REVISION

Chapter 1: Jobs in the Finance Sector

8 jobs (an equity trader, a customer advisor in a bank, an insurance broker, an
accountant, an investment banker, an auditor, a company treasurer, an analyst)
- Examples: a bond trader, corporate finance of an investment bank, and
customer service advisor in a retail bank; investment banker, accountant,
bank manager.
An equity trader, share holder (giao dịch cổ phiếu): buy and sale shares on the
stock market
A customer advisor (cố vấn khách hàng): serve customers who come into the
branch to withdraw cash or open accounts
An insurance broker (môi giới bảo hiểm): advise customers the best place to find
insurance for their car or flat
An accountant (kế toán): help companies to prepare accounts and advise on tax
An investment banker (chủ ngân hàng đầu tư): advise companies about mergers,
finance, and raising money from investors
An auditor (kiểm toán viên): investigate company accounts to check if they are true
and accurate
A company treasurer (thủ quỹ): manage the daily cash flow of the company
An analyst (nhà phân tích): analyse companies and sectors and I forecast trends in
the economy

FINANCIAL DECTOR: ACCOUNTANCY, INVESTMENT MANAGEMENT,

BANKING, INSURANCE AND ACTUARIAL
ACCOUNTANCY:
Advisory: providing advice to a company about how to overcome financial
challenges.;
Assurance: reviewing a company’s financial information to reassure shareholders
that their money is being put to good use.
Audit: doing a financial health check on an organization
Tax: advising businesses and individuals about how much tax they need to pay
Corporate finance: making more money for a business through buying and selling
Corporate recovery: ensuring everything goes smoothly – financially speaking –
when businesses fail
Corporate treasury: managing a company’s fund
Financial accounting: analyzing financial information to show how well or badly a
business is doing
Forensic accounting: investigating to find out if fraud has occurred
Management accounting: supplying economic information to help businesses
make financial decisions
risk assessment: identifying and evaluating risks to a client’s business
INVESTMENT MANAGEMENT:
Help their clients, who are typically large institutions and individuals with lots of
money and/or valuable possessions (assets), increase their fortune
Type hedge fund jobs include: Financial analyst, trader, regulatory compliance
officer, quantitative analyst, marketing manager, portfolio manager
BANKING:
Retail banking, investment banking, commercial/ cooperate banking
INSURANCE AND ACTUARIAL
There are two main functions within insurance: underwriting (measuring clients’
exposure to the risk that they want to be insured against and investment) and
investment (the investment side sees the money that insurance companies have left
over, following payouts to clients, invested to grow the pool of cash
Roles in insurance span other areas, including compliance (understanding and
complying with rules) and marketing (developing and issuing information)
 Chapter 2: Personal Finance
Services of personal finance
The activity of managing your own money (as well as saving and investing).

It encompasses: budgeting (lập ngân sách), banking (ngân hàng), insurance (bảo
hiểm), mortgages (thế chấp), investments (sự đầu tư), retirement planning (kế
hoạch nghỉ hưu), tax (thuế), estate planning (kế hoạch bất động sản).
DEBIT CARDS: allow bank customers to spend money by drawing on funds they
have deposited at the bank.
+ deduct money directly from your bank account
CREDIT CARDS: allow consumers to borrow money from the card issuer up to a
certain limit in order to purchase items or withdraw cash.
+ give you access to a line of debt issued by a bank
PERSONAL FINANCIAL SERVICES:
+ PAST: telephone banking, ATM cash point machines
+ PRESENT: online, mobile banking
FAST FINANCIAL SERVICES:
ATM machines or cash points
Electronic payments by bank transfer `
Standing orders to pay regular fixed amounts
Direct debits to allow providers to bill customers directly
Current accounts, deposit/ savings accounts
Overdraft facilities allowing customers to spend more than they have in an account
Credit and debit cards
A cash machine: to take out money from your account
A credit card: to buy things in a store
A home insurance policy: to protect your house against accidents
Direct debit: to pay your bills automatically
A bank loan: to borrow money to buy a car
An online account: to manage all your accounts at home
An overdraft facility: to spend more than you have in your account
A deposit account: to save money and earn interest on it

Chapter 3: Company Financial Services

A finance department and its service providers.
Outsourcing Financial Services: Front Office, Middle Office and Back Office.

