...------------------------------------------------- Chapter 11—Raising Long-Term Financing MULTIPLE CHOICE 1. Which law mandated the separation of investment and commercial banking? a. | Gramm-Leach-Bliley Act | b. | McFadden Act | c. | Glass-Steagall Act | d. | none of the above | ANS: C PTS: 1 DIF: E REF: 11.1 The Basic Choices in Long-Term Financing NAT: Reflective thinking LOC: acquire knowledge of financial markets and interest rates 2. A security offering that raises capital for firms is called a(n) a. | primary security offering | b. | secondary security offering | c. | securitization | d. | all of the above | ANS: A PTS: 1 DIF: E REF: 11.1 The Basic Choices in Long-Term Financing NAT: Reflective thinking LOC: acquire knowledge of financial markets and interest rates 3. A bond sold by foreign corporations to U.S. investors is called a(n) a. | Eurobond | b. | foreign bond | c. | Yankee bond | d. | none of the above | ANS: C PTS: 1 DIF: E REF: 11.1 The Basic Choices in Long-Term Financing NAT: Reflective thinking LOC: understand stocks and bonds 4. A bank that helps firms to acquire external capital is called a a. | commercial bank | b. | savings bank | c. | investment bank | d. | credit union | ANS: C PTS: 1 DIF: E REF: 11.2 Investment Banking and the Public Sale of Securities NAT: Reflective thinking...
Words: 7892 - Pages: 32
...LifeSystem The LifeSystem Suite has been developed over the last 10 years into a highly mature solution, currently supporting more than 20 million life insurance contracts in 36 installations across 16 countries globally. “eBaoTech's LifeSystem helps us to leverage our centre of competence for innovative insurance solutions in Luxembourg in different markets and distribution channels.” Swiss Life www.eBaoTech.com info@eBaoTech.com LifeSystem eBaoTech Product Offerings for Life Insurance Our offering for life insurers consists of our flagship LifeSystem Suite, supplemented by components that can be also installed separately like SalesPlatform, LifeClaims and others. In addition, we also offer specialized product Suites for Group Life and Life Insurance Wrappers based on the same architecture as LifeSystem. “eBaoTech’s SaaS offering based on LifeSystem is very useful for us to execute our vision and strategy especially in the economic conditions that is full of uncertainty and also very competitive insurance market. eBaoTech SaaS definitely will bring WanaArtha Life to different level of customer service where we can offer faster and more convenient service towards our customers. During installing period, the solid cooperation between eBaoTech team from Shanghai-Singapore-Indonesia with our dedicated team is the key of success.” Managing Director, WanaArtha Life End-to-End Suites eBaoTech LifeSystem GroupLife AssetLink Typical Sub-Suite Component Offerings ...
Words: 3009 - Pages: 13
...public offering (IPO), involves many pieces coming together to offer an organization’s shares to public. When high-level issues of financial organization come into play, investment bankers are hired to provide advice (The Princeton Review, 2014). Once investors make the IPO the investment banker acts as a middle man. Their role is to sell the stock to the public while bringing the investors and the firm offering the shares together. “The firm in need of funds approaches the investment bankers to discuss an underwriting (Mayo, 2012, p. 37." Based on the investment banker’s guarantee to sell, an underwriter purchases the securities. This agreement to purchase these securities obligates the underwriter to bear the risks associated with making the promised sales (Mayo, 2012). If the investment banker does not sell the securities, the underwriter is held financially responsible. Originating House and Syndicate With each investment banker comes a brokerage firm. “An underwriting starts with a particular brokerage...
Words: 1107 - Pages: 5
...TRX Inc. (Home Assignment). The Financial Analysts Melissa Gottschall, Jillian Marchand, Scott Duggan, Cary Konopka, Blair MacLaughlin, Jake Baker 1) In general, what attributes make a company a good candidate for an IPO? - Good Business History and Background: Investors will forecast future earnings off of the historical background of the company. It will also show that your company is stable. Many investors will be looking to hold the stock long-term, so if investors trust the background of the company, more people will be willing to invest. - Experienced Management: Good management can ensure that the company will make decisions that are best for the company and to ensure profitability. Also, good management is the basis for growth and performance. Strong management will creates a good public image. - Profitability: A profitable company tells investors that they will actually get a return on their investment. It also shows potential for growth, which can lead to dividends for investors. - Growing Industry: A company can’t grow in a shrinking industry. In a growing industry, the company has better potential to capture a larger portion of market share. - Growing Company: More is better. Investors will reach their maximum utility with a growing company. The objective is to maximize shareholder wealth. A growing company has the best chance of reaching this goal. 2) How does TRX compare on these dimensions? - Good Business History and Background: This...
