Investment banking activities After the repeal of the Glass-Steagall Act in 1999, depository banks could perform brokerage services and investment banking services, which led to the creation of large financial conglomerates. Along with underwriting and brokerage services, investment banks perform several functions for and among corporations.
The following table describes some investment bank activities. Select the term that best corresponds to each activity.
Activity Term
Investment banks guarantee the sale of IPOs by setting an offer
price and marketing and promoting the IPO.
Investment banks pool securities and use them to back new
securities to sell to investors, thereby increasing the liquidity of the securities.
Investment banks help their clients sell their equity holdings or debt. This
is considered as service provided to their clients.
Option A Choices: matchmaking; underwriting; securitization
Option B choices: trading operations; underwriting; securitization
Option C choices: underwriting; matchmaking; trading operations

True or false: banks are required to make electronically deposited funds available on the same day of the deposit

What are the forecasted levels of the line of credit and special dividends? (hints: create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. also, create a preliminary forecast that doesn’t include any new line of credit or special dividends. identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) now assume that the growth in sales is only 3%. what are the forecasted levels of the line of credit and special dividends?

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?