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Week 1: Investment Banking Industry and Investment Serivices - Coggle…
Week 1: Investment Banking Industry and Investment Serivices
Characteristics of investment banks
Leverage & Negative Gearing
Dividend Imputation
Capital Gains Tax
Investment/Managed Funds
How they function
Open End Funds
Closed End Funds
Margin Lending
Forms
How much can you borrow
Defitions of terms
How margin calls are met
Crisis
The Great Depression
GFC
Should banks hold capital & why?
Capital provides protection to creditors (including depositors)
Capital fulfils regulatory requirements (APRA)
maintains public confidence in the financial institution
Capital shows a permanent commitment of shareholders to the financial institution
Capital is a cushion against risk by absorbing losses
Capital entails no unavoidable charges (no interest payments or other compulsory regular payments due).