Glossary - CISI Introduction to Securities and Investment questions with correct answers

Annual General Meeting (AGM) - Answer Yearly meeting or shareholder. Mainly used to vote on dividends, appoint directors and approve financial statements. Approved Persons - Answer Employees in controlled functions, who must be approved by the regulator. Articles of Association - Answer The legal document which set out the internal constitution of a company. Will include details of shareholding voting Reigate & company borrowing powers Authorised Corporate Director (ACD) - Answer Fund Manager of an OEIC Balance of Payments - Answer A summary of all the transactions between a country and the rest of the world Bid Price - Answer Price at which dealers buy stock. It is also the price quoted by unit trusts that are dual-priced for sales of units. Bonus Issue - Answer A free issue of shares to existing shareholders. No money is paid. The share price falls pro rata. Also known as a capitalisation or scrip issue. Call Option - Answer Option giving its buyer the right to buy an asset at an agreed price. Convertible Bond - Answer A bond that is convertible