CISI test questions with correct answers

What is the minimum age that the benefits may be taken from a pension scheme? - Answer 55 What are the key feature of unit trusts and OEICs? - Answer Their valuation is directly linked to the value of the assets What two documents are needed to form a company? - Answer Articles of Association, Memorandum of Association How is the share price of an investment trust determined? - Answer A combination of the value of the underlying assets and supply and demand How do you calculate flat yield? - Answer Annual coupon/bond price X 100 A bonus issue made to shareholders is an example of which type of corporate action? - Answer Mandatory How does a private investor purchase investment trust shares in the secondary market? - Answer Through a stockbroker or financial intermediary Private equity firms are usually set up as what type of company? - Answer Limited partnerships What are short-term securities issued by commercial banks in exchange or fixed-term deposits called? - Answer Certificates of deposit