Words: 1627 - Pages: 7
...Investment banks Services 1. Making an acquisition/ effecting a buyout (mergers and acquisition): With increasing competitive pressures being placed on businesses and the trend towards globalization, companies are engaging more and more in M&A activity. Many companies looking to expand or streamline their business will use investment banks for advice on potential targets and/or buyers. This normally will include a full valuation and recommended tactics. The investment bank's role in mergers and acquisitions falls into one of either two buckets: seller representation or buyer representation (also called "target representation" and "acquirer representation"). One of the main roles of investment banking in mergers and acquisitions is to establish fair value for the companies involved in the transaction. Investment banks are experts at calculating what a business is worth. They are also able to predict how that worth could be altered (i.e., what happens to the value of a company in a number of different scenarios and what those potential futures would mean financially). Financial models are constructed by investment banks to capture the most important fixed and variable financial components that could influence the overall value of a company. Investment banks do not just rely on buyers and sellers approaching them. They will also source deals by studying the market themselves and approaching companies with their own strategic ideas (i.e., they might suggest that two...
Words: 1665 - Pages: 7
...Royal University of Law and Economics Case Study 26 “JetBlue Airways IPO Valuation” Lecturer: Kou Lim Hong Prepared By: 1. Ms. Khoun Davy 2. Ms. Khoun Dalin 3. Ms. Chiem Sothana 4. Mr. Soksithika 5. Mr. Oag Sothearith 6. Mr. Mov Vandara MFM, Group 2 team 6 2011-2012 Outline of The Presentation I. II. Introduction of Case Study Main Problem III. Literature Review IV. Case analysis V. Conclusion Outline of The Presentation I. II. Introduction of Case Study Main Problem III. Literature Review IV. Case analysis V. Conclusion Introduction of Case Study JetBlue Airway Background JetBlue airways are a low cost airline established in July 1999 by David Neeleman. David Neeleman was experienced in the operations of airline and start up airlines. The airline was to provide new levels of service in the airline travel industry, concentrating on customer service and low fares. Introduction of Case Study JetBlue Airway Background David Neeleman plan was to commit to innovation in people, policies and technology to keep the companies planes full and thus the company profitable. To ensure this goal and the company’s future David Neeleman assembled and impressive management team and group of investors. JetBlue’s COO was to be David Barger ex-vice president of Continental Airlines. John Owen who was executive vice-president and treasurer of Southwest Airlines agreed to become JetBlue’s CFO. Introduction of Case Study JetBlue Airway Background David...
Words: 982 - Pages: 4
...Chapter 19 Issuing Securities to the Public 1. The Public Issue:The basic procedure for a new issueI. Obtain approval from the board of directors.II. The firm must prepare and file a registration statement with the SEC. Registration statement : A carefully prepared set of documents, including aprospectus, which is filed with theSECprior to aninitial public offering.III. The SEC studies the registration statement during a waiting period . Duringthis time, the firm may distribute copies of a preliminary prospectus.A registration statement will become effective on the 20 th day after its filing unlessthe SEC sends a letter of comment suggesting changes. After the changes are made,the 20-day waiting period anew. preliminary prospectus The initial document published by anunderwriterof anew issueof stock to be givento prospective investors. It is understood that the document will be modifiedsignificantly before thefinal prospectusis published.also called red herring. prospectus A legal documentoffering securitiesormutual fund sharesfor sale, required by theSecurities Act of 1933. It must explain theoffer, including theterms,issuer,objectives(if mutual fund) or planned use of the money (if securities),historical financial statements, and other information that could help an individual decidewhether theinvestmentis appropriate for him/her.also calledoffering circular orcircular. waiting period The period after a company'sprospectushas been...
Words: 1146 - Pages: 5
...VAULT CAREER GUIDE TO INVESTM E NT BAN KING 2008 EDITION is made possible through the generous support of the following sponsors: Customized for: Triston Francis (tfran@wharton.upenn.edu) SEO Online Career Library The media’s watching Vault! Here’s a sampling of our coverage. “For those hoping to climb the ladder of success, [Vault’s] insights are priceless.” – Money magazine “The best place on the web to prepare for a job search.” – Fortune “[Vault guides] make for excellent starting points for job hunters and should be purchased by academic libraries for their career sections [and] university career centers.” – Library Journal “The granddaddy of worker sites.” – U.S. News & World Report “A killer app.” – New York Times Customized for: Triston Francis (tfran@wharton.upenn.edu) SEO Online Career Library One of Forbes’ 33 “Favorite Sites” – Forbes “To get the unvarnished scoop, check out Vault.” – SmartMoney Magazine “Vault has a wealth of information about major employers and jobsearching strategies as well as comments from workers about their experiences at specific companies.” – The Washington Post “A key reference for those who want to know what it takes to get hired by a law firm and what to expect once they get there.” – New York Law Journal “Vault [provides] the skinny on working conditions at all kinds of companies from current and former employees.” – USA Today Customized for: Triston Francis (tfran@wharton.upenn.edu) SEO Online Career Library ...
Words: 68989 - Pages: 276
...Underwriting in Health Insurance Module 5- Submission 10/22/2014 Health Insurance Management Group 3 Underwriting in Health Insurance Table of Contents Brief History of underwriting .................................................................................................................... 2 Definition of underwriting ......................................................................................................................... 2 What does underwriting entails? ............................................................................................................... 2 Underwriting in health insurance .............................................................................................................. 2 Underwriter and its qualities ..................................................................................................................... 3 The sources of information ....................................................................................................................... 3 Underwriting Process ................................................................................................................................. 4 The challenges faced in underwriting ....................................................................................................... 5 Importance of Underwriting ...................................................................................................................... 6 Examples...