IN-HOUSE DEPARTMENTS: TREASURY, FINANCIAL CONTROLLING,

INTERNAL ACCOUNTANTS
TREASURY: which manages cash flow supported by the company’s commercial
bank
FINANCIAL CONTROLLING: which controls the budgets, making sure that
spending is in line with the budget forecasts
INTERNAL ACCOUNTANTS: to put together all the figures and compile the
internal management accounts for managers to make decisions
EXTERNAL PROVIDERS: INVESTMENT BANKS, COMMERCIAL BANKS,
EXTERNAL AUDITOR, ACCOUNTANCY COMPANIES, PENSION FUND
MANAGERS, INSURANCE PROVIDERS.
INVESTMENT BANKS (ngân hàng đầu tư): which give advice on raising capital
from the financial markets and advise on the right mix of funds between shares,
bonds, and loans
COMMERCIAL BANKS (ngân hàng thương mại): which provide company
accounts and systems of payment
EXTERNAL AUDITORS (kiểm toán viên bên ngoài): who check that the figures
are accurate and the accounts comply with accounting standards
ACCOUNTANCY COMPANIES (công ty kế toán): whose advisory departments
advise on tax planning, investment, or restricting
PENSION FUND MANAGERS (nhà quản lý quỹ hưu trí): who make the
investment decisions for the pension funds
INSURANCE PROVIDERS (nhà cung cấp bảo hiểm): who provide protection
against risks

The current global trend is for companies to outsource more and more of these
financial operations. The finance department may well transfer responsibility for
routine activities like paying salaries (the payroll or travel expense accounts to
external specialists either in their own domestic market or offshore to places.
SOME ADV OF OUTSOURCING
COST REDUCTION: not just cheaper salary costs but for example group
discounts in hotel or airline bookings collection of air miles
ELIMINATING REPETITIVE TASKS: allowing managers to focus on their main
responsibilities
Gaining access to SPECIALIZATION, for example, more advanced software
Improving CUSTOMER SERVICE AND QUALITY
Aspect Front office Middle office Back office
Definition The face of the It ensures that the Working behind the
company. It’s where business strategies scenes. It deals with
interactions with and client important tasks that
customers happen. interactions are keep the whole
The front office aligned with the organization
teams directly company’s overall running. While
generate revenue and goals and risk customers don’t
are the first point of parameters usually see this part,
contact a person has its role is crucial for
with a business ensuring that
everything in the
business operates
smoothly
Focus Direct customer Risk management, Administrative,
interaction, sales, strategyol support support services
service
Key roles Sales, customer Compliance, HR, IT, accounting,
service, marketing financial analysis supply chain
Goal Drive sales, customer Make sure business Keep everything
happiness plans are safe and running smoothly
effective
Impact Shapes customer Balances risks with Supports the
experiences, boosts business goals company from the
sales inside

