizations like pension funds, insurance companies, and endowments.

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2
Q

True or False: Intermediaries are individuals or firms that facilitate transactions between buyers and sellers.

A

True

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3
Q

Fill in the blank: Financial Advisors (FA) provide ________ to clients regarding investment decisions.

A

advice

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4
Q

What is the primary role of a Wealth Manager?

A

To provide comprehensive financial services, including investment management and financial planning, to high-net-worth individuals.

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5
Q

Which investor persona typically has the least amount of capital to invest?

A

Retail investors

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6
Q

Multiple Choice: Who are considered institutional investors?

A

Pension funds, insurance companies, and mutual funds.

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7
Q

True or False: Retail investors usually have access to the same investment opportunities as institutional investors.

A

False

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8
Q

What is one key characteristic of intermediary investors?

A

They act as a bridge between institutional investors and retail investors.

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9
Q

Fill in the blank: Wealth Managers often cater to clients with a minimum net worth of ________.

A

$1 million

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10
Q

Short Answer: What type of investment strategy do institutional investors typically use?

A

Long-term, diversified investment strategies.

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11
Q

Multiple Choice: What is a common service provided by Financial Advisors?

A

Portfolio management, retirement planning, tax planning.

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12
Q

True or False: Retail investors can benefit from the same research resources as institutional investors.

A

False

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13
Q

What is a key difference between retail and institutional investors?

A

Institutional investors usually have more capital and access to exclusive investment opportunities.

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14
Q

Fill in the blank: Intermediaries often receive ________ for the services they provide.

A

commissions

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15
Q

Short Answer: Describe a typical profile of a retail investor.

A

An individual investor who buys and sells securities for personal accounts.

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16
Q

Multiple Choice: Which persona is most likely to use robo-advisors?

A

Retail investors

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17
Q

True or False: Financial Advisors can only work with wealthy clients.

A

False

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18
Q

What is the main goal of institutional investors?

A

To achieve superior returns on large amounts of capital over the long term.

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19
Q

Fill in the blank: Wealth Managers often provide ________ services, including estate planning.

A

holistic

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20
Q

Short Answer: What is a common challenge faced by retail investors?

A

Limited access to research and investment opportunities.

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21
Q

Multiple Choice: What type of clients do wealth managers typically serve?

A

High-net-worth individuals.

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22
Q

True or False: Intermediaries can include brokers and financial advisors.

A

True

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23
Q

What is a primary function of Financial Advisors?

A

To help clients develop and implement investment strategies.

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24
Q

Fill in the blank: Institutional investors often have dedicated teams for ________ analysis.

A

research

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25
Short Answer: How do retail investors typically access the stock market?
Through brokerage accounts.
26
Multiple Choice: Which persona typically has less regulatory scrutiny?
Retail investors
27
True or False: Institutional investors usually invest in a wider range of asset classes compared to retail investors.
True
28
What is a common investment vehicle used by institutional investors?
Hedge funds, private equity, and mutual funds.
29
Fill in the blank: The primary goal of retail investors is to ________ their personal wealth.
grow
30
Short Answer: What is a key advantage of using a wealth manager?
Access to personalized financial planning and investment advice.
31
Multiple Choice: Who is responsible for managing assets on behalf of clients in an advisory capacity?
Wealth Manager
32
True or False: Financial Advisors can provide both investment and non-investment related advice.
True
33
What distinguishes a financial intermediary from a traditional investor?
They facilitate transactions rather than directly investing their own capital.
34
Fill in the blank: Retail investors often rely on ________ for investment advice.
self-research
35
Short Answer: What is an example of an institutional investor?
A pension fund.
36
Multiple Choice: Which type of investor typically has more resources for market research?
Institutional investors
37
True or False: Wealth Managers often charge fees based on a percentage of assets under management.
True
38
What is one benefit of being a retail investor?
Greater flexibility in investment choices and strategies.
39
Fill in the blank: Intermediaries often enhance market ________ by matching buyers and sellers.
liquidity
40
Short Answer: Describe a typical investment approach of a financial advisor.
Developing a tailored investment strategy based on client goals.
41
Multiple Choice: Which investor persona is least likely to engage in high-frequency trading?
Retail investors
42
True or False: Institutional investors usually have a longer investment horizon than retail investors.
True
43
What role do financial advisors play in the investment process?
They provide guidance and recommendations to help clients make informed investment decisions.
44
Fill in the blank: Wealth Managers often integrate ________ into their services to optimize client portfolios.
tax strategies
45
Short Answer: What is a common mistake retail investors make?
Reacting emotionally to market fluctuations.
46
Multiple Choice: Who typically has fiduciary responsibility to act in the best interest of clients?
Financial Advisors
47
True or False: Intermediaries can help reduce transaction costs for investors.
True
48
What is a significant challenge for institutional investors?
Managing large portfolios while minimizing risk.
49
Fill in the blank: Retail investors often use ________ to educate themselves about investing.
online resources
50
Short Answer: What is the main focus of a wealth manager?
To grow and protect client wealth.
51
Multiple Choice: Which investor persona is most likely to require comprehensive financial planning?
Wealth Manager clients
52
True or False: Financial Advisors are only concerned with investment performance.
False
53
What is a primary investment goal for retail investors?
To achieve personal financial goals through investment.
54
Fill in the blank: Institutional investors often invest in ________ to achieve diversification.
multiple asset classes
55
Short Answer: How do intermediaries benefit from their role in the market?
By earning commissions and fees for their services.
56
Multiple Choice: Which investor persona typically uses financial technology platforms?
Retail investors
57
True or False: Wealth Managers usually focus exclusively on investment management.
False
58
What is a common goal for institutional investors in terms of returns?
To outperform market benchmarks.
59
Fill in the blank: Financial Advisors may specialize in ________ planning for clients.
retirement
60
Short Answer: What is a common characteristic of retail investors?
Limited investment knowledge and experience.
61
Multiple Choice: Which persona is often involved in negotiating large transactions?
Institutional investors

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