1. Regulation of Securities Activities Explain the role of the SEC, the NASD, and the stock exchanges in regulating the securities industry.
SEC is a regulations system that is setup for the issuance of securities with certain rules for issuers. There role is to prevent illegal practices. NASD job/role would be to police the activities of brokerage firms and securities dealers including underwriters and placement agents, for the protection of the investing public. The stock exchanges role would be to establish rules for fair trading practices and regulates the trading activities of its members according to those rules.

2. Investment Banking Services; how do securities firms facilitate leveraged buyouts? Why are securities firms that are better able to raise funds in the capital markets preferred by corporations that need advice on proposed acquisitions?

3. Origination Process Describe the origination process for corporations that are about to issue new stock.

4. Underwriting Function Describe the underwriting function of a securities firm.

5. Failure of Lehman Brothers Why did Lehman Brothers experience financial problems during the credit crisis?

6. Direct Placement Describe a direct placement of bonds. What is an advantage of a private placement? What is a disadvantage?

7. Systemic Risk Why was the Federal Reserve concerned about systemic risk due to the financial problems of Bear Stearns?

Questions:

1. Life Insurance How is whole life insurance a form of savings to policyholders?

2. Whole Life versus Term Insurance How do whole life and term insurance differ from the perspective of insurance companies? From the perspective of the policyholders?

3. Universal Life Insurance Identify the characteristics of universal life insurance.

4. Group Plan Explain group plan life insurance.

5. Assets of Life Insurance Companies What are the main assets of life insurance companies?

Identify the main categories. What is the main use of funds by life insurance companies?

6. Managing Credit Risk and Liquidity Risk How do insurance companies manage credit risk and liquidity risk?

7. Liquidity Risk Discuss the liquidity risk experienced by life insurance companies and by property and casualty (PC) insurance companies.

8. PBGC. What is the main purpose of the Pension Benefit Guaranty Corporation (PBGC)?

9. Defined-Benefit versus Defined-Contribution Plan Describe a defined-benefit pension plan.

Describe a defined-contribution plan, and explain how it differs from a defined-benefit plan.

10. Guidelines for a Trust What type of general guidelines may be specified for a trust that is managing a pension fund?

11. Exposure to Interest Rate Risk How can pension funds reduce their exposure to interest rate risk?