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Chapter 4 FINA 365
Terms in this set (28)
Which of the following is most typical of broker-dealers
They assist in trading of existing securities
Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
Underwriting issues of new securities.
Which of the following differentiates securities firms from investment banks?
Securities firms assist in trading of existing securities while investment banks specialize in underwriting new securities.
Which of the following is true of private placement of securities?
Securities are placed with few large institutional investors
The function of institutional venture capital firms is to
find and fund the most promising new firms.
A corporate venture capital firm
is a subsidiary of a nonfinancial corporation.
The largest category of assets for broker-dealers as of the beginning of 2012 was
securities purchased under agreement to resell
The largest category of liabilities of broker-dealers as of the beginning of 2012 was
securities sold under repurchase agreements
Creating a secondary market in an asset by a securities firm involves the function of
Participation in the activities relating to the underwriting and distribution of new issues of debt and equity by a securities firm involves the function of
Soft dollars is a term often used in reference to the portion of a fee or commission that is allocated to
research and other advisory services.
Program trading involves
computer-driven buying or selling of baskets of 15 or more stocks by institutional traders.
The U.S.A. Patriot Act requires financial services firms to
All of the above.
The Securities Investor Protection Corporation (SIPC) protects investors against losses of up to ____ on securities firm failures.
Identify a major reason behind the increase in domestic underwriting activity during the 1990s.
growth in asset-backed securities
Which of the following is true about reverse repurchase agreements?
They are securities purchased under agreement to resell
Which of the following is NOT a back-office service function in the securities industry?
Correspondent banking services.
An attempt by a market maker to earn a profit on the price movements of securities by taking inventory positions for its own account is called
a principal transaction
By 2012, there were approximately ________ securities firms and investment banks operating.
B and C
The management of pools of assets by securities firms is considered to be the function of
Offering bank deposit-like accounts to individual customers by a securities firm involves
The function of cash-management
Securities firms have equity ratios that are lower than those for commercial banks because their balance sheets contain a larger portion of
The most common benchmark of relative size of a firm in the securities trading and underwriting industry is based on
Which of the following is NOT a key activity of Securities firms and Investment banks?
Which of the following types of underwriting agreement places more risk on the Investment banker?
Which of the following is NOT a provision of Sarbanes-Oxley Act?
Required investment analysts' compensation to be a function of the quality and accuracy of research they produce.
Considering the securities firms and investment banking industries, The National Securities Markets Improvement Act (NSMIA) of 1996
effectively affirmed the SEC as the primary regulator of the industry.
OTHER SETS BY THIS CREATOR
Chapter 5 FINA 365
Chapter 3 FINA 365
Chapter 2 FINA 365
Chapter 1 FINA 365