Chapter 4: Banking
Types of bank
Commercial lending
TYPES OF BANK: RETAIL BANKS, A LOAN OFFICER, INTERNET BANK
AND SUPERMARKETS, MUTUAL BUILDING SOCIETIES, INVESTMENT
BANKS, COMMERCIAL BANKS
RETAIL BANKS: is banking that provides financial services to individual
consumers rather than businesses. Retail banking is a way for individual
consumers to manage their money, have access to credit
A LOAN OFFICER: is someone who has extensive knowledge of the various
types of loans that a financial can provide, as well as a complete working
knowledge of the requirements or conditions that are necessary for applicants to
successfully qualify for each type of loan
INTERNET BANKING: is an electronic payment system that enables customers
of the bank or other financial institution to conduct a range of financial transactions
through website
SUPERMARKET BANKS: often in partnership with an established high street
bank. Services offered are usually focused on lending products as well as savings
and deposit account.
MUTUAL BUILDING SOCITIES: the concept of mutual saving, or mutuality
when a group of people pooled their savings to buy land and build houses
INVESTMENT BANKS: which advise on raising the capital from the financial
market and advise the right mix of the funds between shares, fonds, and loans.
COMMERCIAL BANKS: which provide companies account and systems of
payment
An organization chart for a bank
 Chapter 5: Stock Markets
Stock markets- Reading the financial press
ROLES OF STOCK MARKETS: A PLATFORM (TO TRADE SHARES OR
STOCKS), A PLACE (FOR A COMPANY RAISE NEW CAPITAL)
A STOCK INDEX (chỉ số chứng khoán): or stock market index is an index that
measures a stock market, or a subset of the stock market that helps investors
compare current price levels with past prices to calculate market
STOCK MARKETS perform two main functions as a place for companies to raise
new capital by issuing shares:
A PRIMARY LISTING: a place for companies to raise new capital by issuing
shares
A SECONDARY MARKET: a platform for investors to trade shares in
IPO (INITIAL PUBLIC OFFERING): when a company issues shares or lists on a
market for the first time, it comes to the market in a process
INSTITUTIONAL INVESTORS (nhà đầu tư tổ chức): the biggest investors in
today’s stock markets are professionals like pension funds, fund managers of
mutual funds or hedge funds
RETAIL INVESTORS (nhà đầu tư bán lẻ): have an impact on buying and selling
of small companies’ shares.
Investors will be hoping to make two kinds of RETURN (lợi tức) on their
investment:
A return from sharing in the profit a company makes, distributed to them in
DIVIDENDS (cổ tức)
A second return from any increase in the share price when they choose to sell,
known as a CAPITAL GAIN (lãi vốn)
Investors will pay close attention to a number of TECHNICAL INDICATORS (chỉ
số kỹ thuật), for example, THE P/E (PRICE/EARNINGS RATIO) shows the price
of a company’s share in relation to the earnings made by that share
The opinion of stock market brokers who publish regular BROKER’S REPORTS
(nhà môi giới chứng khoán) giving their opinion of the prospects and potential
valuation of a company
VOLUME: the number of shares traded yesterday
DIVIDEND YIELD: the percentage return you can expect to receive each year for
investment in each share
Most recent full-year dividend / Current share price = dividend yield
CURRENT PRICE: the price you must pay for one share today
MARKET CAP: the total value of the company yesterday. MARKET
CAPITALIZATION, commonly called market cap is the market value of a
publicly traded company’s outstanding shares.
SYMBOL: the code you need to look up the shares online
CHANGE ON DAY: if the share price increased or fell yesterday
SECTOR: OIL AND GAS: the area of industry in which the company works
P/E PRICE/EARNINGS RATIO: the relation between the earnings made by the
company on each share and the current price of the shares

52-WEEK HIGH: the highest price paid by investors for a share this year
52-WEEK LOW:
Chapter 6: Company Internal Finance
The cash-flow, cash-flow cycle
Financing the company: short-term, middle-term, long-term
SOURCES OF COMPANY FINANCE: OWNERS (the owner’s capital
exchange for shares), TRADING INCOME (sales’ income for the expenses),
BANKS (short-term overdraft facilities, longer-term loans)
PROBLEMS FOR SMALL START-UP COMPANY:
+ To pay suppliers for raw materials or stocks, and buy equipment.
+ To pay rent for its office
+ To pay salaries to its staff
 + To pay interest to the banks on overdraft or loans
=> A cash-flow forecast
SHORT-TERM FINANCING: to pay suppliers and administration costs may be
financed by extending bank overdrafts, but this is a very expensive and insecure
way to fund the business.
MEDIUM AND LONG-TERM FINANCING: the aim of good financial
management, however, must be to establish long-term stability in the company’s
finances so that it can plan securely for the future

A BOND AND DEBENTURE both are debt instrument issued by the

government or companies.
BONDS DEBENTURES
Bonds are secure in nature Debentures can be secure as well as
unsecured
One can have bonds of a corporation, On the other hand debentures are
 government agencies or it can be of issued by private companies
any financial institution
Bonds are less risky comparatively Whereas debentures are at high risk
Talking about liquidity bonds are at the Whereas in the case of debentures
first priority liquidity
Bonds give you low interest, but it Whereas debentures give you high
depends on the issuing body totally interest

