Securities Firms and Investment Banks
Securities Firms and Investment Banks (IBs)
Investment banks (IBs) help corporations and governments raise capital through debt and equity security issues in the primary market
Underwriting is assisting in issuing new securities
IBs also advise on mergers and acquisitions (M&As) and corporate restructuring
Securities firms assist in the trading of securities in secondary markets
Broker-dealers assist in the trading of existing securities
2
Investment bankers assist borrowers in raising capital in debt and equity markets and provide advice about mergers and acquisitions, corporate restructuring and general assistance in finance. Bankers also provide many creative over the counter derivative products. Securities firms provide brokerage and market making services. The investment banking and securities industries are complementary and many firms provide a broad range of services. Some specialized entities with advantages in certain market niches remain less diversified. The industry underwent tremendous consolidation in the last decade due to increasing scale and scope economies and the need for greater capital. The face of the industry was changed forever during the financial crisis of 2007-2008 with forced buyouts of Merrill-Lynch and Bear-Stearns, failure of Lehman Brothers and Goldman-Sachs and Morgan Stanley becoming commercial banks. Nevertheless, working for many of these firms is often considered the penultimate finance career, with prestige and remuneration to match. With industry profits down, firms on the Street are having a difficult time maintaining their large salaries and bonuses. A very significant portion of profits are paid out in the form of remuneration to executives. The chapter presents an overview of the size of the industry and the general strategies of the participants, major activities, primary assets and liabilities on the balance sheet, recent in the news events concerning breaches of ethics and the trend toward globalization.
Size, Structure and Composition of Industry
The size of the industry is usually measured by the equity capital of firms rather than total asset size
Equity capital in the industry in 2015 was $235 billion
The number of firms in the industry changed due to economies of scale and scope, losses with the economy, scandals at some firms, and regulations that allowed both inter- and intra-industry mergers
5,248 firms in 1980
9,515 firms in 1987
6,016 firms in 2006
4,115 firms in 2016
As with commercial banks, consolidation has largely occurred through mergers and acquisitions
.
VENTURE CAPITAL
Overview of the Venture-Capital Industry
Types of Venture capital firms
Venture-Capital Process
Stages In Venture Financing
Locating Venture Capitalists
Activities of Venture Capitalists
Approaching a Venture Capitalist
Mercer Capital's Investment Management Industry Newsletter | Q2 2022 | Segmen...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
During the last 15 years more than $800 billion dollars has been contributed to index funds. At Selective we believe there are many limitations to these products and don't truly capture the heart of investing - business ownership. To learn more go through the presentation. If you would like more content like this visit us at www.selectivewm.com or contact us at info@selectivewm.com
Ahead of the marcus evans Private Wealth Management Summit 2022, read here an interview with John Van Clief on the investment opportunities in the alternatives space, and what makes companies innovative and recession-resistant.
VENTURE CAPITAL
Overview of the Venture-Capital Industry
Types of Venture capital firms
Venture-Capital Process
Stages In Venture Financing
Locating Venture Capitalists
Activities of Venture Capitalists
Approaching a Venture Capitalist
Mercer Capital's Investment Management Industry Newsletter | Q2 2022 | Segmen...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
During the last 15 years more than $800 billion dollars has been contributed to index funds. At Selective we believe there are many limitations to these products and don't truly capture the heart of investing - business ownership. To learn more go through the presentation. If you would like more content like this visit us at www.selectivewm.com or contact us at info@selectivewm.com
Ahead of the marcus evans Private Wealth Management Summit 2022, read here an interview with John Van Clief on the investment opportunities in the alternatives space, and what makes companies innovative and recession-resistant.
• A virtual account meaning
• What is Investment companies
• Types of investment companies
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Aftermarket Support: How to Create a Liquid Public Stockkeatingcapital
Public companies can enjoy many benefits, particularly significantly higher
valuations and superior access to capital, compared to privately owned
businesses. These benefits are conditional on the existence of a “liquid” market
for the company’s shares. Illiquidity can prevent the stock of a smaller public
issuer from achieving the higher valuations enjoyed by its peers, thereby negating
one of the primary benefits of being public. The goal of any publicly traded
company, therefore, should be to have its stock become widely held, actively
traded, fully valued, and covered by at least one research analyst. But what
exactly do these things mean? This white paper creates a framework for
objectively defining and quantifying these terms and outlines a path to the holy
grail of liquidity.
Managing Big Data: A Big Problem for BrokeragesBroadridge
Reliable mutual fund invoicing and analysis has been challenging the industry for years due to the regulatory environment and other factors, and in this report we explore key concerns, current approaches, and the way forward. Based on in-depth interviews with financial services executives, this paper uncovered the significance of a data management and analytical challenge facing brokerages, which has led to lost revenue, increased compliance and reputational risk, and lost sales opportunities.
Mercer Capital's Investment Management Industry Newsletter | Q4 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
America is in the grips of a speculative frenzy. Investment .docxgreg1eden90113
A
merica is in the grips of a speculative frenzy. Investment bankers, private investment firms, and even a few dozen recently graduated
MBAs labelling themselves “searchers” are calling, emailing, wining, and dining small business owners. Their goal is to translate prosaic
small businesses into the poetry of private equity.
The great postcrisis private equity gold rush is on, fueled by cheap debt and enthusiastic investors. A lawn care chain might get half a dozen calls
and emails a week from business brokers and “searchers.” A regional bank auctioning off a business with $15 million in profits might pitch two
hundred prospects, receive fifty letters of intent, and take twelve separate private equity firms to management meetings, ending in a sale price
which the majority of bidders considers crazy. And the greatest prize of all—a software company—could sell for many multiples of revenue,
regardless of profitability.
As with the mortgage-backed securities bubble, experts are the promoters and pioneers of an “asset class” that they claim will offer high returns
with low risk, guided by the sage wisdom of elite managers. The legendary leader of Yale University’s endowment, David Swensen, has gone so far
as to call private equity a “superior form of capitalism.”
The experts agree with Swensen. A recent survey of institutional investors found that 49 percent expect private equity (PE) to outperform the
public equity market by a whopping 4 percent per year or more. Another 45 percent believe PE will outperform by 2–4 percent per year. Only 6
percent think returns will be comparable. The survey did not even bother to ask if investors thought PE might underperform. This is particularly
shocking given that data from Cambridge Associates shows that private equity returns have lagged the Russell 2000 index by 1 percent and the
S&P 500 by 1.5 percent per year over the past five years.
This consensus has led institutional investors to flood private markets with capital, about $200 billion per year of new commitments. The result is
soaring prices for private companies of all shapes and sizes. Just before the financial crisis, in 2007, the average purchase price for a PE deal was
8.9x EBITDA (earnings before interest, taxes, depreciation, and amortization—a commonly used measure of cash profitability). Deal prices reached
8.9x again in 2013 and are now up to nearly 11x EBITDA.
