WGU D775 OA GUIDE COMPREHENSIVE
STUDY GUIDE
◉ Options.
Answer: Contracts giving the right (not obligation) to buy/sell at a
set price before a date.
◉ Futures.
Answer: Contracts requiring buying/selling at a set price on a set
date.
◉ Investment Funds.
Answer: Pools of money from many investors invested in a portfolio.
◉ Mutual Funds.
Answer: Investment funds priced daily based on net asset value
(NAV).
◉ Exchange-Traded Funds (ETFs).
Answer: Investment funds traded like stocks.
◉ Hedge Funds.
,Answer: High-risk funds for wealthy or institutional investors.
◉ Pension Funds.
Answer: Retirement savings invested for long-term growth.
◉ Public Markets.
Answer: Securities traded openly on exchanges.
◉ Private Markets.
Answer: Securities traded privately, not on public exchanges.
◉ Primary Market.
Answer: Where new securities are sold for the first time (e.g., IPO).
◉ Secondary Market.
Answer: Where existing securities are traded between investors.
◉ Dealer Market.
Answer: Market where dealers buy/sell from their own accounts.
◉ Auction Market.
, Answer: Market where prices are set by matching highest bid and
lowest ask.
◉ Depository Institutions.
Answer: Banks, credit unions, and others that take deposits and
make loans.
◉ Investment Institutions.
Answer: Firms that help raise or invest money (e.g., investment
banks, mutual funds).
◉ Insurance Companies.
Answer: Firms that manage financial risk by providing coverage.
◉ Gross Domestic Product (GDP).
Answer: Total value of goods and services produced in a country.
◉ Consumer Price Index (CPI).
Answer: Measures changes in prices of consumer goods and
services.
◉ Producer Price Index (PPI).
Answer: Measures price changes at the producer/wholesale level.
STUDY GUIDE
◉ Options.
Answer: Contracts giving the right (not obligation) to buy/sell at a
set price before a date.
◉ Futures.
Answer: Contracts requiring buying/selling at a set price on a set
date.
◉ Investment Funds.
Answer: Pools of money from many investors invested in a portfolio.
◉ Mutual Funds.
Answer: Investment funds priced daily based on net asset value
(NAV).
◉ Exchange-Traded Funds (ETFs).
Answer: Investment funds traded like stocks.
◉ Hedge Funds.
,Answer: High-risk funds for wealthy or institutional investors.
◉ Pension Funds.
Answer: Retirement savings invested for long-term growth.
◉ Public Markets.
Answer: Securities traded openly on exchanges.
◉ Private Markets.
Answer: Securities traded privately, not on public exchanges.
◉ Primary Market.
Answer: Where new securities are sold for the first time (e.g., IPO).
◉ Secondary Market.
Answer: Where existing securities are traded between investors.
◉ Dealer Market.
Answer: Market where dealers buy/sell from their own accounts.
◉ Auction Market.
, Answer: Market where prices are set by matching highest bid and
lowest ask.
◉ Depository Institutions.
Answer: Banks, credit unions, and others that take deposits and
make loans.
◉ Investment Institutions.
Answer: Firms that help raise or invest money (e.g., investment
banks, mutual funds).
◉ Insurance Companies.
Answer: Firms that manage financial risk by providing coverage.
◉ Gross Domestic Product (GDP).
Answer: Total value of goods and services produced in a country.
◉ Consumer Price Index (CPI).
Answer: Measures changes in prices of consumer goods and
services.
◉ Producer Price Index (PPI).
Answer: Measures price changes at the producer/wholesale level.
