7/1/25, 12:13 AM CISI securities
CISI Securities Exam includes accurate and verified questions
covering core topics such as equity and debt instruments,
derivatives, financial markets, settlement and clearing, portfolio
management, and risk. Designed for candidates pursuing the CISI
An investment approach employed to generate returns
Active management
in an excess of an investment benchmark index. Looks
to exploit mispricing of securities
When one company buys another for cash, or where
Acquisition
the company being purchased is significantly smaller
than the predator company that buys it
The LSE's market for smaller UK public limited
AIM
companies (plcs). Has less demanding admission
requirements and ongoing obligations
The return from a security or a portfolio in excess of a
Alpha
risk adjusted benchmark return
ATSs Platforms for trading that are not recognised stock exchanges
Certificates issued by a US bank that represents shares
American Depository Receipts
(ADRs) in a foreign stock. These certificates trade on
American stock exchanges
The process of spreading the value of an intangible
Amortisation
asset over its useful economic life time. Moving the
asset from a companies balance sheet to its income
statement
The annual meeting of directors and ordinary shareholders of a
company. All
Annual general meeting companies are obliged to hold one and the shareholders
receive the company's report and accounts, as well as
the opportunity to vote on the appointment of
directors.
The process of deriving a risk free profit by
Arbitrage
simultaneously buying and selling the same same asset
/ 1/8
, 7/1/25, 12:13 AM CISI securities
in different markets where a pricing anomaly exists
System used to issue securities where the successful
Auction
applicants pay the price that they bid
Base currency The currency against which the value of a quoted currency is
expressed
A negative move in a securities market, conventionally
Bear market
defined as a 20%+ decline. The duration of the
decline is irrelevant
bearer securities securities for which possession of a certificate is primary
evidence of ownership
The relationship between the returns on a stock and returns on
Beta the market.
Essentially measures the risk of a security/portfolio in
comparison to the market as a whole
A certificate issued by a government or private
Bonds company which promises to pay back with interest the
money borrowed from the buyer of the certificate. Just
debt basically bro
Where an underwriter determines the price of which
Book-building
shares must be sold at in an IPO
When a company issues extra shares free of charge to
Bonus issue
existing shareholders on a pro rata basis.
Person or firm in the business of buying and selling
Broker-dealer
securities for its own account or on behalf of its
customers
Captives are essentially a form of self-insurance
Captive Insurance
whereby the insurer is owned wholly by the insured.
Have responsibilities for setting a country's short term
Central Bank interest rate, controlling the money supply, acting as a
banker and lender of last resort to the banking system
and managing the national debt
An automated suspension of trading on an exchange
Circuit breaker
when prices move by more than a predetermined
amount
The quoted price of a bond. Excludes accrued interest
Clean price
/ 2/8
CISI Securities Exam includes accurate and verified questions
covering core topics such as equity and debt instruments,
derivatives, financial markets, settlement and clearing, portfolio
management, and risk. Designed for candidates pursuing the CISI
An investment approach employed to generate returns
Active management
in an excess of an investment benchmark index. Looks
to exploit mispricing of securities
When one company buys another for cash, or where
Acquisition
the company being purchased is significantly smaller
than the predator company that buys it
The LSE's market for smaller UK public limited
AIM
companies (plcs). Has less demanding admission
requirements and ongoing obligations
The return from a security or a portfolio in excess of a
Alpha
risk adjusted benchmark return
ATSs Platforms for trading that are not recognised stock exchanges
Certificates issued by a US bank that represents shares
American Depository Receipts
(ADRs) in a foreign stock. These certificates trade on
American stock exchanges
The process of spreading the value of an intangible
Amortisation
asset over its useful economic life time. Moving the
asset from a companies balance sheet to its income
statement
The annual meeting of directors and ordinary shareholders of a
company. All
Annual general meeting companies are obliged to hold one and the shareholders
receive the company's report and accounts, as well as
the opportunity to vote on the appointment of
directors.
The process of deriving a risk free profit by
Arbitrage
simultaneously buying and selling the same same asset
/ 1/8
, 7/1/25, 12:13 AM CISI securities
in different markets where a pricing anomaly exists
System used to issue securities where the successful
Auction
applicants pay the price that they bid
Base currency The currency against which the value of a quoted currency is
expressed
A negative move in a securities market, conventionally
Bear market
defined as a 20%+ decline. The duration of the
decline is irrelevant
bearer securities securities for which possession of a certificate is primary
evidence of ownership
The relationship between the returns on a stock and returns on
Beta the market.
Essentially measures the risk of a security/portfolio in
comparison to the market as a whole
A certificate issued by a government or private
Bonds company which promises to pay back with interest the
money borrowed from the buyer of the certificate. Just
debt basically bro
Where an underwriter determines the price of which
Book-building
shares must be sold at in an IPO
When a company issues extra shares free of charge to
Bonus issue
existing shareholders on a pro rata basis.
Person or firm in the business of buying and selling
Broker-dealer
securities for its own account or on behalf of its
customers
Captives are essentially a form of self-insurance
Captive Insurance
whereby the insurer is owned wholly by the insured.
Have responsibilities for setting a country's short term
Central Bank interest rate, controlling the money supply, acting as a
banker and lender of last resort to the banking system
and managing the national debt
An automated suspension of trading on an exchange
Circuit breaker
when prices move by more than a predetermined
amount
The quoted price of a bond. Excludes accrued interest
Clean price
/ 2/8
