Lecture 10 - Investment Banking Flashcards

1
Q

What are some products on the primary side of Investment Banking

A

M&A, DCM, ECM, restructuring

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2
Q

What are some products on the secondary market

A

Research, Sales and trading

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3
Q

How are Investment Banks broken up, and give examples

A

By industry which is then broem up into dub catagories . Diversified, healthcare, etc

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4
Q

Explain the glass Steagall Act

A

Seperated the CB and IB in the US
FOrced CB forced to move to lower risk underwriting areas
IB firms were prohibited from egnaging in CB

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5
Q

What were they key objective of the Glass Steagall Act

A

Discourage speculation
prevent Conflict
restore Confidence in the systme

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6
Q

What was the Gramm Leach Biley Act

A

It repalced the XXX act in 1999. It allowed CB IB and insurance under the same

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7
Q

Explain the Emergency Econnomic Stabilization Act of 2008

A

Gave the gouverment permission to increase supply credit. AKA build America Bonds helped stimulate the municiapl secotr `

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8
Q

WHat are some Capital Raising services of IB and give 2 examples

A

Brinign New Securitires to Makret -Public Offering and Provate Placement

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9
Q

How do you bring a new security to market and explain each

A

Origination - Design of the security contract
Underwriting - IB buys the security
Sales and distribution

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10
Q

Best Efforts offer vs Underwritten offer

A

Does not gurantee a price of that the securities will be sold. More risk to the firm
- Underwritten offer IB guratees the isser a certain price

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11
Q

What is a private palcement

A

Underwriting is skipped nd it is sold direcly to the ultimate investor

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12
Q

When is restructuring most active

A

This tends to be most active during times of economic downturns

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