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3 Cards in this Set
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Equity - Shares in quoted companies. NYSE & NASDAQ. Do well in good economy. WFE is global market capitalisation = total value of shares on stock exchanges. MTFs taking over. 78 trillion Bond - Domestic = Companies & governments. International = “” “” supranational agencies. US largest. Do well in bad economic. 100 trillion |
FX - set by s&d n strength of one currency to another. Major banks n remittance companies. OTC. BIS = UK biggest. 5 trillion Derivatives - products based on underlying investments e.g. currencies, indices, interest rates, equities, commodities & credit risk. ET & OTC. ET = CME OTC = Europe |
Insurance market - specialise in management of risk. US, China, Japan n UK. Reinsurance industry = insure against insurance contract |
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Retail banks - take deposits, lend funds, payment and money transmission. Businesses & individuals. Larger offer investments, pensions and insurance. Savings - offer savings products n similar services to banks. Jointly owned by individuals who deposit or borrow. Can become companies (demutualisation). Deposit accounts and mortgages. NS&I = premium savings bonds n savings certificates. P2P & crowdfunding - Cuts out banks. borrowers get lower rates n savers get higher with. Profit through a fee. Accept higher risk for more returns. Rates depend on the borrower and risk tolerance. No interest paid while waiting to be lent out. Withdrawals not always possible n cost. ISA = tax free wrapper. Crowdfunding = funding a project or venture: donation, debt (interest) or equity (shares) |
Investment banks - advise n finance for companies going on SE; issue new securities for finance, takeovers, mergers & acquisitions; banking; treasury dealing to protect from IR & ER fluctuations; investment management; securities trading in bonds derivatives broking n dist services. Pension funds - provided through employer or self directed scheme. Long term in shares, bonds, cash or property. Insurance - Payment protection policies if individ unable to repay loan, fleet insurance if plane crash. Premiums for cover period. Used to buy investments. US World UK Euro Fund managers - UK in Europe US in world. Pensions, insurance, UT, OEIC. Charge for managing money. Institutional n private. Buy and sell. |
Stock brokers - arrange trade in financial instruments for clients, charge commission. Advise what investors should buy so called wealth managers. Custodian banks - safekeep assets, arrange settlement of securities, collect dividends and interest, provide info on underlying companies AGM, manage cash transactions, perform fx trans & regular reporting. Platforms - IFAs use to administer clients portfolio. Buy n sell invest, analyse for best product, arrange custody for cli assets. Wraps = ISA, pension & insurance bonds n fund supermarket = UT & OEICs. |
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TPA - administer on behalf of firms. Enable firms to focus on core areas and fix its cost. Trade & professional bodies - Bonds, ICMA. Derivatives, FIA n ISDA. Insurance comp, ABI. Wealth management, PIMFA. Banks, ABFA n BBA. Investment funds, TISA n DATA Financial Planning - deals with money n assets with monetary value. Current value of bank balance, loans, investments etc. Meet objectives. |
Financial advisers - offer advise to client to recommend suitable products. Independent = comprehensive and fair analysis of all products, unbiased & unrestricted. Restricted = only on their products. FCA Execution only - customer asks to buy or sell without being advised. They’re responsible for own decision and firms must keep a record saying they gave no advice and made it clear at time of sale they’re not responsible for the product’s suitability Robo advise - index funds or ETC. |
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