They also trade in their own accounts, run hedge funds, and generally invest and speculate in ways that most institutions can’t. Investment banks can assist with new issues of stocks and bonds, purchasing large blocks of them to distribute at a premium.
They engage in swaps in international markets and benefit from arbitrage opportunities, often through high frequency trading (HFT). They manage money and serve as consultants to large numbers of business and other financial institutions.
The Glass-Steagall Act of 1932-33 separated investment banking from commercial banking, but it was ultimately repealed in 1999. Some blamed the 2007-2008 crash on the repeal, claiming that there was too much speculation interwoven with the banking industry.
As of 2016 it is unknown if Glass-Steagall will be reinstated, but the Volcker Rule, part of the Dodd-Frank Act of 2010, does put a partition between the investment banking side and the commercial banking side.
In a life with period certain annuity payout option, the company will pay a set income for as long as the annuitant lives
Generally speaking, the closer you are to age 70, the better. But everyone will need to take all options into account
The EURO STOXX 50 is an index designed to give a broad representation of stock performance across the euro zone
The expense ratio is the annual management fee charged to shareholders by ETFs and mutual funds
A dividend yield is a ratio that represents how much a company pays in annual dividends relative to its share price
Settling an account is laying all outstanding business on an account to rest. In macroeconomics, it is a ledger account
The House Price Index (HPI) tracks average prices of homes using data from sales and refinancing, tracking the data...
The IARD system is maintained by FINRA, and keeps track of all adviser registrations, which states they are licensed in
Blockchain technology is a decentralized network structure used to obtain consensus on changes to a shared ledger
The most common way to buy Bitcoin is through online services such as Coinbase, Bitpanda, Bitquick, Localbitcoins, and Spectrocoin