Chapter 2 (part 2)

Question 1

What are the 4 departments that make up the structure of a firm?

Answer 1

1. Management
2. Front office
3. Middle office
4. Back office

Question 2

What 5 positions make up a typical Senior management team?

Answer 2

1. Chairman
2. President
3. Executive Vice President
4. Vice President
5. Directors

Question 3

What is the role of front office?

Answer 3

Deals with portfolio management of retail and institutional investors. They try and make profit of trading. Help sell new security issues for institutional investors. Investment Advisors manage portfolios for retail investors.

Question 4

What is the role of middle office?

Answer 4

They make sure the firms products and services comply regulations and deal with audits and accounting.

Question 5

What is the role of back office?

Answer 5

They settle the firms transactions and make sure all purchases and sales are settled correctly.