But asset prices are going up everywhere. What makes private equity dangerous is the use of debt—and the use of phony accounting to conceal the
riskiness of these leveraged bets. The average PE deal is 65 percent debt financed, and whereas the valuations of public equities are determined by
transparent, liquid public markets, PE firms determine the valuations of their own portfolio companies. Unsurprisingly, they report far lower
volatility than public markets.
This appraisal accounting also encourages lenders to take risks. After the financial crisis, the Fede.
Select 2 particular media forum types from the following listNews.docxjeffreye3
Select 2 particular media forum types from the following list:
Newspapers
Radio
Television
Internet
Address the following in 1,000–1,250 words:
What specific roles do both media forums that you chose have in exposing the various aspects of a political process? Explain in detail.
How persuasive are these media forums in terms of influencing the public about a politician or a campaign issue? Explain.
How significant a role have both media forums played in providing you with information relating to corruption in government? Provide 2-3 specific examples of information on government corruption that you have received from the media.
Discuss whether the information you’ve received from the media on government corruption has changed your opinion of a particular government official, government office, or political process, be it federal, state or local.
Provide 2–3 examples of media influence with regard to politics and democracy.
Describe and explain the specifics of each example.
.
Select 1 of the datasets.Set up a frequency table.docxjeffreye3
Select
1 of the datasets:
.
Set up
a frequency table with names for variables and
run
the frequency analysis.
Using the same dataset you selected for the Frequency Data Runs assignment,
develop
a histogram, pie chart, line graph, and bar graph.
.
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Aftermarket Support: How to Create a Liquid Public Stockkeatingcapital
Public companies can enjoy many benefits, particularly significantly higher
valuations and superior access to capital, compared to privately owned
businesses. These benefits are conditional on the existence of a “liquid” market
for the company’s shares. Illiquidity can prevent the stock of a smaller public
issuer from achieving the higher valuations enjoyed by its peers, thereby negating
one of the primary benefits of being public. The goal of any publicly traded
company, therefore, should be to have its stock become widely held, actively
traded, fully valued, and covered by at least one research analyst. But what
exactly do these things mean? This white paper creates a framework for
objectively defining and quantifying these terms and outlines a path to the holy
grail of liquidity.
Managing Big Data: A Big Problem for BrokeragesBroadridge
Reliable mutual fund invoicing and analysis has been challenging the industry for years due to the regulatory environment and other factors, and in this report we explore key concerns, current approaches, and the way forward. Based on in-depth interviews with financial services executives, this paper uncovered the significance of a data management and analytical challenge facing brokerages, which has led to lost revenue, increased compliance and reputational risk, and lost sales opportunities.
Mercer Capital's Investment Management Industry Newsletter | Q4 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
America is in the grips of a speculative frenzy. Investment .docxgreg1eden90113
A
merica is in the grips of a speculative frenzy. Investment bankers, private investment firms, and even a few dozen recently graduated
MBAs labelling themselves “searchers” are calling, emailing, wining, and dining small business owners. Their goal is to translate prosaic
small businesses into the poetry of private equity.
The great postcrisis private equity gold rush is on, fueled by cheap debt and enthusiastic investors. A lawn care chain might get half a dozen calls
and emails a week from business brokers and “searchers.” A regional bank auctioning off a business with $15 million in profits might pitch two
hundred prospects, receive fifty letters of intent, and take twelve separate private equity firms to management meetings, ending in a sale price
which the majority of bidders considers crazy. And the greatest prize of all—a software company—could sell for many multiples of revenue,
regardless of profitability.
As with the mortgage-backed securities bubble, experts are the promoters and pioneers of an “asset class” that they claim will offer high returns
with low risk, guided by the sage wisdom of elite managers. The legendary leader of Yale University’s endowment, David Swensen, has gone so far
as to call private equity a “superior form of capitalism.”
The experts agree with Swensen. A recent survey of institutional investors found that 49 percent expect private equity (PE) to outperform the
public equity market by a whopping 4 percent per year or more. Another 45 percent believe PE will outperform by 2–4 percent per year. Only 6
percent think returns will be comparable. The survey did not even bother to ask if investors thought PE might underperform. This is particularly
shocking given that data from Cambridge Associates shows that private equity returns have lagged the Russell 2000 index by 1 percent and the
S&P 500 by 1.5 percent per year over the past five years.
This consensus has led institutional investors to flood private markets with capital, about $200 billion per year of new commitments. The result is
soaring prices for private companies of all shapes and sizes. Just before the financial crisis, in 2007, the average purchase price for a PE deal was
8.9x EBITDA (earnings before interest, taxes, depreciation, and amortization—a commonly used measure of cash profitability). Deal prices reached
8.9x again in 2013 and are now up to nearly 11x EBITDA.
But asset prices are going up everywhere. What makes private equity dangerous is the use of debt—and the use of phony accounting to conceal the
riskiness of these leveraged bets. The average PE deal is 65 percent debt financed, and whereas the valuations of public equities are determined by
transparent, liquid public markets, PE firms determine the valuations of their own portfolio companies. Unsurprisingly, they report far lower
volatility than public markets.
This appraisal accounting also encourages lenders to take risks. After the financial crisis, the Fede.
Select 2 particular media forum types from the following listNews.docxjeffreye3
Select 2 particular media forum types from the following list:
Newspapers
Radio
Television
Internet
Address the following in 1,000–1,250 words:
What specific roles do both media forums that you chose have in exposing the various aspects of a political process? Explain in detail.
How persuasive are these media forums in terms of influencing the public about a politician or a campaign issue? Explain.
How significant a role have both media forums played in providing you with information relating to corruption in government? Provide 2-3 specific examples of information on government corruption that you have received from the media.
Discuss whether the information you’ve received from the media on government corruption has changed your opinion of a particular government official, government office, or political process, be it federal, state or local.
Provide 2–3 examples of media influence with regard to politics and democracy.
Describe and explain the specifics of each example.
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Select
1 of the datasets:
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Set up
a frequency table with names for variables and
run
the frequency analysis.
Using the same dataset you selected for the Frequency Data Runs assignment,
develop
a histogram, pie chart, line graph, and bar graph.
.
Select 1 alternative religion (e.g., Church of Scientology, Tr.docxjeffreye3
Select
1 alternative religion (e.g., Church of Scientology, Transcendental Meditation, Wicca, Druidry) and 1 traditional Western religion (e.g., Judaism, Christianity, Islam) to research and compare in this assignment. The assignment is broken up into two parts.
Part 1: Similarities and Differences
List
at least 2 similarities and 2 differences between the religions you selected. Some categories to consider include holy days, symbols, rituals, core beliefs, ethics, and the role of women.
Part 2: Analysis
Write
a 350- to 525-word analysis of the similarities and differences between the 2 religions you selected. Discuss how the faiths are practiced and how they are perceived by those outside of the faiths in terms of the similarities and differences you noted.
