M2 - topic 2 part2 financial institutions Flashcards
what do banks do
receive deposits and approve loans to borrowers
what do investment banks do
provide advice and financial services for businesses. (example: advice on mergers and takeovers)
what do unit trusts do
take funds from a large number of small investors and collectively invest them
what does the Australian securities exchange (ASX) do
act as the main market for the sales of shares in Australia
what do superannuation funds do
invest the contribution of members into investments in order to maximise future returns
what do finance and insurance companies do
provide loans to individuals and business and may specialise in leasing and factoring.
who are the big 4 banks
NAB
Westpac
Commonwealth
ANZ
list two examples of investment banks
macquarie bank
JP Morgan
what services do investment banks offer (3)
raise money for customer
advisory services for corporations/customers
loans
how much of your wage is put into superannuation
9%
what was the purpose of superannuation
to allow people to save money on retirement and require less on the pension
what happens on the primary financial market
business’s sell or float their shares to the public for the first time
where does the money go in a primary market
to the business
what happens on the secondary market
on selling of shares between the general public
do business gain the money from the secondary market
no, money is transferred between buyers and on sellers
