4. Main Financial Asset Classes & Their Characteristics

Question 1

Who authorises a UK based deposit taker

Answer 1

Prudential Regulation Authority

Question 2

What are fixed interest investements

Answer 2

Loans made by the investor to an institution for a fixed term and fixed rate of interest

Question 3

What is a Gilt

Answer 3

Fixed interest investment issued by the government

Question 4

What is equity investment

Answer 4

Buying a share of a company

Question 5

In order for shares to be listed, a company must apply to the stock exchange board and:

Answer 5

1. 3 yr track record of being a company
2. Make full disclosure of company financial affairs
3. Offer 10% of total shares for public subscription