Tag: CISI ICAWM

CISI Training - Corporate Governance and Its Interpretations

CISI Training: Corporate Governance and Its Interpretation

CISI Training: Corporate Governance and Its Interpretation Relevant to the following CISI qualifications: ICWIM, ICAWM, Risk in Financial Services DEFINITION Corporate governance is the system by which organizations are directed and controlled. The defects of poor corporate governance have recently been very visible in financial institutions around the world. Since the endorsement of Sarbanes–Oxley, companies…

CISI Training Review: Understanding Key Financial Terms and Statements

CISI Training Review: Understanding Key Financial Terms and Statements Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities DEFINITION Publicly traded companies are under an obligation to deliver regular trading updates to the market, ensuring that at all times they present a reasonable reflection of their actual trading performance. However, the terms commonly used in…

CISI Exam Prep: Managing the Time Value of Money

Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities, Risk in Financial Services DEFINITION The time value of money is based on the premise that most people would choose to receive, say, $10,000 now, rather than the same sum in five years’ time. Why? Firstly, because any rational person knows that the $10,000 will almost…

CISI Exam Prep: Hedging Interest Rate Risk

CISI Exam Prep: Hedging Interest Rate Risk – Case Studies and Strategies Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives, ICAWM DEFINITION Risks arise from the way the value of an investment changes with the level of interest rates. This is most clearly seen in the value of fixed-rate investments such as…

CISI Exam Prep: Hedging Foreign Exchange Risk – Case Studies and Strategies

CISI Exam Prep: Hedging Foreign Exchange Risk—Case Studies and Strategies Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives, ICAWM DEFINITION A company that imports raw materials, exports finished goods, or has overseas assets or subsidiaries is exposed to fluctuations in exchange rates. Adverse movements can wipe out export profits, while positive changes…

The Structure and Function of the Foreign Exchange Market (CISI Exam Prep)

The Structure and Function of the Foreign Exchange Market Relevant to the following CISI qualifications: IISI, Securities, Global Securities, ICWIM and ICAWM DEFINITION The foreign exchange market, also known as the forex, FX, or currency market, involves the trading of one currency for another. Prior to 1996 the market was confined to large corporate banks…

CISI Exam Prep: Inflation, Interest Rates & Forex

CISI Exam Prep: Inflation, Interest Rates & Forex The inter-relationship between inflation, interest rates and foreign exchange rates has always been a popular area in CISI exams – with varying difficulty across different levels. The recent turmoil in the Turkish Lira provides an excellent case study that would help students understand how the three pillars…

Solving CISI Exam Questions: Share Capitalisation (bonus) Issues

Share Capitalisation Issues: Ex-scrip price and effects on the Balance Sheet A case study on Emirates NBD   Capitalisation issues, otherwise known as bonus issues or scrip issues, are shares issued by the company to existing shareholders free of charge. Although mostly intended to reward shareholders, bonus issues are an effective way for a company…