Institutional Client Overview Quiz

Individuals or firms that act on behalf of their clients to buy and sell securities.

Individuals or firms that create liquidity in the market by quoting bid and ask prices for securities.

The institutions and individuals that invest money on behalf of others.

The individuals and firms that sell securities to the buy side.

A group of securities that are bundled together and offered to investors.

A firm that manages investments for institutional clients like pension funds, endowments, and large trusts.

Investment managers may offer their services through different channels to suit various institutional investors. These channels include pooled funds, segregated accounts, and limited partnerships.

Firms that buy and sell securities for their own account or on behalf of clients. They represent the seller's side of the market but can also be a buyer in some situations.

The ability for institutional clients to directly access electronic trading platforms provided by investment dealers, allowing for faster and cheaper trading.

Before direct electronic access, institutional investors placed orders manually through registered investment dealers. This involved communication between portfolio managers and sales staff, creating a chain of relationships.

A list of financial products a trader wants to buy or sell quickly. It helps them act fast on market opportunities.

The buy-side trader's goal is to get the best possible price for a portfolio manager's trades, benefiting the portfolio's overall performance.

Buy-side traders contact several brokers to compare prices, aiming for the best deal. This is common in volatile or illiquid markets.

Factors like strong relationships with traders, speed of execution, research quality, and access to market experts are essential for a buy-side trader's success.

Transaction Cost Analysis (TCA) considers both explicit costs, like trading fees, and implicit costs, like price differences, when choosing a broker.

Equity trading services provided to institutional clients by a team of specialists. Services include executing trades, managing trading capital, and facilitating transactions.

A complex trading strategy using computers to simultaneously execute multiple orders involving both stocks and derivatives. It seeks to capitalize on temporary price discrepancies between a group of stocks and their associated index.

A specialized field dealing with the creation of customized financial products for institutional investors. These products combine unique risk and reward profiles and often utilize principles of program trading.

These are contracts that give the holder the right but not the obligation to buy or sell a specific underlying asset at a predetermined price on or before a specific date.

These are standardized contracts for the future purchase or sale of an asset at a predetermined price on a specific date.