Investment Banking: Products And Services Flashcards
What are exchanges?
Public, transparent trading platforms (e.g. LSE)
Example: London Stock Exchange (LSE)
What are dark pools?
Private trading venues for large orders, less transparent.
What is the primary market?
Market for new securities, such as IPOs and bonds.
What is the secondary market?
Market for trading existing securities, like stocks and bonds.
What are exchange-traded securities?
Securities traded on regulated exchanges, offering transparency.
What are OTC (Over-the-counter) trades?
Private deals that typically have less liquidity.
What is algorithmic trading?
Fast, efficient, and emotionless trading method.
Risks include complexity and regulatory issues.
What are the roles of investment banks?
Advisory (M&A), Underwriting (IPOs), Sales & Trading, Prime Brokerage & Custody.
Who are the clients of investment banks?
Corporates (raise capital, M&A help), Institutions (research, execution), Counterparties (execution only).
What are equities?
Higher risk/reward investments that provide dividends and ownership.
What are bonds?
Fixed income securities with lower risk and repayment priority.
What are options in derivatives?
Contracts that give the right to buy (call) or sell (put) at a fixed price.
What are swaps in derivatives?
Contracts to exchange interest rates or currencies.
What are futures/forwards in derivatives?
Contracts to buy/sell assets at a set price in the future.
