IOC EXAM Flashcards
What sector does pensions come under?
Retail sector
What services does a custodian offer?
- holding assets in safekeeping
- arranging settlement
- processing corporate actions
What is the largest stock exchange in the world?
New York stock exchange
What is the corporate equivalent of treasury bills known as?
Commercial paper
What are the 4 stages of CREST, in order?
1) trade matching
2) stock settlement
3) cash settlement
4) register update
What trading systems are examples of a quote driven system?
NASDAQ and SEAQ
Why would a company have a low dividend yield?
A large proportion of the profits are being put back into the company
If a company closes down, who gets paid last?
The ordinary shareholders
What is a spot transaction?
Rate quoted by a bank for the exchange of one currency for another with immediate effect
How are money market instruments typically settled?
CREST
What organisation provides compensation in the event that a bank goes bust?
FSCS
What’s the minimum market cap for a full listing on the LSE?
£700,000
How much does the FSCS provide protection up to?
£85,000
What is inflation measured on?
The consumer price index and the retail prices index
What does the Gross domestic product do?
It measures the country’s output. It measures it through consumer spending + government spending + investment + exports minus imports
What is the PSNCR?
Difference between government spending and government income
Up to what amount of tax is removed on a Savings income for a basic rate taxpayer?
£1,000
How much tax is removed on a savings income for a higher rate taxpayer?
£500
What are the three types of money market instruments?
- treasury bills
- certificates of deposit
- commercial paper
How often must a public company hold an AGM meeting?
Within 6 months of the financial year
How do you work out the dividend yield?
Dividend divided by market capitalisation x 100
