Practice Test Geeks(FIA) Financial Information Associate Certification Practice Test
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FIA Investment Banking & Capital Markets Flashcards

6 cards from real FIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 FIA Investment Banking & Capital Markets flashcards as text

  1. What is the primary role of an investment bank's underwriting function?

    Answer: Helping companies issue securities and guaranteeing the sale of those securities to the public

    In underwriting, an investment bank helps a company issue stocks or bonds and typically guarantees the sale by purchasing any unsold securities itself.

  2. What does IPO stand for in the context of capital markets?

    Answer: Initial Public Offering

    An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time on a stock exchange.

  3. In investment banking, what is a 'tombstone advertisement'?

    Answer: An announcement published in financial media to publicize a completed securities offering

    A tombstone advertisement is a formal notice published after a securities deal closes, listing the issuer, the offering details, and the investment banks involved.

  4. What is the difference between the 'primary market' and 'secondary market' in capital markets?

    Answer: The primary market is where new securities are issued; the secondary market is where existing securities are traded between investors

    The primary market is where companies raise capital by issuing new securities, while the secondary market is where investors buy and sell previously issued securities among themselves.

  5. What is a 'road show' in the context of an IPO?

    Answer: A tour by investment bankers to market a new securities offering to potential institutional investors

    A road show is a series of presentations by company management and investment bankers to potential institutional investors ahead of an IPO or bond offering.

  6. What does 'book building' refer to in the securities issuance process?

    Answer: The process of gathering investor demand indications to set the final offering price

    Book building is the process by which underwriters collect and record investor interest (bids) during the marketing phase to determine the final price and allocation of a new securities offering.

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