Chapter 5: Insurance Companies and Securities Firms and Investment Banks Flashcards
In life insurance premiums, they guarantee that the insurer pays a sum of money to your
beneficiaries such as cousins, nephews, and niece.
Insurance Company
_______________ is a way to protect yourself from financial risks by paying a company a small amount of money, called a _____________
Insurance; Premium
WHY IS INSURANCE IMPORTANT?
- Provides a safety-net for people
- Financial security
- Peace of mind
- Provides economic growth
Examples of Insurance Companies
- Sun Life of Canada (Philippines) Inc.
- Manu life Health Insurance
- Pru Life Insurance
Securities firms, also known as _______________
brokerage firms or investment firms
facilitate the buying and selling of f inancial securities on behalf of investors.
Securities Firms
play a vital role in financial markets, providing access, liquidity, advice, and innovation essential for investors and businesses.
Securities Firms
serve as essential intermediaries for various stakeholders in navigating financial markets and achieving their investment objectives.
Securities Firms
facilitate trading, provide investment advice, raise capital, manage assets, conduct research, ensure compliance, and serve client needs.
Securities Firms
TYPES OF SECURITIES FIRM
- Full-Service Brokerage
- Discount Brokerage
- Robo-Advisors
- Independent Brokerage
- Captive Brokerage
It provides a variety of goods and services, such as financial consultation, tax advice, estate planning, and money management.
Full-Service Brokerage
Full-Service Brokerage also known as.
traditional brokerages
It is a type of brokerage firm that offers trading services to clients at a lower cost compared to traditional brokerages firm.
Discount Brokerage
It is an online financial service that automates the process of implementing trading strategies for its clients by using algorithms
Robo-Advisors
It is a type of brokerage firm that operates independently.
Independent Brokerage
It is controlled or owned by an insurance company.
Captive Brokerage
Helping businesses raise funds through stock and bond issuance.
Capital Formation
Offering diverse investment options for investors.
Investment Opportunities
Providing platforms and services for buying and selling securities.
Trading Facilitation
Ensuring liquidity by quoting prices and facilitating transactions.
Market Making
Providing insights and advice to investors.
Research and Analysis
Offering hedging strategies and risk management solutions.
Risk Management
Ensuring adherence to regulations and protecting investors.
Regulatory Compliance
examples of Securities Firms
- RCBC Securities, Inc.
- BDO Securities Corporation
- First Metro Securities
- Col Financial
is a financial institution that provides a variety of services, mostly to governments, corporations, and institutional investors.
Investment bank
These services usually consist of asset management, securities trading, mergers and acquisitions (M&A) advisory, and capital raising.
Investment bank
serve as a middleman between businesses in need of capital and investors looking for places to put their money to work.
Investment bank
play a crucial role in the financial system by acting as intermediaries between those who need capital and those who have capital to invest.
Investment bank
Investment banks act as bridges between companies seeking capital and potential investors
Capital Raising
Their expertise includes valuation of both entities, negotiation of deal terms, and ensuring compliance with legal and regulatory requirements.
Mergers & Acquisitions Advisory (M&A)
Investment banks offer a wealth of financial expertise to their clients.
Financial Advisory
is a highly skilled professional who operates within the financial sector, serving as a key intermediary in complex financial transactions.
Investment Banker
They connect companies or governments with potential investors, structuring deals that benefit both parties.
Deal maker
They leverage their financial expertise to analyze a company’s finances, identify opportunities and risks, and recommend strategic financial decision.
Strategic Advisory
In the event of your death, what kind of insurance protects your family financially?
Life Insurance
What kind of business offers insurance plans to assume risks in exchange for premium payments?
Insurance Companies
Private insurance firms are owned by
Shareholders
A company owned by a group of policyholders is known as
Mutual Company
Certain costs related to illness, injury, pregnancy, or preventative care are covered by this contract.
Health Insurance
Coverage for liability in times of accidents on the property is one of the benefits of what kind of insurance?
Home Insurance/ homeowners insurance
True or False
Home insurance premiums covers unexpected damages including floods and earthquakes
False
True or False
In life insurance premiums, they guarantee that the insurer pays a sum of money to your beneficiaries such as cousins, nephews and niece
False
True or False
Auto insurance premiums does not cover the payment of your vehicle if vandalized or get damaged by a natural disaster
False
True or False
Insurance is an organization that designs policies to assume risks in exchange for premium payments
True
True or False
It gives you financial security against unforeseen costs as well as protection against sickness, accidents, and other events.
True
True or False
It is not possible for an insurance company to experience bankruptcy due to its sufficient funds.
False
The minimum deposit required in First Metro Securities?
1,000
True or False
Discount Brokerage offers trading services to clients at a higher cost.
False
True or False
Securities Firm is a financial institution that provides a variety of services, mostly to governments, corporations, and institutional investors.
False
True or False
Independent Brokerage is not associated with an insurance company.
True
True or False
Investment Opportunities offers diverse investment options for investors.
True
True or False
Securities firms facilitate the buying and selling of financial securities on behalf of investors.
True
True or False
When a certain security is to be bought or sold, the broker will find a match to its offer, if there is no match, then the client will hold it until the broker finds a match
True
A core service of investment banks where they offer a wealth of financial expertise to
their clients.
Financial Advisory
True or False
Investment banks offer a wealth of financial expertise to their clients.
True
True or False
Investment banks serve as intermediaries between users of capital and providers of capital
True
True or False
An investment banker acts as a middleman between a corporation needing funds and investors with funds.
True
True or False
When a company first goes public, a registration statement must be filled with the New York Stock Exchange.
False
True or False
Deal maker is when they leverage their financial expertise to analyze a company’s finances, identify opportunities and risks, and recommend strategic financial decisions.
False
What is it called when securities firms facilitate transactions and maintain a balanced supply and demand for securities to ensure smooth and orderly trading?
Market making
