THINGS I GOT WRONG Flashcards
(23 cards)
How to calculate flat yield
coupon payment / price paid
What is a “registered title”, when relating to quoted equities?
Shareholder name shown on company register
What type of product can be used to offset the risk that the price will rise before you can make the purchase?
Future
The spread of a unit trust is the difference between what?
The selling and buying prices of the units
What type of legal structure is an investment trust?
Limited company
What do firms have to do to give individuals rights to to obtain information about themselves?
They have to respond to subject access requests
What is the MAXIMUM compensation award the Financial Ombudsman can pay out?
£355,000
What short term borrowing arrangement is funded through a current account?
Overdraft
Which city does the trading of eurobonds primarily take place in?
London
What is a key characteristic of an investment trust?
It has a fixed share capital - as it is a company, not a trust
What is a key difference between money laundering and terrorist financing?
Sums of money are smaller in terrorist financing
What is the function of a central bank?
Controlling the money supply
What is the main aim of financial services regulators?
Reduce systemic risk
What is the unit trust managers principal role?
Decides where the money is invested.
Who oversees the actions of the unit trust manager?
The trustee
A UCITS fund investor information document must include:
Ongoing charges figure
Audit fees
What is a specific feature of credit card borrowing?
Balances can be transferred.
Which document sets out the relationship between a company and its shareholders?
Articles of Association
What does the memorandum of association state?
Company name, registered office, share capital, plc/llc
How much of a REITs profits have to be reinvested for it to maintain it’s tax status?
90%
Do government bonds fall under insider dealing legislation?
Yes
What does SIPP stand for?
Self-invested personal pension
What are covered bonds?
A type of asset backed security that have to stay on the company balance sheet.