Consider the role of women in these religions. What are some examples of their role in these religious traditions? Has their role changed over time?
Include
APA-formatted citations and a references page.
.
Select 1 existing or defunct magazine or newspaper, and research its.docxjeffreye3
Select 1 existing or defunct magazine or newspaper, and research its history.
Create
a timeline for your selected magazine or newspaper, and
include
its:
First publication date and founder
First publication location
History and its contributions to American culture
Write
a brief summary about your selected publication that answers the following questions:
Who was the original intended audience?
How has the content (e.g., photos, articles, advertisements) changed over time?
What are your predictions for how the publication will survive or advance in the future? Provide examples.
Cite
at least 2 sources to support your assignment.
Format
your citations according to APA guidelines.
.
SeleccionarSelect the item that does not belong.¿Lógico o .docxjeffreye3
Seleccionar
Select the item that does not belong.
¿Lógico o ilógico?
Indicate whether each statement is
lógico
or
ilógico
.
Luz odia a Samuel; ellos se llevan muy mal.
Mi tío murió; por eso mi tía es separada.
En la fiesta brindaron con flan.
Mañana es el aniversario de mis padres y vamos a sorprenderlos con una fiesta.
Muchas personas se gradúan de la universidad cuando están en la etapa de la niñez.
Analogías
Complete the analogies. Follow the model.
Modelo
muerte : morir :: nacimiento :
nacer
muerte : nacimiento :: divorciarse de : [removed]
pareja : amor :: amigos : [removed]
tener una cita : salir con :: separarse de : [removed]
juntos : separados :: divertirse : [removed]
estudiar : graduarse :: niñez : [removed]
Completar
Complete the conversations. Make any necessary changes. Two words will not be used.
cambiar
edad
pastel
regalar
relajarse
romper
—¿Piensas [removed] de trabajo?
—Sí, estoy buscando algo más interesante.
—De postre vamos a servir [removed].
—¡Qué rico!
—¿Qué hacen ustedes en las fiestas?
— Bailamos, comemos, hablamos y en general [removed].
—¿Qué le vas a [removed] a tu padre en Navidad?
— Unos discos compactos. Le encanta la música andina.
.
SeleccionarSelecciona la respuesta que mejor completa cada oración.docxjeffreye3
Seleccionar
Selecciona la respuesta que mejor completa cada oración.
1.Paulino le pide el
(plato)
(menu)
al camarero.
2.El plato del día es
(salmón ) (atún ).
3.Pilar ordena
(leche ) (agua) mineral para beber.
4.Paulino quiere un refresco de
(naranja) ( limón) .
5.Paulino hoy prefiere ( la chuleta) (el salmon) .
6.Dicen que la carne en ese restaurante es muy
(mal) ( sabrosa ).
7.Pilar come salmón con
(champiñones) ( zanahorias ).
Clasificar
Assign the appropriate category to each word.
1.
( la cena) ( el almuerzo) ( el desayuno ) arroz con pollo
2.
( la cena) ( el almuerzo ) (el desayuno)
café con leche
3.
(la cena)
(el almuerzo)
(el desayuno) cereales
4.
( la cena ) (el almuerzo) ( el desayuno )espárragos
5.
(la cena) (el almuerzo ) (el desayuno ) huevos
6.
(la cena)
(el almuerzo ) (el desayuno) refresco
7.
(la cena) ( el almuerzo ) (el desayuno)
sándwich
de jamón
8.
(la cena) (el almuerzo ) (el desayuno)
uvas
Seleccionar
Select the item that does not belong
1.
arvejas
champiñones
frijoles
entremeses
2.
pavo
camarones
salmón
atún
3.
jugo
aceite
vino
té
4.
naranja
maíz
manzana
pera
5.
chuleta de cerdo
melocotón
camarero
zanahoria
6.
lechuga
queso
yogur
leche
¿Lógico o ilógico?
Indicate whether each statement is lógico or ilógico
1.Tengo sed; voy a beber un jugo de pimienta.
lógico
ilógico
2.Normalmente, las salchichas son de carne, de pollo o de cerdo.
lógico
ilógico
3.Comemos la ensalada con mantequilla.
lógico
ilógico
4.Generalmente, el dueño de un restaurante no sirve los platos.
lógico
ilógico
5.El limón es una verdura.
lógico
ilógico
6.Si quieres merendar, puedes comer una fruta.
lógico
ilógico
Completar
Fill in the blanks with the correct form of the words from the list. Four words will not be used.
Frijoles
langosta
menú
pollo
probar recomendar
saber
sabroso/a
1.—Y tu amiga Cristina, ¿come______________ ?
—No, a ella no le gustan nada los mariscos.
2.—No conozco este restaurante. ¿Usted me puede recomendar un plato principal?
—Sí. Debe_____________
el bistec con cebolla. Es muy________________ .
3.—¿Te gusta la sopa?
—Mmm... sí. ____________________ mucho a ajo
¡Inténtalo!
Completa la tabla con la forma correcta del pretérito.
Modelo yo (servir)
serví
Infinitivo
yo
tú
Ud./él/ella
nosotros/as
Uds./ellas
conseguir
- tu__________
nosotros_____________
ellas________________
despedirse
- ella_____________
nosotros_______________ ellas_________________
dormir –yo________________
tu___________________
ella_____________________
dormirse-nostoros_________________
ellas_________________________
morir-tu___________________ ella__________________________
pedir – yo_____________tu_____________
ella____________
el
las______________
preferir_yo_____________ella_____________nosotros__________Ellas_______________
repetir –yo____________ tu_______________ ella_____________
ellas_________________
seguir-yo__.
Segmented Assimilation Theory and theLife Model An Integrat.docxjeffreye3
Segmented Assimilation Theory and the
Life Model: An Integrated Approach to
Understanding Immigrants and Their Children
Lissette M. Piedra and David W Engstrom
The life model offers social workers a promising framework to use in assisting immigrant
families. However, the complexities of adaptation to a new country may make it difficult
for social workers to operate from a purely ecological approach. The authors use segmented
assimilation theory to better account for the specificities of the immigrant experience. They
argue that by adding concepts from segmented assimilation theory to the life model, social
workers can better understand the environmental Stressors that increase the vulnerabilities
of immigrants to the potentially harsh experience of adapting to a new country. With these
concepts, social workers who work with immigrant families will be better positioned to
achieve their central goal: enhancing person and environment fit.
