Banktionary

An exchange-traded fund (ETF) tracks benchmark indexes like the CAC 40. ETF managers do not have to pick between different stocks; they just follow the index according to its composition. ETFs are traded on the market just like shares.

Each month, a “primary dealer” helps countries renew their debts as they reach maturity. To do this, the Ministry of Finance calls on primary dealer banks whose mission is to find investors interested in buying these debts.

Collateral management is a technique the bank uses to quickly identify what can be committed as collateral so that a transaction can be performed. When a company needs a lot of cash, to pay a supplier for instance, the bank will ask the business to commit part of its equity portfolio as collateral to secure the loan. Thanks to its expertise, the bank can...

A hedge fund is defined as more flexible than most common funds, which are usually benchmarked to an index like the CAC40 and try to outperform it. A hedge fund aims to achieve a stable performance of 10% every year by investing in currencies, bonds and other assets to avoid a loss.

M&A stands for Mergers and Acquisitions. It defines the buyout or the fusion of two companies whose activities are similar. In this case, the bank has a crucial advisory role.

An equity broker works with a team of research analysts who constantly analyze the financial health of listed companies. Clients can base their orders on their financial analysis as sent by their broker. Their broker can also help them with their orders and the terms of execution.

Mutual funds are investment vehicles and a way of pooling investments for people who want to invest in the same kind of product. This fund is managed by a professional fund manager and their team in an asset management company.

Clearing defines how banks and financial institutions guarantee the payment and delivery of securities between two parties to a transaction. When one buys financial products like shares, the order they placed is fixed and final. The clearing house will then handle or unwind the transaction.