Matching Type (Financial Institutions-Participation):

Answer 1

Insurance companies

Answer 2

Commercial banks

Answer 3

Stock-owned savings institutions

Answer4

Pension funds

Answer5

Savings banks

Answer6

Securities Firms

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Issue stock to boost their capital base

Invest a large proportion of their premiums in the stock market

Invest a large proportion of pension fund contributions in the stock market

Manage trust funds that usually contain stocks

Invest in stocks for their investment portfolios

Execute buy and sell stock transactions of investors

: Matching Type (Terms-Definition):

Answer 1

Fundamental Analysis

Answer2

Capital Asset Pricing Model

Answer 3

Technical Analysis

Answer4

January Effect

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Relies on fundamental financial characteristics of the firm and its corresponding industry that are expected to influence stock values.

It used to estimate the required rate of return for any firm with publicly traded stock.

Relies on stock price trends to determine stock values.

Many portfolio managers are evaluated over the calendar year, they prefer investing in riskier, small stocks at the beginning of the year and then shifting to a larger, more stable companies near the end of the year in order to lock in their gains.