Markets Flashcards

1
Q

Unit trusts & mutual funds difference to ETFs

A

Unit trusts and mutual funds priced on underlying NAV from end of each day.
ETFs traded live on exchanges so price not based on NAV alone
Generally, ETFs lower fees as more passive

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2
Q

What is SETS vs SETSqx and SEAQ

A

LSEs online trading system.
Order driven system
SETSqx and SEAQ for less liquid stocks - they are quite driven

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3
Q

Example of a quote driven market

A

Bonds market, SEAQ
Needs market maker

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4
Q

Example of order driven market

A

LSE Equities - matches buyer and seller orders

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5
Q

Standard conditions to list on a market

A
  • publish approved listing particulars or prospectus
  • have published accounts for 3 years
  • at least £30 million for shares or £200,000 for debt
  • 10% of shares held publicly on date of admission
  • demonstrate sufficient working capital
  • need a sponsor
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6
Q

Requirements to list on AIM

A
  • no minimum company size, trading record or number of shares held publicly
  • need a nominated advisor
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7
Q

Requirements to list on ASQE

A
  • have an ASQE corporate advisor
  • at least 24 months audited accounts
  • 10% of shares already held publicly
  • demonstrate appropriate corporate governance along with minimum one independent non-executive director.
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8
Q

Settlement times

A

Equities - t+2
Gilts - t+1

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9
Q

What does the Financial Reporting Council (FRC) make institutional investors engage in

A

The UK Stewardship Code

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10
Q

How are gilt premiums paid

A

Gross coupons semi annually

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