卧的贸易孝 1951 Chapter 13 The Investment Portfolio and Policy Guidelines
Chapter 13 Chapter 13 The Investment The Investment Portfolio and Policy Portfolio and Policy Guidelines Guidelines
The securities activities of large banks and small banks Small banks generally purchase securities and hold them until maturity. Large banks,in contrast,not only buy securities for their own portfolios,but they also frequently: manage a securities trading account manage an underwriting subsidiary that helps municipalities issue debt in the money and capital markets 蔺卧的资土号
The securities activities of The securities activities of large banks and small banks large banks and small banks Small banks generally purchase securities and hold them until maturity. Large banks, in contrast, not only buy securities for their own portfolios, but they also frequently: manage a securities trading account manage an underwriting subsidiary that helps municipalities issue debt in the money and capital markets
Dealer operations and the securities trading account Many large banks hold securities as part of a trading account. A trading account represents an inventory of securities that a bank holds for resale to other investors: In this capacity,banks operate both as primary dealers with the Federal Reserve and as market makers with other participants. 猫的资5+号
Dealer operations and the Dealer operations and the securities trading account securities trading account Many large banks hold securities as part of a trading account. A trading account represents an inventory of securities that a bank holds for resale to other investors: In this capacity, banks operate both as primary dealers with the Federal Reserve and as market makers with other participants
Banks perform three basic functions within their trading activities. 1.Offer investment advice and assistance to customers managing their own portfolios 2.Maintain an inventory of securities for possible sale to investors their willingness to buy and sell securities is called making a market 3.Traders speculate on short-term interest rate movements by taking positions in various securities 的资5土号
Banks perform three basic functions Banks perform three basic functions within their trading activities. within their trading activities. 1. Offer investment advice and assistance to customers managing their own portfolios 2. Maintain an inventory of securities for possible sale to investors their willingness to buy and sell securities is called making a market 3. Traders speculate on short-term interest rate movements by taking positions in various securities
Banks earn profits from their trading activities in several ways. When making a market,they price securities at an expected positive spread, charging a higher price (lower interest rate) Profits arise from a positive spread between the ask and the bid prices Traders can also earn profits if they correctly anticipate interest rate movements 麓封强的黄香+孝
Banks earn profits from their Banks earn profits from their trading activities in several ways. trading activities in several ways. When making a market, they price securities at an expected positive spread, charging a higher price (lower interest rate) Profits arise from a positive spread between the ask and the bid prices Traders can also earn profits if they correctly anticipate interest rate movements