e investment banker does all of the following except a. make long-term investments for banking institutions b. advise clients c. bear the risk of selling a security issue d. act as a middleman between the issuer and buyer of a new security
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The investment banker does all of the following except a. make long-term investments for banking institutions b. advise clients c. bear the risk of selling a security issue d. act as a middleman between the issuer and buyer of a new security
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- Identify an investment bank of your choice and explain (a) the type of bank it is and (b) the various conflicts of interest that its activities may involve. Include in your answer examples of deals to illustrate the conflicts you identify.Which statement is not correct? A. The main objective (role) of financial intermediaries is to convert savings of SSU’s into investments. B. Financial intermediaries purchase financial claims with a set of characteristics from DSU’s and sell financial claims with characteristics tailored to the desires of the SSU’s. C. Financial intermediaries normally absorb the risks from SSU’s and manage the risks by investing the funds received from SSU’s into various securities. D. Financial intermediaries serve solely as intermediaries with the financial markets and never serve as investors. E. none of the aboveChoose the best answer Underwriting an issue is the domain of: a. commercial bank b.the central bank c.the stock exchange d.an investment bank
- Which of the following is true ? Select one : a . Investment bankers earn a spread based on the success of their placements when they underwrite using a best - efforts basis. b . Investment bankers earn fees based on the success of their placement when they underwrite using firm - commitment basis. c . With best - efforts underwriting, Investment bankers actos principais because they purchase securities from the issuer and sell them at a higher price, d. An investment banker is acting as principais when a firm - commitment offering of securities . e . Answers B and C only .(a) Distinguish between the activities of retail and investment banks and discuss howthis has an impact on their approaches to risk management. (b) Explain liquidity risk and credit risk faced by banks and discuss how banks managethese risksIn the context of a security company , evaluate options for the financing of business activities. You are required to include in your evaluation the characteristics of the different sources of finance.
- (a) List any five types or forms of securities acceptable to banks. b) Land is generally accepted by banks as security. (i) State the procedure a bank must take to perfect land as security. (ii) How can land used as security can be realized by the bank?Which of the following is NOT a purpose of valuing financial securities? a. Valuation is used to provide sensible financial decisions.b. Valuation is used to get the intrinsic value of a financial security.c. Valuation is helpful for investors in order to determine whether to buy or sell their securitiesd. Valuation is used to predict the exact prices of financial securities.“Loans and Advances” is the highest income generating asset where as “Cash” is the most liquid asset, yet banks invest heavily in “Securities”. Justify thesentence. Explain a Structured Note using an example. As a potential investor would you prefer to invest in a structured note? Why or why not?
- Which of the following is a financial instrument? Select one: a. Merchant bankers b. Leasing Companies c. All the options d. Bonds e. Mutual Fund CompaniesAnswer true or false 1..Your personality should be considered in making an investment 2. An investors financial position will also affect his or her objectives. 3. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturity.What is the primary motivation of investors in performing security analysis? A-identify the best times to buy and sell securities B-Contribute to the efficiency of securities markets C-Identify securities whose insrinsic values are at or near their market values D-Identify mispriced stocks