Which of the following is a financial investment that represents a loan made to a private business? O Becca's Bakery purchases mortgage backed securities. Becca's Bakery gets an investor from the show Shark Tank. Becca's Bakery issues new bonds that they sell to the public. O Becca's Bakery issues stock and sells shares to investors.
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- Which of the following statements is CORRECT? A. Capital market instruments include both mortgages and U.S. Treasury bonds. B. An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift. C. The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically. D. While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.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 securityFor the company GSK PLC discuss a recent Investment Bank deal - what was the company, the investment bank, and some interesting points regarding the deal? How do investment banks make profits?
- discuss the main problems sole trader's encounter in a bid to raise finance on kenya’s financial marketsWhat are the pros and cons of U.S. savings bonds? What are some of the problems that individuals might face if they use one of the “problematic” financial institutions? What are some of the consumer protections available? What can individuals do to protect themselves? What are some of the advantages and disadvantages of choosing a federally-insured account? What are some considerations in choosing a financial institution?please explain mortgage back securities and subprime loan and how lehman brother holdings used these to create revenue. was it ethical?
- What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the business?One example of financial intermediation is the selling of mortgages by banks to a third party. If you borrow money from the Bank of America to buy a house, the bank immediately sells your mortgage to a third party like Fannie Mae. This transaction gives Bank of America the cash to make another mortgage. Fannie then holds your loan along with millions of others they have bought, and they use the loans as assets to serve as collateral, so they can borrow money in the financial markets to buy more loans from Bank of America and other lenders. What is the impact of all this activity on the cost and availability of mortgages? What if any pitfalls do you see in the process? On balance, is it good or bad for society? Why?Which of the following statements is NOT true? About half of all corporate debt is sold through the private placement market. Private placement occurs when a firm sells unregistered securities directly to investors such as insurance companies, commercial banks, or wealthy individuals. Investment banks and money center banks often assist firms with private placements. In private placements, there are no restrictions on the resale of the securities.
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