MBA 622 EXAM STUDY GUIDE
Passive management - Answers -Manage portfolio without identifying mis-priced
Active Management - Answers -attempting to identify mispriced securities or to forecast
broad market trends
primary market - Answers -market where new issued stocks to be offered to the public
secondary market - Answers -Market for previously issued stocks are traded among
investors
venture capital - Answers -money invested to finance a new firm
Private Equity - Answers -investments in companies that are not traded on a stock
exchange
Money Markets - Answers -Cash & Bank Notes
Certificate of Deposits
Treasury Bills
Commercial Paper
Certificate of Deposit - Answers -a certificate issued by a bank to a person depositing
money for a specified length of time.
commercial paper - Answers -short-term unsecured debt issued by large corporations
Banker's Acceptance - Answers -an order to a bank by a customer to pay a sum of
money at a future date
Repurchase Agreements - Answers -short-term sales of government securities with an
agreement to repurchase the securities at a higher price
Capital Markets - Answers -Primary: Fixed Income (Bonds) & Equity (Stocks)
Derivative: Options, contracts
Dow Jones Industrial Average - Answers -a measure based on the prices of the stocks
of 30 large companies, widely used as a barometer of the stock market's health. But it is
kind of useless
S&P 500 - Answers -market index of U.S. equities based on the performance of top
500 large-cap stocks. It use the market value weighted method
Russell 1000 - Answers -Measures stock of 1,000 biggest companies
Passive management - Answers -Manage portfolio without identifying mis-priced
Active Management - Answers -attempting to identify mispriced securities or to forecast
broad market trends
primary market - Answers -market where new issued stocks to be offered to the public
secondary market - Answers -Market for previously issued stocks are traded among
investors
venture capital - Answers -money invested to finance a new firm
Private Equity - Answers -investments in companies that are not traded on a stock
exchange
Money Markets - Answers -Cash & Bank Notes
Certificate of Deposits
Treasury Bills
Commercial Paper
Certificate of Deposit - Answers -a certificate issued by a bank to a person depositing
money for a specified length of time.
commercial paper - Answers -short-term unsecured debt issued by large corporations
Banker's Acceptance - Answers -an order to a bank by a customer to pay a sum of
money at a future date
Repurchase Agreements - Answers -short-term sales of government securities with an
agreement to repurchase the securities at a higher price
Capital Markets - Answers -Primary: Fixed Income (Bonds) & Equity (Stocks)
Derivative: Options, contracts
Dow Jones Industrial Average - Answers -a measure based on the prices of the stocks
of 30 large companies, widely used as a barometer of the stock market's health. But it is
kind of useless
S&P 500 - Answers -market index of U.S. equities based on the performance of top
500 large-cap stocks. It use the market value weighted method
Russell 1000 - Answers -Measures stock of 1,000 biggest companies