8 Asset Classes Flashcards
1
Q
Name 5 Asset Classes
A
1 Cash 2 Fixed Interest 3 Equities 4 Property 5 Alternative Assets
2
Q
Cash
A
Protection £85K
3
Q
Fixed Interest Features
A
1 Issuers Name - identifies issuer and who going to pay interest and capital
2 Coupon - nominal value/par and the coupon rate
3 Maturity Date
4
Q
Outline factors that affect share prices
A
1 External economic and political factors 2 Investment sentiment 3 Profit expectation 4 Dividend Expectation 5 Takeover activity 6 Quality of management
5
Q
Costs for equities
A
1) stamp duty reserve tax on 0.5% on purchase
2) Panel of Takeovers and Mergers Levy (PTM) over £10K
6
Q
Hedge Funds advantages and disadvantages
A
advantages Absolute Return Low Correlation Low Volatility Diversification Disadvantage Liquidity Regulatory Risk Leveraging Currency
7
Q
Outline The Business Cycle
A
Recovery followed by economic growth
Boom
Slowdown
Recession
