Archive for the ‘Level 1’ Category

A Trading Floor is…

Friday, August 21st, 2009

A trading floor is the physical space where listed stocks and bonds are traded (at the New York Stock Exchange or a brokerage company, for example).

A Plan is…

Friday, August 21st, 2009

A plan is an arrangement of making regular payments toward a pension, savings account, or insurance policy. For example, if you decide to put 2% of your monthly income into your savings account on a consistent basis, that’s your personal savings plan.

Quantitative Analysis is…

Friday, August 21st, 2009

Quantitative analysis is an examination of those aspects of something that can be measured numerically, such as the value of a company’s assets. This form of analysis deals with quantity.

Qualitative Analysis is…

Friday, August 21st, 2009

Qualitative analysis is the examination of those aspects of a thing that can’t be measured numerically, such as the skill or intelligence of a company’s owners. Basically, it looks into the quality of what is being analyzed.

Electronic Fund Transfers are…

Friday, August 21st, 2009

Electronic fund transfers (EFTs) are the movement or deposition of money using purely electronic signals, like using an ATM machine to transfer money between accounts, rather than using checks or cash and bank tellers.

The World Trade Organization is…

Friday, August 21st, 2009

The World Trade Organization (WTO) is the international body that deals with trade issues between nations. It provides a forum for moderating any trade talks, but it also is an advocate for trade liberalization – it tries to remove trade penalties or obstacles that countries might have in place.

Antitrust Laws are…

Friday, August 21st, 2009

Antitrust laws are created to prevent companies from adopting certain business practices (like monopolizing an industry) that can restrict trade. These laws are in place to make businesses more competitive, which is better for the economy as a whole.

Investor Relations is…

Friday, August 21st, 2009

Investor relations is a department within a company that distributes information about the company and its financial health to existing and potential shareholders.

An Investor is…

Friday, August 21st, 2009

Traditionally, an investor is an individual who commits money to products with the expectation of greater financial return. It is a major goal of an investor to minimize risk and maximize profit.

Structured Finance is…

Friday, August 21st, 2009

Structured finance is a term used to describe the trading of debt between banks. Basically it is the transferring of risk from one bank to another bank.