4. Main Financial Asset Classes & Their Characteristics Flashcards
1
Q
Who authorises a UK based deposit taker
A
Prudential Regulation Authority
2
Q
What are fixed interest investements
A
Loans made by the investor to an institution for a fixed term and fixed rate of interest
3
Q
What is a Gilt
A
Fixed interest investment issued by the government
4
Q
What are the 3 main types of corporate bond?
A
Loan stocks
Debentures
Convertibles
5
Q
What is equity investment
A
Buying a share of a company
6
Q
In order for shares to be listed, a company must apply to the stock exchange board and:
A
- 3 yr track record of being a company
- Make full disclosure of company financial affairs
- Offer 10% of total shares for public subscription
