18 Questions
Why did Goldman Sachs stop trading Gold?
Gold was not manageable for them
What change in the industry drove most of the changes in Investment Banking?
Changes in regulations
What characteristic differentiated private equity firms before 2007?
They were valued differently
Which Investment Bank had restrictions on acting as advisors?
JP Morgan
What drove the evolution of Investment Banking according to the text?
Changes in regulations
What type of banks are JP Morgan and Citigroup described as in the text?
Commercial banks
What is the historical definition of Investment Banking?
Providing support to customers in raising funds in capital markets
In the world of Capital Markets, the relationship in Investment Banking is typically described as:
One-to-many
Which of the following services is NOT typically offered by Investment Banks?
Insurance policy sales
What are some characteristics important for an investment banker?
Valuation skills, Access to clients, and Technology knowledge
How did the text describe the origin of Investment Banking?
Tied to primary markets
Which term is NOT correctly paired with its corresponding type of financial instrument in the text?
Derivatives - DCM
What was the main reason behind some companies in the 1960s transitioning to become advisors in the field of Investment Banking?
They lacked the required financial strength for underwriting activities
Which segment is NOT typically included in the modern definition of Investment Banking?
Retail Banking Services
What was a key factor that facilitated the transition of Investment Banking from a strict definition to a broader one?
Approval from regulators favoring financial conglomerates
Which service offered by Investment Banks involves providing guidance at every stage of a company's life?
Mergers and Acquisitions (M&A) Advisory
During which period did the focus of Investment Banking shift towards Risk Management activities?
1980s - 1990s
What aspect differentiated companies that transitioned to advisory roles in Investment Banking during the 1960s from others?
Skill set without financial strength requirement
Explore the evolution of underwriting practices from a strict definition to a broader one, including segments such as trading, market making, asset management, and advisory services in the financial sector.
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