Investment Jobs Fundamentals 2

Question 1

What does the term 'buy-side' typically refer to in the investment industry?

Accepted Answer

Firms that manage money and purchase securities, like asset managers and hedge funds

Answer

Banks that issue new stock

Answer

Regulators who approve trades

Answer

Brokers who only sell bonds

Question 2

Which entry-level role is most associated with building financial models and pitch books at an investment bank?

Accepted Answer

Analyst

Answer

Managing Director

Answer

Chief Investment Officer

Answer

Compliance Officer

Question 3

What is the primary purpose of diversification in a portfolio?

Accepted Answer

To reduce unsystematic risk by spreading investments

Answer

To guarantee higher returns

Answer

To eliminate all market risk

Answer

To avoid paying taxes

Question 4

Which regulatory body oversees securities markets in the United States?

Accepted Answer

The SEC

Answer

The FDA

Answer

The FCC

Answer

The EPA

Question 5

What does 'liquidity' describe about an asset?

Accepted Answer

How quickly it can be converted to cash without major price loss

Answer

Its total dollar value

Answer

Its dividend yield

Answer

Its credit rating

Question 6

Which professional designation is widely regarded as a standard for investment analysis careers?

Accepted Answer

CFA (Chartered Financial Analyst)

Answer

CPR

Answer

MBA only

Answer

PMP

Question 7

What is the 'sell-side' in finance?

Accepted Answer

Firms that create, promote, and sell securities, like brokerages and investment banks

Answer

Households that buy index funds

Answer

Government tax authorities

Answer

Insurance claim adjusters