Lecture 1

Question 1

What are the largest Global Financial institutions

Answer 1

Asset Managers and banks

Question 2

Describe Buy and Sell side and give examples of each

Answer 2

Buy Side makes money by investing (pension, PE, Asset Managers)while sell side makes money by selling services (Banks, insurance companies

Question 3

Name the services banks typically offer (5)

Answer 3

Retail, Commercial, Corporate Banking, Investment Banking, Asset/Wealth management, and Other (risk, insurance etc.)

Question 4

How are investment Bnks Structured

Answer 4

Industry Groups following broad industries or product groups which include M&A, Restructuring, ECM, DCM

Question 5

What do Financial Systems do

Answer 5

Transfer funds in the most oficent manner possible and includes mechanisms for issuing and selling new securities. Includes fund suppliers, who then deposit to financial intermediaries, which then give out loans to demanders. Direct financing skips that intermediary step

Question 6

Explain why financial inimideraties are important

Answer 6

Serve as a intermediating between lenders and borrowrs. Helps speed up the process because its all in a centralized place