What are the primary functions of investment banks?

Investment banks offer diverse financial services.

• Facilitate Initial Public Offerings.

• Advise on mergers and acquisitions.

• Engage in trading of securities.

Fill in the blanks: Investment banks act as intermediaries between ___ and ___.

Security issuers and investors

True or False: Investment banks can only provide services related to stock trading and cannot engage in risk management.

False. Investment banks also engage in risk management and provide advisory services.

What role does an underwriter play in the financial world?

An underwriter assesses risk and determines how much insurance or capital should be granted to a client or an investment.

Riddle: I assess risks and help companies go public, getting paid for my expertise in managing money. What am I?

An investment banker

Fill in the blank: The process of determining the value of a company during an acquisition is known as ___.

Due diligence

What are the key responsibilities of a debenture trustee?

Debenture trustees ensure holder protection.

• Protects debenture holder interests.

• Ensures compliance with trust deed.

• Communicates defaults to investors.

Multiple Choice: Which of the following is NOT a service provided by investment banks? A) IPO facilitation B) Real estate management C) M&A advisory D) Risk management

B) Real estate management

What challenges do investment banks face related to legacy technology?

Investment banks face legacy tech issues.

• Outdated systems limit innovation.

• Inefficient risk management practices.

• Struggles with regulatory compliance.

Fill in the blank: The primary regulatory authority overseeing debenture trustees in India is ___.

SEBI

True or False: A portfolio manager's primary role is to invest funds solely in high-risk assets.

False. A portfolio manager customizes investment solutions based on individual client needs, which can include low-risk options.

What is the significance of blockchain technology in investment banking?

Blockchain technology can significantly reduce infrastructure costs and compliance expenses by providing a secure, transparent record of transactions.

Riddle: I connect buyers and sellers in the financial market, ensuring they can raise capital and manage risks. Who am I?

An investment bank

Fill in the blank: The practice of underwriting involves determining the ___ and ___ of a security.

Risk and price

What are the primary functions of investment banks in the financial market?

Investment banks raise capital effectively.

• Facilitate IPOs for companies.

• Advise on mergers and acquisitions.

• Manage risks for clients effectively.