Stock Market Analysis and Personal Finance

Mr. Bernstein

Investment Banks

May 23, 2013

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Stock Market Analysis & Personal Finance Mr. Bernstein

Investment Banks vs Commercial BanksDo not participate in the function of collecting depositsInstead, IBs borrow money in the bond and note markets

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Stock Market Analysis & Personal Finance Mr. Bernstein

Investment Banks: Primary FunctionsAssist corporations and government agencies raise funds through

large sales of securitiesProvide strategic advice to corporations and government agencies on

possible mergers, acquisitions or other financial transactionsAct as counterparty to money managers and other clients in

transactionsAct as broker/dealer to execute transactions for clientsInvest or trade their own capital in a wide range of financial market

instrumentsMany possible conflicts of interest must be managed so earn the

trust of clients, regulators and and the marketplace

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Stock Market Analysis & Personal Finance Mr. Bernstein

Investment Banks: CultureGenerally have very innovative cultures as their

ventures and processes are not eligible for patent protection and are quickly copied

Many possible conflicts of interest must be managed to earn the trust of clients, regulators and and the marketplace