KEY WORDS: acculturation; assimilation; immigrants; life model; second generation
Nearly a century ago,Jane Addams (1910)observed that immigrants needed helpintegrating their European and American
experiences to give them meaning and a sense of
relation:
Power to see life as a whole is more needed in
the immigrant quarter of the city than anywhere
else Why should the chasm between fathers
and sons, yawning at the feet of each generation,
be made so unnecessarily cruel and impassable
to these bewildered immigrants? (p. 172)
The inability of some immigrant families to
integrate the cultural capital from the world left
behind with the demands of the new society creates
a gulf of experience between immigrants and their
children that can undermine the parental relation-
ship. Today, the issue of family cohesion in the face
of acculturative Stressors remains central to the im-
migrant experience and creates a sense of urgency
because it is so linked with the success of the second
generation. The size of the immigrant population
and the role their children \vill play in future labor
markets (Morales & Bonilla, 1993; Sullivan, 2006)
moves the problem from the realm of the person
to the status of a larger public concern.
Immigrant families are rapidly becoming the
"typical" American family. More than one in seven
families in the United States is headed by a foreign-
born adult. Children of immigrant parents are the
fastest growing segment of the nation's child popula-
tion (Capps, Fix, Ost, Reardon-Anderson, & Passel,
2004).The U.S. Census Bureau (2003) reported that
slightly more than 14 million children (approxi-
mately one in five) live in immigrant families; the
percentage is even higher (22 percent) for children
under the age of six (U.S. Census Bureau, 2001).
At a structural level, these changing demographics
create large-scale and long-range effects that bear
on many social services and many issues of social
pohcy (Sullivan, 2006). Specifically, the population
growth of native-born children in nonwhite im.
Seeking your ability to think about criminalsocial issues .docxjeffreye3
Seeking your ability to think about criminal/social issues:
Find a scenario involving either gangs and gang violence, or the role of drugs and alcohol in violence.
Describe the perceived causes of the criminal behavior.
What lessons can be learned, that might prevent future instances of this type of criminal behavior? Support your approach with evidence gathered from course content or reliable outside sources.
.
Seeking help with week 4 UOP PSY525 team assignment. Only one.docxjeffreye3
Seeking help with week 4 UOP PSY/525 team assignment.
Only
one
section of the assignment must be completed:
the section titled "Participants"
.
File attached with specific assignment details.
Also included, reading material needed to complete assignment. Please review all info and let me know if you can assist. Thank you!
.
Seeking a minimin of one page with scholarly in-text references with.docxjeffreye3
Seeking a minimin of one page with scholarly in-text references with headers!
Provide a detailed explanation of:
· What is Oppositional Defiance Disorder (ODD)
· How the diagnoses affect Navid
· How the diagnoses affect the family
· How does the death (grief) of Marlo affects the family
Background
Edwin was referred to social work department due to his son’s behavior problems. The son (age 9) was diagnosed with Oppositional Defiance Disorder (ODD) and is also affected by his mothers death.
Description of Family System
Father: Edwin Morales, Male, Heterosexual from El Salvador.
Ethnicity: Salvadorian
Religion: Catholic
Employment: Salvadorian Restaurant. Dishwasher and waiter.
Mother: Marlo Morales. Deceased 1-year-ago in a traumatic car accident.
Children:
Navid Morales
, Aged 9, Dx: Oppositional Defiance Disorder, Family referred by school based on his behavior
,
Male, Heterosexual
Pablo Morales, Aged 7, Male, Heterosexual
Juan Morales, Aged 5, Male, Heterosexual
Isabel Morales, Aged 3, Female, Heterosexual
.
Seeking a 500 word document that outlines(A) who most commonly .docxjeffreye3
Seeking a 500 word document that outlines:
(A) who most commonly commits IP theft and why. For example, many transnational organized criminal organizations are involved in the import and sale of counterfeit goods because the penalty for IP theft is lesser than drug or arms smuggling.
(B) The effects of IP theft on the economy will also be discussed and why IP theft continues to prevail.
Please include at least 2 scholarly sources.
.
seek limited’s group report &meetingiiTable of C.docxjeffreye3
seek limited’s group report &meeting
ii
Table of Contents
Title of Formal Document in Initial Capital Letters i
Summary ii
Mission Statement 6
OUR VISION 6
About Cool Bikes 6
CORE VALUE AND GOALS 7
OUR VALUES 7
BICYCLING: 7
YOUTH 8
GROUP 8
TRAINING 8
ACCESS 8
ENVIRONMENT 8
SOCIAL JUSTICE 8
OFFICE BEARERS 8
Our Products: 10
Marketing Strategies: 11
ETHICS 12
SOCIAL ENVIRONMENT 12
CORPORATE SOCIAL RESPONSIBILITY AND ACCOUNTIBILITY 12
1st Rollover – 05 August 2018, 23:59pm (Sun) 13
2nd Rollover – 04 Dec 2016, 23:59pm (Sun) 14
3rd Rollover – 04 Dec 2016, 23:59pm (Sun) 16
4th Rollover – 04 Dec 2016, 23:59pm (Sun) 18
5th Rollover – 04 Dec 2016, 23:59pm (Sun) 20
6th Rollover – 04 Dec 2016, 23:59pm (Sun) 22
7th Rollover – 04 Dec 2016, 23:59pm (Sun) 24
8th Rollover – 04 Dec 2016, 23:59pm (Sun) 26
The summery of the game play: 28
Conclusion: 32
Mission Statement
Our mission is very simple; help the world use bicycle as a simple solution to complex problems. Also to build long term relationships with our customers and clients to provide outstanding customer services by pursuing an advanced technology.
Our belief is that cycle is the most efficient form of human transportation. We also want to provide our nation a strong healthy life and fitness. It brings us together yet allows us to escape. And it takes us places we would never see any other way.
The Cycling is most cheap transportation and low-impact exercise that can be enjoyed by people of all ages. Regular cycling has many physical and mental health benefits. It is one of the best ways to reach your destination where no one can reach with other transport. It reduces your risk of health problems such as stroke, heart attack, some cancers, depression, diabetes, obesity and arthritis.
OUR VISION
Our commitment to design, technology, safety and engineering, matched with a passion for everything that guides us each and every day. Our aim is To Provide Quality Products that exceeds the expectation of customers. We are investing money in research and developments to reach the variety of technology, lifestyle and software that can be used to build a modern cycles for our nation. Our focus is to develop multiple product areas including youth, road and mountain cycles. Our goal to maximize our shareholder wealth by paying dividends and to increase the share value. As a CFO, my concerned with financial matters for the practical implementation of finance. Our intimate objective, How to borrow money, from where to borrow money, how to pay debts. That’s all factor leads the company success and make the shareholders happy.
About Cool Bikes
Cool Bikes name was established as a small bike company in 1916. In its 100 years of lifespan Cool Bikes now serves the world. Company is there to meet the customer’s satisfaction by providing quality bikes and affordable prices.
Cool Bikes is an Australian based Bicycle Company; our bikes are aimed to make riding fun, practical .
