Cisi Introduction To Securities And Investment Exam

Floating Rate Notes (FRNs) {Ans: Corporate bond. Coupon payment is variable and is sometimes linked to an index such as the SOFR (Secured Overnight Financing Rate) or SONIA (Sterling Over Night Index Average).}Federal Reserve {Ans: The central bank of the United States- comprises 12 regional Federal Reserve Banks}Private Company {Ans: A company owned by a person, family, or small group of investors that does not sell stock to the public. Can have just one shareholder. (ltd).}Mandatory corporate action with options {Ans: The shareholder has a choice until a specified date, there is a default option if they do not intervene. e.g. Rights issue.}bearer share {Ans: A corporate share that is owned by the holder of the share certificate and is not registered; therefore, ownership remains private.}What is a Corporate Action? {Ans: Any event within a company that affects its shareholders or bondholders.}Residence nil-rate band (RNRB) {Ans: gives an additional allowance to be used to reduce the IHT against that person's home. The home allowance remains at £175,000}SETSqx {Ans: for less liquid shares that are not traded on SETS}free allowance, basic, higher and additional rate tax percentages on dividends {Ans: Free allowance=