Chapter 1 Flashcards
What is the retail sector
focuses on services provided to personal customer
what is the wholesale sector
focuses on services provided to companies and corporations
financial activities that make up the retail sector
retail banking
insurance
pensions
investment services
financial planning
financial advice
financial activities that make up the wholesale sector
equity
bond
fx
derivatives
insurance
fund management
IB
custodian banking
what are bond markets
debt instruments are bought and sold either corporate of government
what are FX markets
they facilitate the exchange of one currency for another
what are derivatives
a financial contract whose value is dependant on an underlying asset
what are insurance markets
the buying and selling of insurance to manage risk
what are retail banks
they provide services such as taking deposits from and lending funs to retail customers
what are savings institutions
they offer savings products to retail customers but now tend to offer similar services to retail banks
what is peer-2-peer lending
financial technology which allows people to lend or borrow from one another without the need for a bank
what is crowdfunding
the practice of funding a project or venture by raising small amounts of money from a large number of people
what is an investment bank
a bank that provides financial services for corporate and institutional customers, such as investing and raising capital and arranging m&a
what are pension funds
large long-term investors in shares, bonds and cash
what are insurance companies
the insurance industry provides solutions for much more than the standard areas of life and general insurance cover
what is fund managerment
the professional management of investment portfolios for varying institutions and private investors
what are stockbrokers
they arrange trades in financial instruments on behalf of their clients
what are custodian banks
banks that specialise in safe custody services, looking after portfolios of shares and bonds on behalf of other
what are platforms
platforms are online services used by intermediaries, such as independent financial advisors to view and administer there clients portfolios
what are third party administrators
they undertake investment administration on behalf of other firms and specialise in this area of the investment industry
what is financial planning
a professional service available to individuals, their families, and businesses who need objective assistance in organising their financial affairs
what is a financial advisors
professionals who offer advice on financial matters to their clients
what is execution only
these services occur when a customer instructs a financial firm to buy or sell a specific investment product without seeking advice before
what is robot-advice
the application of technology to the process of providing financial advice, but without the involvement of a financial advisor
what is fintech
the use of technology to enhance and deliver superior financial service product offerings
what is esg (environmental, social, governance)
a more conscious investor will take into account esg factors
