Exam 4: Financial Services: Securities Brokerage and Investment Banking

Securities firms have equity ratios that are lower than those for commercial banks because their balance sheets contain a larger portion of

The Financial Services Modernization Act of 1999 allowed investment banks and securities firms to offer deposit accounts to individuals.

When conducting a firm commitment offering, the investment bank is acting as an agent on behalf of the issuing company or government.

National full-line investment and securities firms

Boutique investment banks specialize in originating, underwriting, and distributing issues of new securities.

Which of the following is NOT considered a trading activity of securities firms?

The primary function of the Security Investor Protection Corporation (SIPC) is to

Full-line firms such as Bank of America Merrill Lynch are generally called bulge-bracket investment banks.

If the investment bank were able to sell all 10 million shares for $12.75 per share, how much money does Rochester Industries receive?

The most common benchmark of relative size of a firm in the securities trading and underwriting industry is based on

Considering the securities firms and investment banking industries, The National Securities Markets Improvement Act (NSMIA) of 1996

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

In a public offering of a new security, an investment banker places a new issue of securities with a handful of private, usually large, investors.

Venture capital firms often make loans to finance new and often high-risk companies that may have no business history.

By 2015, there were approximately ________ securities firms and investment banks operating.

Which of the following is a self-regulatory organization involved in the day-to-day regulation of trading practices?

The objective of the investing function of securities firms (funds management) is to allocate assets so that they outperform relative risk-return performance benchmark.

Discount brokers are stockbrokers that conduct trades for customers but do not offer investment advice.

A securities issue placed with one or a few large institutional investors is called an IPO.

An angel venture capitalist is likely to be a wealthy individual that makes equity investments in unsuccessful, bankrupt firms.