See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/231829502
The Concept of Sustainable Economic
Development
Article in Environmental Conservation · June 1987
DOI: 10.1017/S0376892900011449
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Colorado State University
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SEE YELLOW HIGHLIGHTED AREA BELOWPart 1.Laying the Foundat.docxjeffreye3
SEE YELLOW HIGHLIGHTED AREA BELOW
Part 1.
Laying the Foundations of Spiritual Formation
Chapter 1.
Introducing Spiritual Formation
Jonathan Morrow
Beloved, now we are children of God, and it has not appeared as yet what we will be. We know that when He appears, we will be like Him, because we will see Him just as He is.
—1 John 3:2 NASB
The Bible alone, and the Bible in its entirety, is the Word of God written and is therefore inerrant in the autographs. God is a Trinity, Father, Son, and Holy Spirit, each an uncreated person, one in essence, equal in power and glory.
—Doctrinal Statement, Evangelical Theological Society
Spiritual formation1 has had many traditional and denominational expressions throughout church history.2 In recent years resurgence in thinking about spiritual formation has swept over the evangelical landscape. Our purpose here is to set forth a distinctively evangelical view of spiritual formation. Our journey will begin as we (1) examine the necessary preconditions for doing distinctively evangelical spiritual formation. We will then (2) examine spiritual formation in light of the gospel and (3) explore in panorama the theological implications for spiritual formation. We will conclude our journey, equipped with theological clarity and content, as we (4) show how God spiritually forms believers into the image of his Son, Jesus Christ.
Preconditions for Doing Evangelical Spiritual Formation
Certain preconditions for doing distinctively evangelical spiritual formation will frame our approach. These are the indispensable rails on which the following discussion runs. One essential distinctive of an evangelical approach to spiritual formation is a high view of Scripture.3 All else derives from this unique source of God's special revelation to humanity. Before examining God’s special revelation in the Bible, it should be noted that evangelicals also affirm God’s general revelation through what he has made. God has not left himself without witness since all of creation is stamped with the divine fingerprint.4
God has spoken. But what precisely does that mean? Evangelicals confess that God has spoken truly5 and authoritatively6 through his Word (special revelation). David Clark in his comprehensive work, To Know and Love God, offers a crisp summary of the evangelical view of Scripture.
[The Bible] alone is the unique, written revelation of God, a permanent, meaningful, and authoritative self-expression by God of his nature and will. The Holy Spirits act of superintendence— inspiration—was decisive in the writing of Scripture and is the reason the Bible possesses unique status as revelation. Through inspiration, the Holy Spirit aided those who wrote the Bible. The Spirit then guided the church in identifying inspired works and collecting them as the canon. This supervision renders Scripture uniquely authoritative for Christian believers. Of course, the Spirit also preserved the Bible and now guides in interpreting the Bible, .
See ENF450 Search Strategies and the Student Resources links and sup.docxjeffreye3
See ENF450 Search Strategies and the Student Resources links and support your answers with research.
Explain the degree to which each of the crime reduction strategies uses crime analysis.
Describe how successful or unsuccessful the strategies are.
Research crime analysis and crime prevention. Are you able to locate any research that shows a clear connection between the two? If not, what does the research say about this issue?
.
Seed TagsCollect a variety of seed tags. Take photos of the .docxjeffreye3
Seed Tags
Collect a variety of seed tags. Take photos of the seed tags.
Identify what the seed tags are showing.
Summarize which information and tags are most helpful and why. Include what information would be helpful to have but is not included. Discuss what you can learn from a tag and what would be helpful.
.
see videohttpsyoutu.be-O5gsF5oylsconsider how hist.docxjeffreye3
see video
https://youtu.be/-O5gsF5oyls
consider how historical incidences of unethical treatment of research subjects has informed the ethical conduct of nursing and biomedical research (CSLO 2);
evaluate the significance of the Nuremberg Code and the Declaration of Helsinki (CSLO 2);
defend the human rights that require protection in research(CSLO 2) ;
integrate the informed consent process with IRB review (CSLO 2); and
evaluate research misconduct (CSLO 2).
.
See Topic on the project 1 paperTarget- Casemanager and care.docxjeffreye3
See Topic on the project 1 paper
Target- Casemanager and care coordinator teams
Setting- Managed Care organization
Goal is to create a transition of care for use by the Target departments to prevent readmission of Diabetic patients that discharge from hospital to the community (home).
.
See attachments for information.Looking for assistance on an assig.docxjeffreye3
See attachments for information.
Looking for assistance on an assignment, essentially an unfinished .java file (phase 1) then the finished .java file (phase 2.
For the Phase 1, I will neeed
NOTE: Your program must adhere to the specification
• Only programs that successfully compile will be considered for assessment.
• Your javadoc comments must be correct and complete and successfully generate an HTML document without warnings.
.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
6. Securities Firms and Investment Banks (IBs)
Investment banks (IBs) help corporations and governments raise
capital through debt and equity security issues in the primary
market
Underwriting is assisting in issuing new securities
IBs also advise on mergers and acquisitions (M&As) and
10. 2
Investment bankers assist borrowers in raising capital in debt
and equity markets and provide advice about mergers and
acquisitions, corporate restructuring and general assistance in
finance. Bankers also provide many creative over the counter
derivative products. Securities firms provide brokerage and
market making services. The investment banking and securities
industries are complementary and many firms provide a broad
range of services. Some specialized entities with advantages in
certain market niches remain less diversified. The industry
underwent tremendous consolidation in the last decade due to
increasing scale and scope economies and the need for greater
capital. The face of the industry was changed forever during
the financial crisis of 2007-2008 with forced buyouts of Merrill-
Lynch and Bear-Stearns, failure of Lehman Brothers and
Goldman-Sachs and Morgan Stanley becoming commercial
banks. Nevertheless, working for many of these firms is often
considered the penultimate finance career, with prestige and
remuneration to match. With industry profits down, firms on
the Street are having a difficult time maintaining their large
salaries and bonuses. A very significant portion of profits are
paid out in the form of remuneration to executives. The chapter
presents an overview of the size of the industry and the general
strategies of the participants, major activities, primary assets
and liabilities on the balance sheet, recent in the news events
concerning breaches of ethics and the trend toward
globalization.
Size, Structure and Composition of Industry
The size of the industry is usually measured by the equity
capital of firms rather than total asset size
Equity capital in the industry in 2015 was $235 billion
The number of firms in the industry changed due to economies
of scale and scope, losses with the economy, scandals at some
firms, and regulations that allowed both inter- and intra-
11. industry mergers
5,248 firms in 1980
9,515 firms in 1987
6,016 firms in 2006
4,115 firms in 2016
As with commercial banks, consolidation has largely occurred
through mergers and acquisitions
12.
13.
14. 3
Total assets in 2016 comprised $4.32 trillion. Equity capital,
the more traditional measure for this industry, was $235 billion.
