Page 85 - CAPE Financial Services Syllabus Macmillan_Neat

WORDS/TERMS DEFINITIONS/MEANINGS
Organized Exchanges
(physical exchange) Trades securities via a broker registered on an exchange. This takes place
Over-the-Counter in a face-to-face setting, in some central location. For example, New
Exchange (OTC) York Stock Exchange (NYSE), GASCI.

Pharming A market trades securities directly between investors. The transactions
are usually done with the buyers and sellers being in different locations.
Phishing For example, National Association of Securities Dealers Automated
Quotation Systems (NASDAQ), BMEX.
Placement of Funds
Policy Statement (attack vectors/ medium available to cyber criminals). An attack to
Portfolio redirect a website’s traffic to a different, fake website, where the
Portfolio Management individuals’ information is then compromised. See ‘social engineering’
below.
Proceeds of Crime
Profitability (attack vectors/ medium available to cyber criminals). An attempt to
acquire users’ information by masquerading as a legitimate entity.
Rate of Inflation Examples include spoof emails and websites. See ‘social engineering’
Rate of Return below.
Ratio Analysis
This is the movement of cash from its illegal source into banking system.

Formal document outlining the ways in which an organisation intends to
conduct its affairs and act in specific circumstances.

An investment which is made up of a group of individual assets (or
securities) held in combination.

This is the art and science of making decisions about investment mix and
policy, matching investments to objectives, asset allocation for
individuals and institutions and balancing risk against performance.

Funds or money received from illegal activities.

This is the ability of a business to earn a profit. A profit is what remains
of the revenue a business generates after it pays all expenses directly
related to the generation of the revenue.

It refers to the general increase in prices. It is measured using the
Consumer Price Index (CPI).

Increase / decrease in value of an investment over a specified period of
time.

It is a quantitative analysis of information contained in a company’s
financial statements. It is based on line items in financial statements
such as the balance sheet, income statement and cash flow statement.
It is used to evaluate various aspects of a company’s operating and
financial performance such as its efficiency (asset management),
liquidity, profitability and solvency.

CXC A38/U2/16 80