Questions from Financial Markets


Q: What is the difference between pure arbitrage and risk arbitrage? If

What is the difference between pure arbitrage and risk arbitrage? If an investor observes the price of a stock trading in one exchange to be different from its price in another exchange, what form of...

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Q: How do agency transactions differ from principal transactions for market makers?

How do agency transactions differ from principal transactions for market makers?

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Q: Why have brokerage commissions earned by securities firms fallen since 1977?

Why have brokerage commissions earned by securities firms fallen since 1977?

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Q: What three factors accounted for the resurgence in profits for securities firms

What three factors accounted for the resurgence in profits for securities firms from 1991 to 2000?

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Q: What factors contributed to the significant decrease in profits for securities firms

What factors contributed to the significant decrease in profits for securities firms in the early 2000s and the resurgence in profits in the middle of the first decade of the 2000s?

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Q: How did the financial crisis affect the performance of securities firms and

How did the financial crisis affect the performance of securities firms and investment banks?

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Q: What was the largest single asset and largest single liability of securities

What was the largest single asset and largest single liability of securities firms in 2015?

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Q: An investor notices that an ounce of gold is priced at $

An investor notices that an ounce of gold is priced at $1,018 in London and $1,025 in New York. What action could the investor take to try to profit from the price discrepancy? Which of the six tradin...

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Q: An investment bank agrees to underwrite an issue of 15 million shares

An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corp. a. The investment bank underwrites the stock on a firm commitment basis, and agrees to pay $...

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Q: How has the size of the securities firm and investment banking industry

How has the size of the securities firm and investment banking industry changed since the late 1980s?

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