The industry underwent shakeouts in the 1970s after “May Day”
and again after the 1987 crash. The number of firms fell from
9,515 in 1987 to 5,063 in 2010 and to 4,115 in 2016. Ever
larger firms have also been created via intra and inter-industry
mergers. The amount of capital firms employ has also grown
dramatically and probably now represents a valid entry barrier.
The industry can be broken down into three major subdivisions
and a group of smaller specialized firms:
Commercial bank holding companies that operate diversified
national full line firms that serve both retail and corporate
customers such as Bank of America and J.P. Morgan Chase.
These firms’ income comes primarily from brokerage, lending,
and underwriting and trading activities.
National full line firms specializing in corporate finance such as
Goldman Sachs. Their income is primarily from underwriting,
placement, mergers and acquisitions other consulting services
and trading income.
Large investment banks such as Lazard Ltd and Greenhill and
Company
Specialized firms such as
regional investment bankers (D.A. Davidson, Raymond James),
(sometimes labeled ‘boutiques’)
discount brokers (Schwab),
Internet brokers (E-Trade),
venture capital firms (New Enterprise) &
exchange floor specialists (LaBranche & Co.)
dealers in off exchange trading (KCG or Knight Capital Group)
The size of investment banking and securities trading is
15. not properly measured by industry assets because, unlike bank
or insurance financing, investment bankers and securities firms
need not permanently hold all of their securities. Their purpose
is to turn them over quickly. Equity capital measures a firm’s
ability to turnover large issues since firms will only risk limited
amounts of their capital at one time. Underwriting volume is
also used to measure activity.
In May of 1975 brokerage commission rates were
deregulated leading to reduced commission revenue. Lower
commission revenue translated into lower profitability and
caused a major industry shakeout of less competitive firms.
Investment Banking
Investment banking
First time debt and equity issues occur through initial public
offerings (IPOs)
New issues from a firm whose debt or equity is already traded
are called seasoned security offerings
A private placement is a securities issue that is placed with one
or a few large institutional investors
Public offerings are offered to the public at large
IBs act only as an agent in best efforts underwriting
IBs act as principals in firm commitments
16.
17.
18. 4
Investment banking is underwriting and distributing new issues
of debt and equity. The top 5 underwriters are listed in Text
Table 16-3. The top firms represented about 26.7% of the total
underwriting volume. A key factor of success in the investment
banking industry is reputation and bankers guard their firm’s
name jealously.
One can see the pecking order in the banking industry in a
tombstone ad. The lead or managing underwriter(s)’ names will
appear at the top of the list of bankers involved in the issue.
Where the bankers’ name appears in this list is very important
to the banker’s reputation.
19. U.S. corporate underwriting activity for debt issues is almost
always many times larger than the volume of equity
underwriting though equity deals usually dominate the
headlines. Investment banking strategy elements can be
discussed with the help of Text Table 16-3 which contains the
top underwriters for different security types. For the period
January to September 2016 Morgan Stanley was tops for IPOs
and JPMorgan for equity, syndicated loans and global debt.
After declining precipitously during the financial crisis, and
peaking in 2015, $5,518 billion of debt and $420.9 billion in
equity were underwritten in the first 9 months of 2016.
Placement methods:
Firm commitment: In a firm commitment the underwriter buys
the issue from the issuer at a set price called the bid price and
then attempts to sell the issue to the final buyers at a slightly
higher amount called the offer price. The banker acts as a
principle in this transaction and the banker bears the risk of a
failed issue if it does not sell. The banker may not raise the
offer price during the offer period once it is announced. In this
sense the banker has a profit profile similar to a written put
option with limited upside gains and unlimited downside loss
potential. Bankers slightly underprice issues and charge fees to
offset the risk of underwriting. A significant amount of pre-
selling activity occurs (the so called “road show”) to limit the
investment banker’s risk of selling the issue.
Best efforts: The investment banker agrees to market and
distribute the issue and use their ‘best efforts’ to sell the issue
to the public, but the banker does not buy the issue outright and
is not at risk if buyers do not want the securities offered.
Private placements: Issues sold to a few large primarily
institutional investors are termed private placements and are
exempt from SEC registration requirements. Private placements
can now be traded among institutional and high net worth
investors.
23. Venture Capital
Venture capital (VC) is a professionally managed pool of money
used to finance new (i.e., start-up) and often high-risk firms
VC usually purchases an equity stake in the start-up
VC firms are not generally passive investors, but instead
provide valuable expertise to the firm’s managers
Institutional venture capital firms find and fund the most
promising new firms
Venture capital limited partnerships
Financial venture capital firms
Corporate venture capital firms
24.
25.
26. 6
It can be difficult for small firms to obtain sufficient capital to
grow. Many banks are not willing to lend to small firms who do
not have a sufficient record of profitability and may not have
sufficient collateral. An alternative source of financing is
through venture capital (VC) or angel investors. Venture
capitalists are typically limited partnership organizations that
specialize in financing and assisting in the management of small
startup entities. VC investors purchase an equity stake in the
enterprise and usually are actively involved in the business
management of the firm in which they invest. The VC firm will
have a well defined exit strategy and an exit timeline. The exit
strategy is usually to take the firm public or to find a buyer for
the firm, usually within 10 years. VC firms usually invest
money in stages to limit their capital at risk. VC capital is not
uniformly distributed among different industries. A VC
investor is looking for the ‘next big idea’ and is often
concentrated in whatever industry is ‘hot’ at the time, often in
technology and bioengineering firms. The typical VC investor
has traditionally been looking for a 20% to 30% annualized
return on invested capital, although in recent years returns on
the NVCA index have been less than returns on major stock
indices.
Many small investors obtain funding from angel investors.
Angel investors can range from wealthy individuals who are
willing to put up capital without requiring such a high return on
27. investment nor providing active management to professional
investment firms that specialize in smaller deals than VC firms.
The federal government provides funding through the Small
Business Administration (SBA) to assist in venture financing.
The SBA licenses privately organized Small Business
Investment Companies (SBICs) to help finance entrepreneurs.
SBICs can obtain funds from the Treasury so they have a cost
advantage over private VC firms.
Some banks operate VC firms (financial VCs) and some
corporations such as Intel operate VC firms as well.
Implementation of the Volcker Rule in July 2014 continues to
lead to reduced investment in all forms of private equity by
banks. Bank of America has eliminated its private equity fund
and Goldman Sachs and Citigroup are reducing their
investments. This may reduce the supply of funds available to
VC and private equity, at least temporarily.
https://www.forbes.com/sites/suzytaherian/2020/04/26/what-is-
the-future-of-venture-capital-post-crisis/#40e46e782981
28.
29.
30. Venture Capital vs. Private Equity
Private equity investments
Private equity (PE) differs from VC in funds sources and in
types of investments
PE firms raise funds by selling securities rather than
commingling private funds
PE firms often acquire established existing firms rather than
purchase start-ups
31.
32.
