1. Intro Flashcards
What are Primary markets
Where financial assets are issued and sellers obtain funds.
What are Secondary markets
Where already issued assets are exchanges, providing liquidity to their owners.
Investor
Person/institutions that buys/sells financial assets.
Speculator
Person/institutions that buys/sells financial assets in order to profit from favourable fluctuations in prices.
Regulator
Institution responsible for determining the laws and rules that govern what financial institutions can do.
Commercial Bank
Institution whose main business is to receive deposits and to give loans accordingly.
Investment Bank
Institution that enables corporate financing processes.
Company
Corporations are the main issuers of financial assets
They are the major investors in real assets which they fund issuing financial assets.
Rating agency
Entity that analyses the credit quality of debt issuers. The debt issuers pay the rating agencies for getting a rating assigned to their debt.
Analyst
Individual who analysis asset characteristics with the objective of estimating asset values.
They tend to work for investment funds, brokerage firms, or investment banks, in order to support the decision making process of these institutions/their customers.
They prepare two main types of analysis.
Fundamental analysis
Main focus on financial reposts and “qualitative” parameters (management, competitive advantages, potential risks…).
Technical analysis
Main locus on market historical data.
Trader
Individual who buys or sells financial assets.
It could be an individual investor, and, more often, an investment bank employee who operates on behalf of the bank according to its own decisions.
Broker
Individual or company that intermediates a transaction between a buyer and a seller.
Investment Fund Manager
Individual or company that manages a group of investors’ funds, who receive in turn proportional shares.
Their salary is linked to how the value of the fund evolves.
They use two investment funds management techniques.
