Mutual funds and Hedge Funds
1. In what ways are securities firms and
financial imemiediaries? (LG 16]) investment banks 10. What are the different types of venture capital films? HOW
V _ _ _ do institutional venture capital firms differ from angel ven-

2. liovt has the size of the securities firm and invesmient bank- ture capital finns? (LG 16-2)
8 mdustry Changed 51999 the late 198087 (LG 16-1) 11. What are the advantages and disadvantages to a new or

3. What are the different finris in the securities industry and mm” firm of getting capital funding from a Venture capital
how do they differ from each other? (LG 16]) firm‘-’ MG 16-2)

4. Contrast the activities of securities finns with depository 12? Whafoislflhe d.‘””’°“°e getweengém ziltggfi
institutions and insurance finns. (LG I6-2) Frag” an mvesmr 0 Sgwes p
in one exchange to be different from its price in another

 

5. What are the key activity areas for securities fimis? How exchange, what {mm of arbitrage is applicable and how
does each activity area assist in the generation of profits and could the investor participate in that arbitrage? (LG I6-2)
Whal 3“? the major risks for each area? (LG ]6’2) 13. How do agency transactions differ from principal transac-

6. Explain the difference between the investing and investment tions for market makers? (LG I6-2)
banking activities P6l’fo1?m3d b)’ Sewmies firms and “”‘e5? 14. Why have brokerage qcommissions earned by securities
ment banks. (LG I6-2) fimis fallen since 1977. (LG I6-2) . r
‘ff f om a private placement? 15. What three factors accounted for the resurgence in pro its

7? l-:00“ a public ofl-ex-mg dl er r for securities firms from 1991 to 2000? (LG I6-3)

f a firm com- 16. What factors contributed to the significant decrease in prof-
8? How does a best emms underwmmg dld:f:rC:)(t)1r1IIl>afl)’ issuing its for securities firms in the early 20oos and the resurgence
miimeiit underwriting? If Y?” °”°””ef underwriting would in profits in the middle of the rirst decade of the 20005?
stock for the mm mm’ which t¥ll:eC(l)loOSC the alternative?