33. 8
Private equity (PE) differs from VC in funds sources and in
types of investments. PE firms raise funds by selling securities
rather than commingling private funds as many VC firms do.
Second, PE firms often acquire established existing firms rather
than purchase start ups. During and after the crisis however
there have been fewer promising startups so VC firms have
begun engaging in PE type investments.
37. Market making involves the creation of secondary markets for
an issue of securities
Agency transactions are two-way transactions made on behalf of
customers
With principal transactions, market makers seek to profit for
their own accounts
In 2016, J.P. Morgan Chase managed over $53 trillion in
derivative securities (28% of all derivative securities held by
FIs)
38.
39.
40. 10
Market making is creating a secondary market for securities or
contracts. These involve both agency (brokerage) and principle
(dealer) functions. Brokerage is typically remunerated with
commissions and dealers profit from the bid-ask spread.
Dealers buy at the bid (low) and sell at the ask (high). Dealers
incur the risk of price changes on the stock since they must
maintain an inventory and bear inventory financing costs. On
the NYSE, specialists are designated market makers that have
an affirmative obligation to ensure ongoing market liquidity and
price continuity. If the majority of investors wish to sell the
stock, the specialist is charged with buying in order to provide
market liquidity. In the event of a large market move the
exchange’s circuit breakers may halt trading, relieving
specialists of their obligation. In addition specialists may
petition the exchange to halt trading in a given security.
The size of the spread is determined by the security’s volatility,
inventory financing costs, the amount of trading and
competition between non-colluding dealers and regulations.
Decimalization reduced the minimum stock spread from about 6
cents (1/16) to 1 cent. To the extent that reduced spreads
encourage more trading volume, specialists and other brokers
could see an increase in commission revenue. Increased
competition from ECNs and other markets have led to an
erosion of specialist profits however.
JPMorgan managed $53 trillion in derivatives in 2016 (about
28% of the total held by FIs). Derivatives are a major source of
income for banks, although they are risky. Losses from
41. subprimes and derivatives were over $1 trillion as of 2009 so
these are risky investments. Implementation of Dodd-Frank
rules on OTC derivatives were phased in in 2013 and are now
largely in place. The main changes are that OTC derivative
positions such as swaps must be traded on an exchange and
cleared through a clearing agency. This change will probably
reduce profits per deal and may lead to increased capital
commitments to meet margin requirements. However over the
long run, one would expect a pickup in trading activity and
perhaps volume which may create opportunities for banks to
generate additional profits.
Trading
Trading involves taking an active net position in an underlying
instrument or asset
Position trading involves relatively long-term views of market
trends
Pure arbitrage involves attempts to profit from price
discrepancies
Risk arbitrage involves attempts to profit by forecasting
information releases
Program trading is the simultaneous buying and selling of at
least 15 different stocks valued at $1 million or more
Stock brokerage involves trading on behalf of customers
Electronic brokerage offers customers direct access, via the
internet, to the trading floor
42.
43.
44. 11
Trading activities include:
Position trading: Holing a position for weeks or months
Pure arbitrage; arbitrage is taking advantage of a mispricing
between two markets by simultaneously buying and selling the
same commodity. Spot futures arbitrage is a common example.
Risk arbitrage; taking advantage of a real or perceived
mispricing based on some information the trader possesses
without perfectly covering or eliminating all the risk.
Program trading; defined as simultaneous buying and selling of
a portfolio of at least 15 different stocks valued at more than $1
45. million in total using a computer program to initiate the trade.
Some forms of program trading are either pure or risk arbitrage,
such as stock index futures arbitrage trades. Portfolio insurance
is another form of program trading.
Stock brokerage; processing buy and sell orders from the
public. Many firms either buy or lease seats on the NYSE
and/or are NASDAQ members.
Full service brokers offer research and advice about which
stocks to buy, discount brokers process public orders for a
reduced fee.
Electronic brokerage offers investors direct access to the
trading floor, bypassing normal brokers and offering even lower
fees than discount brokers. Examples include E-Trade and
Ameritrade. Most large firms now offer clients a choice of full
service brokerage or reduced cost electronic trading.
Investing and Cash Management
Investing involves managing pools of assets such as closed- and
open-end mutual funds
As agents
As principals
Cash management involves offering deposit-like accounts, such
as money market mutual funds (MMMFs), that offer check
writing privileges
46.
47.
48. 12
Securities firms have long offered accounts called Cash
Management Accounts (CMAs) that were similar to bank
checking accounts. Beginning in 1999 securities firms were
allowed to offer federally insured deposits. These accounts
have normally been checking accounts written on mutual fund
investments. Many of these accounts now offer ATM and debit
card services. CMAs make it easier and cheaper for brokers to
process payments for security buy and sell orders. Note that
since the FSMA securities firms can also offer loans, credit
cards and other banking type services to customers and banks
can offer traditional brokerage services. New rules that will
49. soon be in place are likely to force these accounts to change.
Currently money market investments have a fixed $1 net asset
value (NAV). As part of increased oversight from the Dodd-
Frank bill these accounts will soon be forced to trade at varying
NAV so that investors can understand the risks they face in
these investments. It remains to be seen whether investors will
no longer consider these accounts as close substitutes for bank
deposits.
Mergers and Acquisitions
Investment banks frequently provide advice on, and assistance
in, mergers and acquisitions
Assist in finding merger partners
Underwrite any new securities to be issued by the merged firms
Assess the value of target firms
Recommend terms of the merger agreement
Assist target firms in preventing a merger
M&A activity
$1.15 trillion for the first nine months of 2016
50.
51.
52. 13
Investment bankers help find merger partners, underwrite new
securities to be issued as a result of a restructuring or
acquisition, assess the value of a potential target, recommend
takeover terms, or assist in fighting off a hostile takeover.
U.S. and global M&A activity boomed in the late 1990s and
through 2000 topping out at $1.83 trillion in 2000, but activity
declined substantially after that. In 2001 U.S. M&A activity
totaled $819 billion, down 53% from the prior year, and
declined again in 2002 to $458 billion. M&A activity picked up
slightly in 2003 to $465 billion, but grew rapidly again in 2004
when the total value hit $748 billion, led by mergers of
financial institutions. M&A activity in 2007 was $1.59 trillion
before declining until 2011. M&A activity began to recover
strongly in 2014 to $1.13 trillion and again in 2015 with M&As
worth $1.50 trillion and continued strongly in the first nine
53. months of 2016 at $1.15 trillion. Worldwide activity also
increased over the same time period. While M&A activity
brings large fees to bankers, this type of business remains very
cyclical and it declined during the financial crisis, picking up in
2011.
