securities firms ii other businesses l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Securities Firms (II): Other Businesses PowerPoint Presentation
Download Presentation
Securities Firms (II): Other Businesses

Loading in 2 Seconds...

play fullscreen
1 / 10

Securities Firms (II): Other Businesses - PowerPoint PPT Presentation


  • 379 Views
  • Uploaded on

Securities Firms (II): Other Businesses Investment Banking Business Brokage Service Investment Banking Investment banks’ major responsibility is to assist in the initial sale of securities in the primary market, namely, underwriting stocks and bonds Include both IPOs and seasoned offers

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Securities Firms (II): Other Businesses' - Gabriel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
securities firms ii other businesses
Securities Firms (II): Other Businesses
  • Investment Banking Business
  • Brokage Service
investment banking
Investment Banking
  • Investment banks’ major responsibility is to assist in the initial sale of securities in the primary market, namely, underwriting stocks and bonds
    • Include both IPOs and seasoned offers
  • Glass-Steagall Act separates commercial banking from investment banking
underwriting stocks and bonds
Underwriting Stocks and Bonds
  • Giving Advice
  • When to offer?
  • At what price?
  • Filing Documents
  • SEC
  • Registration statement
  • Prospectus
  • Underwriting
  • Syndicate
  • Tombstones
  • Marketing Outcomes
  • Fully subscribed
  • Undersubscribed
  • Oversubscribed
  • Best Efforts
other investment banking service
Other Investment Banking Service
  • Private Placement
  • Mergers and Acquisitions
    • Active in this market since 1960s
    • Serves both acquirers and target firms
securities brokers and dealers
Securities Brokers and Dealers
  • Brokerage Service
  • a. Securities Orders
  • Market Order
  • Limit Order – buy with maximum acceptable
  • price and sell with minimum price
  • short sell
  • b. Other Services
  • Margin Credit
  • brokage-based cash management account
  • c. Full-Service Brokers – provide research and investment advice
  • d. Discount Brokers – execute trades on request
  • Securities Dealers
  • Market Makers – increase market liquidity
slide7

Box 1: Using the Limit-Order Book

Unfiled Circuit City Limit Orders

__________________________________

Buy Orders Sell Orders

37 100

37.125 300

37.25 100

37.375 200

37.50 500

37.625 100

Any deal now?

slide8

Orders

1. 200-share market buy order

2. 300-share limit sell order at 37.125

3. 500-share limit buy order at 36.875

The order book is:

slide9

Short-selling – borrow shares

Joel shorts 200 shares of IBM stocks at $50/share. Later on the stock price goes to $40/share. How much profit/loss Joel has made in this transaction?

slide10

Buy-on-margin – borrow money

Amy bought 10,000 shares of IBM stocks at $50/shares with her margin account. The IBM price increases to $60 later. How much profits/losses Amy could make?