Concepts
Name 2 economic agents
companies
government
people
This institution helps the users of financial services in cases of frauds, errors, undesired advertising, etc.
CONDUSEF
How are the instruments traded in this segment named?
negotiable values
FPO (follow-on public offering)
This institution is about to complete 100 years of existence in the financial system in Mexico.
Banxico
How many Comissions integrate the 2nd level of the financial system in Mexico?
3 (CNBV; CONSAR & CNSF)
This governmental security in Mexico doesn´t pay interest.
CETE
This market does not involve directly the companies in the trading of their securities
secondary market
What distinguishes a share (or, stock) from a bond?
that it entitles ownership claim and doesn´t pay interest
Name 3 types of businesses that require information about our credit behaviour from the Credit Bureau.
departamental stores
financial institutions
automotive companies
issuers of credit cards
Two key characteristics of the MM in Mexico will be....?
low risk
low volatility
high liquidity
relatively low return
When we integrate securities with specific characteristics on a Stock market, we create a(n) ........?
Stock exchange Index
Which is the difference between liquidity and maturity of a security?
Liquidity refers to the easiness of converting it into cash w/o losing value, meanwhile maturity refers to its expiration date or period.
Explain 2 functions of the financial system in Mexico.
Transfers resources
Manages risks
Provides information
Concentrates resources
If we purchased a security for $98.50 and sold it for its nominal value of $100, how much did we gain percentage wise?
1.52% (which results from (100-98.5)/98.5))
Which are the major differences (3) between a common and preferred stock?
-voting rights (the 2nd doesn´t contain them)
-order of dividends´ payments
-order of proceedings in cases of bankruptcy