What is Due Dilligance?
Through investigation before entering into an agreement or transaction
What is meant in financial terms by SECURITIES?
Tradable financial assewts like stocks and bonds
What is a DERIVATIVE?
Financial contracts whose value DERIVES from an underlying asset
What is meant by a BEAR MARKET
A period of falling stock prices
What is a WATCHLIST in financial terms?
A list of entities being monitored for a potential credit rating change
What is FCA short for? and which country/ies does it regulate?
Financial Conduct Authority (UK)
In fincancial reporting, what are IFRS
International Financial Reporting Standards
What is meant in financial terms by OUTLOOK?
An agency's opinion on the potential direction of a credit rating
In fincancial reporting, what are XBRL
eXtensible Business Reporting Language
What is a RIsk Assessment?
Evaluation of potential risks and their impact
Investment grade
Indicates a low risk of default and high creditworthiness
Default risk
The likelihood that a borrower will fail to repay its debt
What is Risk Mitigation?
Strategies to reduce or eliminate the impact of risks
What is RATING METHODOLOGY?
The process and criteria used by agencies to assign credit ratings
What is FINRA short for?
Financial Industry Regulatory (Notice) Body
What is SEC short for?
Securities and Exchange Commission
What is meant by a BULL MARKET
A period of rising stock prices
Junk Bonds
High risk, high yeild bonds with a lower credit rating
What is a CDO (Collateralised Debt Obligation)
Structured financial products backed by a pool of debt securities
What is meant by DEAFULT RATE?
The percentage of issuers or bonds that dedfault within a specific time
Creditworthiness
A measure of how likely a borrower is to meet its financial obligations
What is meant by MARKET CAPITALISATION?
Total value of a company's outrstanding shares of stock
What is Stress Testing?
Assessing the resiliance of a financial system or entity under adverse conditions
What are Internal Controls?
Processes implimented to ensure compliance and prevent fraud
What does LIQUIDITY refer to?
The ease with which an asset can be brought or sold
What is a BOND?
Debt securities where investors lend money to an entity in exchange for periodic interest payments
Internal Controls
Processes implimented to ensure copliance and prevent fraud
What is ESMA short for?
European Securities and Markets Authority
In fincancial reporting, what are GAAP
Generally Accepted Accounting Principles (U.S)
What is Risk Appetite?
The level of risk an organisation is willing to accept