Tutti Flashcards

1
Q

Jitters

A

Preoccupazioni

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2
Q

To allay those jitters

A

Alleviare quelle preoccupazioni

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3
Q

Pepper with questions

A

Tempestare di domande

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4
Q

Outlays

A

Spese

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5
Q

To blow through

A

Superare

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6
Q

To ebb

A

Diminuire

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7
Q

Butt up against

A

Scontrarsi

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8
Q

Bonanza

A

Fortune, prosperity

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9
Q

Summer swoon

A

Svenimento estivo

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10
Q

Earning call

A

Conference call between the management of a public company,analysts, investors and the media to discuss the company’s financial results during a given reporting period.

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11
Q

Stocks and shares

A

Are certificates representing part ownership of a company

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12
Q

Due diligence report

A

Due diligence is an assessment of a business of an investment opportunity. It provides detailed information about financial operational legal and market position to help stakeholders make informed decisions. It is often compiled during M&A and IPO. It is used to give informations to potential stakeholders in private equity investments differently from prospectus which is made public, it is a private document which is not to be shared.

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13
Q

Prospectus

A

Is a formal legal document that companies or financial institutions use to provide essential information to potential investors about an investment offering. It is used to disclose detailed informations to help investors make informed decisions. It is used for public investment opportunities and it’s less detailed than due diligence reports. Mostly used in IPO’s and when a company wants to go public.

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14
Q

Investment bank underwrites stock issue

A

When a company wants to go public an investment bank underwrites a stock issue, essentially buying the shares of the company because it is confident in its ability to resell them in the market, if it is not able to do it the bank keeps the shares. Basically the bank is taking in risk hoping to resell the stocks at an higher price

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15
Q

Ordinary Vs preference shares

A

Ordinary shareholders collect dividends which are variable and paid at the discretion of the company’s board
Preference shareholders collect a fixed dividend amount often before any of the ordinary dividends are payed, also in case of liquidations preference shareholders are the first ones to get payed.

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16
Q

Order of liquidations

A

Owners of bonds and other debts
Owner of preference shares
Owners of ordinary shares

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17
Q

Going public passages

A

Deciding to go public
Deciding with an IB the price and amount of share
Contact indipendent accountants to do a due diligence report
The company generates a prospectus to publish for potential investors to make informed investment decisions
The company makes an IPO and the IB underwrites a stock issue

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18
Q

Over the counter markets

A

They are decentralised markets in which counterparties exchange financial instruments with one another without the need of a centralised exchange or a clearing house.
They have way less regulations and usually trade more exotic and less standardized financial products

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19
Q

Market makers

A

Market makers are financial institutions or individuals that provide liquidity to the financial markets by being prepared to buy and sell assets at a specific bid and ask price that they decide. They make their profit on the spread between bid and ask price.

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20
Q

Stockbroker

A

Stockbroker are professionals or financial institutions which act as the intermediary between investors and market makers or exchanges. Their main occupation is to execute trades on behalf of their clients by interacting with exchanges.
Nowadays most brokers actually operate online, drastically reducing operating fees which is their main source of income.

21
Q

Right issue

A

A right issue is a method with which a company raises additional capital by offering existing shareholders the opportunity to buy new shares at a discounted price wrt the current market price (which is usually higher than the nominal value) usually proportionally to their existing holdings.

22
Q

Bonus issue scrap issue and capitalization issue

A

It’s an offer of additional shares to existing shareholders. A company may decide to employ their retained earnings issue additional shares to share holders to reward them instead of paying dividends.
The total market capitalization of the company doesn’t change, for each individual investor the only thing that changes is the amount of shares but nobody actually makes any profit.
There are several reasons why a company may want to do this.
1) they make the market for their stock more liquid lowering the price per share and the amount of shares
2) bonus shares are not taxed unlike dividends
3) a bonus issue displays financial health for the company

23
Q

Blue chips stocks

A

Stock of large companies with high market capitalization and good reputation , usually they are market leaders in their sector and have a long history of surviving difficult economic conditions.
Usually they also have an history of paying good dividends .
They are usually bought by institutional investors and insurance companies.

24
Q

Growth stocks

A

Shares of companies which are expected to grow faster than the broader market, they are often companies working with very innovative technologies and products.
Usually they don’t pay dividend but prefer to invest their earnings to fuel further growth.
They are also a bit riskier

25
Q

Income stocks

A

Income stocks are stocks which have an history of paying regular dividends to shareholders, bought by investors who want to have a reliable new income streams, they are not expected to growth too much in stock price.

26
Q

Defensive stock

A

Stocks which are expected to react really well to periods of financial instability due to the fact that they provide essential products and services. They are a reliable source of income even during worst times of an economic cycle

27
Q

Value stocks

A

Stocks that investors believe are currently traded at a lower price than what they are actually worth , after careful fundamental analysis on their business model and their financial stability .

28
Q

Bonds

A

A bond is a financial institruments in which an investor lends money to another entity (may be a government a company or other financial institutions) in exchange for a future stream of payment which may be fixed or variable, it may include multiple payments (coupons) or just one final payment (zero coupon bond)

29
Q

What are gilt edged stock or gilts

A

Bonds issued by the UK government

30
Q

What is the name of bonds issued by the UK government

A

Gilts or gilt-edged stocks

31
Q

Dimmi i nomi dei bond americani

A

Usa tresury notes (2-10 years)
Usa tresury bond (10-30 years)

32
Q

What are corporate bonds

A

Bonds issued by companies

33
Q

What are floating rate notes

A

Notes whose interest rate varies with market interest rate (so their market price doesn’t change much)

34
Q

What are convertible shares

A

They are bonds that the owner can later convert into a certain amount of stock shares, they give the owner a fixed income stream as well as the possibility to make profit out of a possibile future food performance of the asset

35
Q

Junk bonds

A

Bonds of low credit entities

36
Q

Principal

A

Is the original amount of money loaned or in the case of bonds, it refers to the face values of the bond which is the amount of money that the holder promises to repay at maturity

37
Q

Yield in general

A

The yield of an investment is the rate of income that the investment grants the investor, it may be defined differently depending on the situation.
For example the yield of a bond is usually the annual coupon payment divided by the market price of the bond

38
Q

Fammi rise

A

Rise rose risen

39
Q

Fammi fall

A

Fall fell fallen

40
Q

To rally

A

To finish up after a fall

41
Q

To rebound

A

Finish up after a fall

42
Q

To surge

A

Rise a lot

43
Q

To drift

A

O go down slowly

44
Q

To slip back a little

A

Fall a little

45
Q

To ease

A

To fall

46
Q

Go through the floor

A

Fall a lot

47
Q

Go through the roof

A

Rise a lot

48
Q

Unit trust

A

Is a type of pooled investment fund that allows multiple investors to invest in a diverse portfolio of assets without buying them directly.

49
Q

Index linked funds

A

They are investment funds that aim to track as closely as possible the performance of a particular index, for example S&P 500