Investment Banking

A subsidy is nothing but a type of discount offered to a specific section of the public for buying a product or service. For example:

If Walmart declares that it is offering a 10% discount on all electronics items purchases to people who are working for the US Army, this is a subsidy that Walmart offers to a specific section of the public. Subsidies are usually offered by organizations/companies to people working for them or for such national institutions like army, navy, marine corps etc.

The managing underwriters (The investment banks) may underwrite the IPO on either a firm commitment or best efforts basis. In a firm commitment offering, the underwriters will purchase the shares at a discount (of usually 7%) and resell them for the full public offering price to institutional and individual investors. In contrast, a best efforts offering means that the underwriters are only committing their best efforts to sell the shares. Most reputable investment banks will underwrite an IPO on a firm commitment basis. If an IPO is being underwritten on a best efforts basis, it should serve as a warning signal to both the company and its potential investors. After all, how enticing will a company's shares appear if its investment bank is unwilling to shoulder the risk of holding the shares, especially when purchased at a discount?

To help distribute the shares, the managing underwriters may form a syndicate composed of other investment banks. This serves two purposes. First, the underwriters may expand the marketing of the company's shares through other investment banks. Second, the managing underwriters may reduce their risks by allocating shares to other investment banks. The syndicate members may agree to participate by either purchasing and reselling the shares, or just marketing the shares to their institutional and individual clients.

This 7% is how, investment banks make money during an IPO process...

most big banks.

- Securitization changes the basic role of financial intermediaries. Traditionally, financial intermediaries have pooled funds from investors loaned to firms in their place. - Securitization has enabled firms to offer these functions in the form of a security, in which case, the focus shifts to the more essential function i.e. distributing a financial product. (For example, in the above case, the bank, being the earlier intermediary, was eliminated, and instead the services of an investment banker were sought to distribute a debenture issue.) - Securitization seeks to eliminate fund based financial intermediaries for fee based distributors. (In the above example, the bank was a fund based intermediary, a reservoir of funds, whereas the investment banker was a fee based intermediary, a catalyst, a pipeline of funds. Hence, with the increasing trend towards securitization, the role of fee based financial services has been brought into the focus.) - In case of a direct loan, the lending bank was performing several intermediation functions as noted above. It was distributor, in the sense that it raised its own finances from a large number of small investors. It was appraising and assessing the credit risks in extending the corporate loan, and having extended it, it was managing the same. - Securitization splits each of these intermediary functions apart, each to be performed by separate specialized agencies. The distribution function will be performed by the investment bank, appraisal function by a credit rating agency, and management function, possibly by a mutual fund which manages the portfolio of security investments by the investors. Hence, securitization replaces fund based services with several fee based services. This is mainly from http://www.citeman.com/5298-securitization-capital-markets-structured-financial-and-others/

- Portfolio construction (top-down) starts with asset allocation. For example, an individual who currently holds all of this money in a bank account would first decide what proportion of the overall portfolio ought to be moved into stocks, bonds, and so on. - While the average annual return on the common stock of large firms since 1926 has been about 12% per year, the average return on U.S. Treasury bills has been less than 4%. On the other hand, stocks are far riskier, with the annual returns that have ranged as low as -46% and as high as 55%. - In contrast, T-bills are effectively risk-free: we know what interest rate we will earn when we buy them.

- No. An opportunity of making risk free profit would be extremely rare and if there is, that opportunity will disappear (exploited) very quickly. - Therefore, even if that book is true, the chance will not be left for me.

From Regulatory Notice 08-28 - Effective June 23, 2008 the Financial Industry Regulatory Authority ("FINRA") amended its rules to allow a member firm to integrate the responsibility for supervision and compliance of its public customer options business into its overall supervisory and compliance program. As part of these changes, FINRA eliminated the requirement that a firm must designate a specific officer or general partner to serve as the Senior Registered Options Principal (SROP), and a specific individual (who may also be the SROP) to serve as the Compliance Registered Options Principal (CROP). The amendments provide member firms with the flexibility to allow several individuals to fulfill these supervisory functions, in accordance with the firm's overall supervisory structure. FINRA reminds firms of their obligation to designate appropriately registered principal(s) to supervise their public customer options activities pursuant to NASD Rule 3010(a)(2). FINRA Rule 1022 (Categories of Principal Registration) has been amended to delete the reference to the SROP and CROP and clarify that if a person is engaged in the supervision of a member firm's options and security futures business, including a person designated pursuant to NASD Rule 3010(a)(2), then such person must be registered as a Registered Options and Security Futures Principal (ROSFP).

Security markets provide liquidity to companies through shares and corporate bonds. When people buy shares, the companies can use those as capital to expand various ventures.

Yes, The PI and NPV always give the same decisions to accept or reject the projects. The Project's PI will be greater than 1.00 if the NPV is positive and PI will be less than 1.00 if the NPV is negative

i have 50.00 savings bond issued June 1985 how much is it worth

Caibor it's a Cairo inter bANK OFFERED RATE. This is price for borrow a money inter banks on Cairo market. It can be on o/n t/n 1 weeks, 2 weeks etc.

1. Merryl Lynch

2. Morgan Stanley

3. Lehmann Brothers (Once upon a time)

4. JP Morgan Chase

5. etc...

citigroup

simulation enable you to play "what if" game...

If the simulation model suit your market profile you can then insert values to variable to see how the market react.

for instance what if US dollar is dropping... or what if world wide sugar is over produce... etc.

By having some educated guesses on this scenario it should increase the probability your investment to turns into profit.

A leaf refers to a single page or check in one's checkbook. The term leaf is often used for paper than can be torn from a book.

In decision support system (now maturing into business intelligent) user has the ability to construct a table (view, query) with any combination of the existing fields in all database.

The traditional MIS is confined to reports which although customize-able often become a one time design because of it's labour intensive nature.

As illustration, if traditional MIS is ordinary excel table, decision support system is like the excel pivot table.

Capital is the amount of money the bank has as cash reserves to fund their business, write off bad debts etc. the more capital a bank has, the safer its financial situation would be and hence there are lesser risks on part of the bank as well as to its customers.

Technically money is defined as a good or service that can be exchanged for other goods and services. Dollar, apple, gold... etc.

Money is known as M2.

The definition of Credit Union is: a cooperative group that makes loans to its members at low rates if interest. Reference: Random House Webster's College Dictionary.

Nations bank & Bank America merged in 1997 and Bank of America was formed.

In 2004 BOA acquired FleetBoston Financial

In 2005 it acquired MBNA

In 2007 it acquired LaSalle bank & Countrywide Financial

In 2008 it acquired Merryl Lynch

No.

The bank is liable to pay back all our deposit money irrespective of its economic status

Smuggling

Open a fixed deposit. It is safe and at the same time earns you interest at the rate of 8% or more per year