BANK OVERDRAFT (thấu chi ngân hàng): an arrangement with a bank that
allows you to spend more money than you have in your account for a short time to
pay bills or expenses (not a long-term solution)
TRADE CREDIT FINANCE (tài chính tín dụng thương mại): negotiating with
your suppliers to get short-term financing by buying on credit and paying 30/60
days after they deliver the goods? This is a common arrangement if you place
regular orders with a supplier and they trust you
BANK LOANS AND TERM LOANS (vay ngân hàng và vay có kỳ hạn): a
system by which a company borrows money from a bank for an agreed medium or
long-term period and pays interest each year on the debt plus final repayment of
the capital.
PROPERTY AND MACHINERY LEASING (cho thuê tài sản và máy móc): an
arrangement between a company and a bank or specialist finance company in
which the bank buys machinery, cars, trucks for the company and charges the
company a regular fee to use this equipment. This saves you from making big
long-term capital investments.
FACTORING OF SALES INVOICES (bao thanh toán hóa đơn bán hàng): if
your company is owed cash by customers who take a long time to pay you, why
not sell the debts to a bank in exchange for immediate payment? The bank will
charge you a commission fee but it gives you immediate cash
BONDS/DEBENTURES: a larger company can borrow money from the
financial markets by issuing debt or ‘paper’ to the financial markets. It borrows the
money from long-term investors and agrees to repay with interest over a given
period. (long-term)
 MORTGAGES (thế chấp): a system of borrowing in which you take out a loan
by offering the guarantee of some asset, usually a building, as a security. This can
be much cheaper other forms of loan.

Chapter 7: Financial Statements

Balance sheet
Income statement/ Profit and loss account
The cash flow statement
PERFORMANCE OF COMPANY: THE BEGINNING/ STARTING, THE
CENTRAL/MIDDLE, THE ENDING/END
STARTING:
+ Chairman’s statement: a letter to shareholders/ a quick view of the company’s
performance over the last year/ reviewing the different sectors of the business
+ Outlook statement: gives shareholders an idea of prospects for trading in the
future
MIDDLE:
+ Corporate governance: explains the way the company is managed by its board
of directors, how it follows the codes for good governance, not have the force of
company laws but they are recommendations on how a company should be
managed
+ The statement of directors’ responsibilities: the legal responsibilities of the
board in preparing the accounts
+ The independent auditor’s report: the opinion of external auditors on the
accuracy of the published financial figures

A FINANCIAL STATEMENT shows you where a company’s money came

from, where it went and where it is now
 ANNUAL FINANCIAL STATEMENTS: BALANCE SHEET (bảng cân đối kế
toán), STATEMENT OF PROFIT AND LOSS (báo cáo lãi lỗ), CASH FLOW
STATEMENT (báo cáo lưu chuyển tiền tệ), STATEMENT OF CHANGES IN
EQUITY (tuyên bố về những thay đổi về vốn chủ sở hữu), NOTES TO
FINANCIAL STATEMENT (thuyết minh báo cáo tài chính)
A BALANCE SHEET
THE INCOME STATEMENT
 THE CASH FLOW STATEMENT

Chapter 8: Accountancy and Auditing

Documents and billing records
Accounting and auditing
Types of an accountant
The steps of an audit

FINANCIAL ACCOUNTS:
MANAGEMENT ACCOUNTS: are prepared continuously for internal use by the
management to support their decision making and to control operations
STATUTORY ACCOUNTS: are prepared for publication and are sent to
shareholders. They contain the balance sheet, income statement account and a cash
flow statement
TYPES OF ACCOUNTING
1. Bookkeepers: do the boring work – recording transactions in purchase ledgers
and sales ledger
2. Management accountants: use accounting data to make decisions about how the
business should proceed
3. Senior accountants at financial controller and director level: interpret the
transactions recorded by bookkeepers
4. Internal auditing: is about making sure that the management has sufficient
control over what is going on in the company
5. External auditors: have to verify that a company’s published financial statements
give a true and fair view of its profit, its assets and its liabilities

AUDIT
The purpose of an audit is to allow the owners(shareholders) of the company to
check if the managers they appointed to run the company are really giving them a
true picture of the company’s financial position
Define the scope – the auditors make a plan of what they intend to investigate
Carry out substantive tests – to see if assets the company claims to own really exist
Inspect the books and accounts – checking for accuracy and fraud
Write a letter to management – advising on problems uncovered and requesting
solutions
Check internal controls – to see if staff observe the internal rules
Sign off the accounts – if the auditors are satisfied with their audit
â

STOCK: là cổ phiếu không phân biệt công ty nào

SHARE: là cổ phiếu của một công ty cụ thể