LOMA 357: MODULE 1 VERIFIED STUDY GUIDE
Institutional Investor - Answers - Any organization devoted to holding financial assets
and trading securities in a large volume.
Traders - Answers - Employees responsible for executing purchases and sales of
publicly traded securities under instruction from portfolio managers.
Portfolio Managers - Answers - Employees with broad authority and accountability for
fulfilling the mission and objectives of an investment portfolio.
Asset-Liability Managers - Answers - Employees who monitor the company's assets
supporting a specified product line, investment cash inflows/outflows, etc. They ensure
there are sufficient funds and assets on hands at all times.
Investment Risk Management Professionals - Answers - Employees who focus on
measuring and identifying relevant risks, statistical analysis of risk, economy capital
calculations, setting investment diversification criteria, and setting investment policy.
Investment Analysts - Answers - Employees who monitor issuers of securities and make
buy-hold-sell recommendations as to future trading activity.
Front-Office Operations - Answers - All investment administration operations that deal
directly with the securities marketplace, trade negotiations, and trading securities.
Middle-Office Operations - Answers - All investment administration operations that
support trades such as investment forecasting, regulatory compliance, risk
management, and portfolio performance reporting.
Back-Office Operations - Answers - All investment administration operations that tie into
official company roles, such as investment accounting, reporting, IT, HR, etc.
Equity Security - Answers - An ownership interest in a business.
Debt Security - Answers - An obligation of indebtedness owned by a business,
government, or agency.
Fixed Income Investments - Answers - Investments that typically provide a predictable
stream of income (bonds, mortgages).
Equity Investments - Answers - Investments that represent ownership of assets
(common stock, real estate, commodities).
Institutional Investor - Answers - Any organization devoted to holding financial assets
and trading securities in a large volume.
Traders - Answers - Employees responsible for executing purchases and sales of
publicly traded securities under instruction from portfolio managers.
Portfolio Managers - Answers - Employees with broad authority and accountability for
fulfilling the mission and objectives of an investment portfolio.
Asset-Liability Managers - Answers - Employees who monitor the company's assets
supporting a specified product line, investment cash inflows/outflows, etc. They ensure
there are sufficient funds and assets on hands at all times.
Investment Risk Management Professionals - Answers - Employees who focus on
measuring and identifying relevant risks, statistical analysis of risk, economy capital
calculations, setting investment diversification criteria, and setting investment policy.
Investment Analysts - Answers - Employees who monitor issuers of securities and make
buy-hold-sell recommendations as to future trading activity.
Front-Office Operations - Answers - All investment administration operations that deal
directly with the securities marketplace, trade negotiations, and trading securities.
Middle-Office Operations - Answers - All investment administration operations that
support trades such as investment forecasting, regulatory compliance, risk
management, and portfolio performance reporting.
Back-Office Operations - Answers - All investment administration operations that tie into
official company roles, such as investment accounting, reporting, IT, HR, etc.
Equity Security - Answers - An ownership interest in a business.
Debt Security - Answers - An obligation of indebtedness owned by a business,
government, or agency.
Fixed Income Investments - Answers - Investments that typically provide a predictable
stream of income (bonds, mortgages).
Equity Investments - Answers - Investments that represent ownership of assets
(common stock, real estate, commodities).