Words: 3172 - Pages: 13
...Like all study, this report has also certain limitations which were in some cases unavoidable. In the end we have concluded with a short discussion of overall analysis. Table of Content Content | Page Number | Introduction | 4 | Methodology of the Study | 4 | Analysis | 5 | Conclusion | 9 | Bibliography | 10 | Introduction | Initial public offering (IPO), also referred to simply as a "public offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately owned companies looking to become publicly traded. In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue...
Words: 2250 - Pages: 9
...Chapter: 1 Introduction 1. Introduction As mandatory requirement of the Bachelor of the Business Administration (BBA) program under Eastern University, this report entitled – “Business Strategy”, a study on Fareast Islamic Life Insurance Co. Ltd. Insurance is a growing business in Bangladesh and has more and more scope to develop the economy of Bangladesh. In this report, we have tried our best to introduce the company and show their background, company policies, financial condition, performance and various analyses. 1.2 Objectives of the Study The report is the part of the Insurance sector that we are studying in our BBA course. The objective of the report is to present the practical view about the “Insurance Practices in Bangladesh”, that provides facility to the ends of the Individuals and to transform our modern social order. 3. Scope of the Study The scope of this report is limited to overall description of the company, its services and its financial performance analysis. The scope of the study is limited to organizational setup, functions and performance. Since FILIC is still its growth stage in Bangladesh; it has go to long way to achieve its destination. The report will mainly focus on what criteria FILIC maintaining before insuring and their claim settlement process. The will also emphasize on the financial ratios. 1.4 Methodology of the Study Selected Subject Matter We have...
Words: 5704 - Pages: 23
...Table Of Contents Declaration ............................................................................................ Acknowledgement ..................................................................................... Preface ....................................................................................................... Table of contents ....................................................................................... Company Profile ........................................................................................ Chapter: Introduction Purpose ............................................................................................. Scope ............................................................................................. Limitation............................................................................................ Research methodology....................................................................... Chapter: Findings ............................................................................................. Suggestions ............................................................................................. Annexure ................................................................................................. Refrence and Biblography ...................................................................... Company Profile: ...
Words: 4456 - Pages: 18
...PREFACE In today’s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and SBI LIFE INSURANCE has given me the opportunity to work and get experience in highly competitive and enhancing sector. This job training also helped me a lot in understanding the process and the challenges faced in building effective distribution channels for life insurance products by establishing network of life insurance advisors or tied agency channel. Table Of Contents Declaration ............................................................................................ Acknowledgement ..................................................................................... Preface ....................................................................................................... Table of contents ....................................................................................... Company Profile ........................................................................................ Chapter: Introduction Purpose ............................................................................................. Scope ..............................................
Words: 4566 - Pages: 19
...Mashell Chapeyama Personal Finance Importance of Personal Insurance Keywords: characteristics of life insurance, health insurance Insurance is essential for personal and national development. On personal basis insurance is important for the following reasons: It gives people a sense of security. People who have insurance look forward to be assisted in case of a problem. For example if one’s property, which are insured are destroyed by fire, the insurance firm replaces them. So there is protection on uncertainties. Linked to this is that there is a cover up in case of certain problems that may require money. Insurance may also be a good source of credit. Some insurance companies may give credits to their clients, since there is collateral already. Some insurance ensures that the families remain viable even after some problems may have occurred. An example is when a bread winner has died. If the bread winner had life insurance the family may still have something to live on. People may only face the grief of the loving one dying without being worried of financial incapacitation. Insurance may be a very good solution in case of some social problems. An example could be a breadwinner has been injured. If the insurance covers for injuries that person can still survive Insurance reduce the fear which people may have. People are afraid of the future. They may foresee bleak futures. Insurance assists in reducing such fear. There is also transfer of the personal risk to the...
Words: 452 - Pages: 2
...Week 6 Course Project MIS535 Managerial Applications of Information Technology The goal is to add value to current clients as well as prospects. In addition, the company wants to get busy families and business owners to agree to set appointment in order to meet with a financial service professional. Lastly, the company wants people to utilize its Information Systems. New York Life Insurance Company was founded in 1845. The headquarters are in New York City. New York Life Insurance Company is a Fortune 100 company and one of the oldest and largest mutual life companies in the United States. The company maintains operations in all 50 states and also services areas in Asia and Latin America. The company has over 60,000 licensed insurance agents and over 17,000 non-licensed employees. New York Life also holds the highest possible ratings for financial strength. This is based on the life insurance industry’s four principal ratings agencies. With the industries sales growth being around 12% in 2010, New York Life Insurance Company had an increase in sales that was 39% over 2009. The biggest thing about being in the insurance business is sales. As long as New York Life Insurance Company is compliant with the regulations, the company can be creative in building the business to be a dominant force in the industry. By solving the problem, agents will be able to collaborate with managing partners. This will allow the rest of team to be able to revisit appointments that...
Words: 725 - Pages: 3