According to a very interesting piece by Michael Jensen,
“Agency Costs of Overvalued Equity,” M. Jensen, Spring 2005,
Financial Management, pp, 5-19, many if not most of the large
number of acquisitions in the late 1990s destroyed shareholder
value. He argues that overpriced equity led to too low cost of
capital and encouraged managers to engage in poor investments
such as acquisitions in order to meet analysts’ earnings
expectations. Given that a high P/E ratio predicts rapid
earnings growth and/or low risk, too high a stock price then
predicts an impossibly high growth rate (and/or an
unrealistically low level of risk). The manager, expected to hit
ever growing earnings targets, faces an impossible task, because
with overvalued equity management cannot deliver the expected
level of performance except by chance. Hence firms look for
ways to keep the fiction of improving performance alive, even
resorting to illegal accounting practices and poor acquisitions.
This is a very interesting argument. It helps explain why there
were extreme pressures on managers to produce short term
performance. It is not that managers suddenly decided to ‘lie,
cheat and steal.’ The pressure to perform has been very high,
and brought about in part by too close a tie between Wall Street
analysts and corporate executives, a conflict of interest. With
overvalued equity, stock price signals are faulty and cannot be
relied upon as indicators of long term value of the firm. Trying
to do so when those signals are wrong must lead to suboptimal
decisions for long term shareholder wealth. Several firms
enlisted their professional consultants in accounting and finance
to help them find ways to hit performance targets, which of
course could not continue to occur without some form of
‘cheating’ such as accounting manipulations. This argument
54. does not excuse managers. They should have known better. We
have seen a major breakdown of corporate governance at the
board level. Too many managers had ethical failures even
though they were highly paid to act in shareholders interests.
https://www.forbes.com/sites/allbusiness/2020/04/17/impact-of-
coronavirus-crisis-on-mergers-and-acquisitions/#65689deb200a
55.
56.
57. Other Service Functions
Other Service Functions
Custody and escrow services
Clearance and settlement services
Research and advisory services
IBs are making increasing inroads into traditional bank service
areas, such as small-business lending and the trading of loans
58.
59.
60. 15
In addition to the above functions, investment bankers and
securities firms also provide security custodian services,
clearance and settlement services, escrow services, research and
advice on divestitures and asset sales. Fees for these services
are often bundled together and allocated for different activities.
Some of these ‘soft dollar’ allocations have come under scrutiny
as alleged conflicts of interest have arisen between the
underwriting and security selling functions of investment
bankers
Industry Performance
Industry trends depend heavily on the state of the stock market
and the economy
Commission income fell after the 1987 stock market crash
Improvements in the U.S. economy in the mid-2000s led to
increases in commission income, but income fell with the stock
market in 2006-2008 because of rising oil prices and the
subprime mortgage collapse
Commission income again rose to between 15 and 20 percent of
total revenues as the economy and the stock market recovered in
the early- and mid-2010s
61.
62.
63. 16
As goes the stock market, so goes securities firms’ profitability.
Industry profits are strongly cyclical. Extended bull markets
are good for profits, employment and growth; crashes and
downturns hurt trading volume and hence commission income (a
mainstay of revenue at most firms). Fewer firms seek to issue
new equity during a bear market, and debt issuance drops off as
64. coverage ratios decline so underwriting income is also cyclical.
Both underwriting and brokerage income recovered dramatically
in the 1990s after dropping off precipitously subsequent to the
1987 crash. Profitability remained strong with the bull market
of the 1990s. Industry profits were at a record high $21 billion
in 2000, but fell 50% in 2001. Reasons for the profit problems
included the weak stock market, the September 11, 2001
attacks, the drop in M&A activity, and the loss of confidence by
investors due to the many ethical violations by some
corporations, bankers and auditors. Profitability remained poor
in 2002 at $6.9 billion, but increased in 2003, hitting a record
$22.5 billion and remained high at $19.5 billion in 2004 on
large increases in underwriting activity and hefty cuts in
interest and operating expenses. ROE for 2004 was 13.04%.
Domestic underwriting activity was $3,358.3 billion in 2006.
Profits would have been up in 2005 but interest expense on
financing securities inventories increased as interest rates rose.
Interest expense rose from $43 billion in 2003 to $136 billion in
2005 to almost $216 billion in 2006. Pre-tax profits fell to
$17.6 billion in 2005 but recovered to $33.1 billion in 2006 due
to additional revenue growth. The year 2007 was as bad a year
for these firms as it was for most of the financial services
industry due to the subprime crisis. UBS wrote down $10
billion of subprime related assets in 2007. Likewise, Morgan
Stanley wrote down $9.4 billion, Merrill Lynch wrote down $5
billion. Two hedge funds of Bear Stearns collapsed and went
bankrupt due to their subprime holdings as well. This was the
setup to the Federal Reserve assisted bailout of Bear in March
2008 where J.P. Morgan Chase agreed to purchase Bear for $2 a
share or $236 million. J.P. Morgan Chase also received
guarantees on parts of Bear’s mortgage portfolio.
In 2008 the industry reported net losses of $34.1 billion as
revenues fell 38.7%. Expenses fell as well particularly because
with the lower interest rates, interest expense declined.
Trading and investment account losses for the industry were $65
65. billion. As a result employment in the industry fell from
869,000 to 840,800. Employment kept falling to 779,800 in
September 2009. Profits rebounded sharply in 2009 reaching a
record $61.4 billion. Commissions, fee income and trading
profits all rebounded and interest expense remained very low as
the Fed kept interest rates down. High profits helped in
rebuilding capital and efforts to raise external equity.
Industry Performance Continued
By the mid-2010s, while the industry had put most problems
from the financial crisis behind it, the industry was affected by
post-crisis consequences, with increased regulation on risk
taking and capital requirements
This has led to balance sheet reductions, as well as downsizing
or disposition of select businesses, trading products, and
investments
Corporate strategies increasingly focus on client services and
away from making large bets through principal investments
66.
67.
68. 17
The years 2010 through 2012 brought many new challenges.
The threat of a ‘fiscal cliff’ as U.S. government debt levels
grew rapidly while Congress could not decide whether to
increase the debt ceilings, the problems in the Euro area,
increasing regulations and generally weak U.S. economic
growth limited profitability for many firms. In May 2010 the
‘flash crash’ brought more scrutiny to trading activities as did
the collapse in October 2011 of MF Global along with the
trading glitch at Knight Capital in August 2012. Pretax profits
fell from 2010 levels of $34.8 billion to $10.6 billion in 2011
and $12.4 billion in 2012. The fiscal cliff problem was resolved
in January 2013 and after the European Central Bank pumped
about $1 trillion into euro area banks the euro crisis subsided.
In 2013, trading activity, and municipal bond and equity
underwriting began to grow once more and profitability
improved. Most of the problems of the financial crisis have
been worked through now, but more restrictive regulations on
derivatives, capital requirements, and in particular the Volcker
69. Rule, have restricted profitability in 2013, 2014 and 2015.
Pretax profits were $26.3 billion, $27.0 billion and $23.8 billion
respectively over this time period. These are all lower than in
2012 even though the …