AND OA 200 QUESTIONS 2025 UPDATE
ACTUAL PAPER 2026 COMPLETE
QUESTIONS AND ANSWERS GRADED A+
⩥ Pension Funds. Answer: Large pools of capital collected from
employees for retirement savings, managed to ensure growth and
sustainability of the fund.
⩥ Investment Funds. Answer: Collect money from multiple investors
and pool it together to invest in a diversified portfolio of assets.
⩥ Mutual Funds. Answer: Open-end investment companies that issue
shares to the public and are priced daily based on their net asset value
(NAV).
⩥ Exchange-Traded Funds (ETFs). Answer: Trade on stock exchanges
like individual stocks and can be bought and sold throughout the trading
day.
⩥ Hedge Funds. Answer: Private investment partnerships for accredited
investors that employ diverse strategies to generate high returns, often
with higher risk.
,⩥ Investment Decision. Answer: Made by professional fund managers
on behalf of the investors.
⩥ Diversification. Answer: A benefit of investment funds that allows
investors to spread risk across a range of assets.
⩥ Professional Management. Answer: Management of investment funds
by experts to make informed investment decisions.
⩥ Economies of Scale. Answer: Lower transaction costs achieved by
pooling investments in investment funds.
⩥ Individual Retail Investors. Answer: Use investment funds to achieve
diversification and professional management without needing extensive
financial knowledge.
⩥ Institutional Investors. Answer: Use investment funds to manage large
sums of money efficiently.
⩥ Retirement Plans. Answer: Utilize investment funds to provide
employees with diversified, professionally managed investment options
for long-term growth.
⩥ Hedging. Answer: Using options and futures to protect against price
fluctuations in commodities, stocks, or currencies.
, ⩥ Public Markets. Answer: Involve the buying and selling of securities,
such as stocks and bonds, on organized exchanges where the general
public can participate.
⩥ Private Markets. Answer: Involve transactions of equity, debt, or other
securities that are not publicly traded, typically involving institutional
investors, private equity firms, venture capitalists, and accredited
individual investors.
⩥ Securities and Exchange Commission (SEC). Answer: A regulatory
body that enforces laws to protect investors and maintain orderly
functioning of securities markets.
⩥ New York Stock Exchange (NYSE). Answer: A major public market
known for its strict listing requirements and auction-based trading.
⩥ NASDAQ. Answer: An electronic trading platform recognized for its
focus on technology stocks.
⩥ Liquidity. Answer: The ease with which assets can be bought or sold
in the market without affecting their price.
⩥ Venture Capitalists. Answer: Investors who provide capital to startups
and small businesses with perceived long-term growth potential.