Investment and Commercial Banking
New Securities
Trading Securities
Private Equity
Miscellaneous
100
This law required the separation of investment and commercial bank activities.
What is the Glass-Steagall Act?
100
This is another name for an initial public offering (IPO).
What is an unseasoned offering?
100
A dealer in securities makes its profits off of this, the difference between its buying price and selling price.
What is the bid-ask spread?
100
This is one of the 2 types of private equity, and often involves a large company purchasing a small start-up.
What is Venture Capital Private Equity?
100
This is the term used to describe when a investment bank acts as a dealer
What is a market maker?
200
This non-U.S. system of banking combines the features of investment and commercial banking.
What is a universal banking system?
200
This is the finished draft describing a new security that is submitted to the SEC.
What is a final prospectus?
200
Most securities are registered under the broker's this.
What is street name?
200
This verb means that an investors commitments were invested by the private equity firm.
What is drawn down?
200
This is when an investment bank sells securities to a hedge fund in order for them to short it.
What is Prime broker?
300
This event led to the Banking Act of 1933.
What is the Crash of 1929?
300
This is the term for a group of investment banks that guarantee they will buy new securities from an issuer.
What is an underwriting syndicate?
300
This is what is said to be done when an investor buys securities partly with borrowed money.
What is margin trading?
300
This private equity fee is a percentage of the investment's profits.
What is carried interest?
300
When an issuer sells securities, this term means soliciting offers from different investment banking firms
What is competitive bidding?
400
This law allowed commercial banks and investment banks to operate as affiliates under the same corporate umbrella.
What is Financial Services Modernization Act?
400
A firm or individual must be accredited investors in order to qualify for this.
What is a private placement exemption?
400
This kind of broker merely executes customers' orders without offering investment advice.
What is a discount broker?
400
In the limited partnership of a private equity fund, the firm is this type of partner - meaning that they receive more the risk in investing.
What is a general partner?
400
This term is a new equity issue by an already publicly traded company
What is a seasoned offering?
500
This was an early name for investment banks.
What are private banks?
500
This is the type of offering in which the issuer, not the underwriter, assumes the risk.
What is a best-efforts offering?
500
This is what it is called when an investment bank uses its own capital to make bets.
What is proprietary trading?
500
There is a type of private equity that starts as a public corporation. And when this investment is made with borrowed money, it is called this.
What is a leveraged buyout?
500
This is when an Investment bank buys and sells a security simultaneously in order to make profit off the difference in spread.
What is arbitrage?
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