A number of the advisory services investment banks provide for their corporate clients are defined as off-balance-sheet business. One service is placing new issues with institutional investors. Outline the nature of this service and explain why it might be sought after by large corporations
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A number of the advisory services investment banks provide for their corporate clients are defined as off-balance-sheet business. One service is placing new issues with institutional investors. Outline the nature of this service and explain why it might be sought after by large corporations
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- Explain commercial banks’ brokerage and intermediation functions. Clearly detail how these functions help overcome the information costs, liquidity risk and price risk arising from financial investments.Which one of the following statements is TRUE? a. Creditors have a claim on a firm's earning stream through the dividend payments they receive. b. One tool of corporate governance is a company's tax avoidance strategy. c. One tool of corporate governance is stock repurchases. d. One tool of corporate governance is how the company's charter affects the likelihood of a takeover. e. One tool of corporate governance is choosing a good investment banker.Investment banks are involved in the provision of long-term equity and loan finance for industrial and other corporations. Which of the following is one of the features of international investment banks? Answer Provide payment collection services such as payroll and lockboxes Trading of stocks, bonds, and other financial instruments for their own portfolio and on behalf of their clients. Providing credit facilities to corporate customers. Mobilizing international capital flows.
- For the company GSK PLC discuss a recent Investment Bank deal - what was the company, the investment bank, and some interesting points regarding the deal? How do investment banks make profits?Which function of a financial intermediary reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings? Select one: a. Administration of the payments mechanism b. Information production services. c. Money supply management. d. Asset transformation services. e. Brokerage services.How does the financial market facilitate corporate finance and investment management needed?
- Explain why very small to medium-size enterprises (SMEs) might face problems in obtaining appropriate sources of finance. In your answer pay particular attention to problems and issues associated with: Uncertainty concerning the business; Assets available to offer as collateral or security; and Potential sources of finance for very new SMEs excluding sources from capital markets. I need a detailed response to this question.What roles are played by an investment bank and its brokeragefirm during an IPO?In the real world, what are the main challenges that a Finance Manager faces while tryingto run a business entity? Elaborate on the same.
- What is your understanding on private equity, is it financial institution? Explain. If you are a financial advisor, what do you think you can suggest from the management of a company who is suffering from financial distress? Why? Explain.Which of the following roles provide funds to be used by financial managers to finance corporate growth? A. Financial market B. Financial intermediaries C. Investors D. SuppliersExamine the reasons as to why investment banks achieve high levels profits and why large profits cause controversy with the public? Explain.