CSC Chapter 2 Questions and Answers
What is SRO?
Self-Regulatory Organization that establishes & enforce industry regulations to protect investors. The SRO monitors the market to ensure fairness in the market & governs the market activities
What is an CDS?
Clearing & Depositary Service wh...
CSC Chapter 2 Questions and Answers
What is SRO? - answer Self-Regulatory Organization that establishes & enforce
industry regulations to protect investors. The SRO monitors the market to ensure
fairness in the market & governs the market activities
What is an CDS? - answer Clearing & Depositary Service where trades are settled
What are financial intermediaries? - answer Are organizations that facilitates trade &
movement of financial instruments. They transfer capital between buyers & sellers.
They can act as agents & principals
What are agents? - answer Dealers acting as agents trade securities between clients
& issuers
What are principals? - answer Dealers acting as principals buy issues from the
issuers & sells them in the market. The take the risk of ownership. The spread is the
profit.
What is underwriting? - answer Dealers transfer capital buy purchasing new
securities for resale in the primary market. They sign & accepts the risks then maintains
the trades in the secondary market
What are subsidiaries? - answer A company's voting stock is >50% controlled by
another company
What are the 3 types of intermediaries firm? - answer Integrated Firm, Institutional
Firms, and Retail Firms
What is an integrated firm? - answer Offer products & services that covers both
institutional & retail firms. Most of its underwriting securities are sold on the secondary
market
What is an institutional firm? - answer More than 70 domestic & foreign firms serve
institutional clients with stocks & MF. They mainly deal with big clients
What is a retail firm? - answer includes full-service & discount brokers
What is a discount broker? - answer Execute trades on a low commission fee. But
they provide no investment advice.
What is an investment boutique? - answer Specializes in stocks, bonds, unlisted
stocks, portfolio management
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Pogba119. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.03. You're not tied to anything after your purchase.
