Welcome to your Jargon Buster Quiz. This is a formative learning exercise to ensure you have the foundations to complete JT+ Good luck and do your best! Feel free to use your Jargon Buster Handbook to help you answer the questions. Name Email 1. Over the counter trading refers to transactions conducted: Through SETS On the London Stock Exchange Only in futures markets Away from an exchange None 2. A stablecoin aims to: Deliver high investment returns Track stock market performance Eliminate inflation Maintain a relatively stable value None 3. The Financial Conduct Authority primarily regulates: Prudential capital requirements Taxation Market conduct and consumer protection Monetary policy None 4. An ordinary shareholder typically has: Guaranteed return Priority in insolvency Fixed dividend Voting rights None 5. A Green Bond is primarily issued to finance: Executive bonuses Environmentally beneficial projects Defence spending Share buybacks None 6. An Initial Public Offering is: A new issue of shares A rights issue A bond redemption A secondary market trade None 7. A company unable to pay debts as they fall due is: Illiquid Insolvent Diversified Leveraged None 8. Stamp Duty Land Tax applies primarily to: Property purchases Bond redemptions Dividend payments Share purchases None 9. Tokenisation refers to: Replacing company directors with software Converting ownership rights into digital tokens Issuing government currency Printing physical share certificates None 10. A company gains control of another company when it acquires more than what percentage of voting shares? 75 percent of shares 25 percent of shares 50 percent of shares 100 percent of shares None 11. Higher volatility generally implies: Lower liquidity Greater price uncertainty Guaranteed returns Lower risk None 12. The primary market is concerned with: Clearing derivatives Trading existing shares Collecting taxes Issuing new securities None 13. A pension fund primarily exists to: Trade derivatives Provide short term loans Fund retirement benefits Pay dividends None 14. Diversification primarily aims to: Reduce risk Maximise tax Increase volatility Increase leverage None 15. An incentive often associated with investing in a VCT is: Zero risk Tax relief Fixed dividends Guaranteed capital None 16. Artificial Intelligence (AI) is increasingly used in financial services to: Guarantee investment returns Print physical banknotes Replace all human investment managers Analyse large amounts of data and identify patterns None 17. The balance sheet shows: Share price movements Company profits only Assets, liabilities and equity Dividend history None 18. Market capitalisation is calculated by: Dividend multiplied by earnings Assets minus liabilities Share price multiplied by shares in issue Total company debt None 19. NAV is particularly important for pricing: OEICs and unit trusts Corporate bonds Investment trusts only Derivatives None 20. Quantitative Easing (QE) involves a central bank: Creating money to purchase financial assets Raising taxes Setting dividend policy Selling shares to investors None 21. An investor expecting falling market prices is described as: Bear Long Leveraged Bull None 22. A hedge fund is most likely to: Use aggressive strategies Avoid derivatives Guarantee capital Track an index passively None 23. A tracker fund differs from an ETF because: It cannot hold equities It is always closed-ended It may not trade on an exchange It is unregulated None 24. A dematerialised security is: Government bond Electronic holding Paper certificate Convertible share None 25. Which body sets UK base interest rates? Financial Conduct Authority HM Treasury Prudential Regulation Authority Bank of England via MPC None 26. A nominal share value refers to: Dividend amount Total assets Current market price Face value stated in company constitution None 27. Venture Debt differs from Venture Capital because it is primarily: Equity funding Government support A form of borrowing A type of dividend None 28. An open ended investment fund that expands and contracts with investor demand is Preference Share Closed Ended Fund OEIC Investment Trust None 29. A gilt edged security is: UK government bond Preference share ETF Corporate bond None 30. The term ex dividend means: Buyer will receive next dividend Dividend has been increased Dividend is guaranteed Buyer will not receive next dividend None 31. One potential risk associated with algorithmic trading is: Lower liquidity Guaranteed losses Rapid market volatility Human error only None 32. A privately negotiated derivative contract that is not standardised is most likely: Tracker Fund ETF Future Forward None 33. The difference between nominal value and market price is that nominal value: Fluctuates daily Is face value repaid at maturity Equals dividend Includes accrued interest None 34. A short position involves: Buying shares Receiving dividends Selling shares not owned Holding bonds to maturity None 35. A redemption date refers to: Bond maturity date IPO launch Tax deadline Dividend payment day None 36. Liquidity risk refers to: Falling dividends Borrower default Difficulty selling at a fair price Inflation None 37. The Debt Management Office issues: Shares Gilts Options Corporate bonds None 38. Inflation reduces the real value of: Interest rates Market capitalisation Cash holdings Equity volatility None 39. Impact Investing seeks to generate: Only financial returns Guaranteed returns Financial returns and measurable positive impact Only social benefits None 40. An ETF differs from a unit trust because it: shares traded on an exchange is: Cannot hold equities Is unregulated Trades on an exchange Is closed ended only None 1 out of 1 Thanks for completing the quiz. You will receive your result soon.
