I. Financial Intermediaries:

Briefly describe each of the following financial intermediaries in terms of the way they help issuers raise capital:

Commercial Bank: Lending and deposit- taking; also expanded into investment advisory/trust services.

Investment Bank: Handle securities issuance, merger/acquisition and reorganization advisory services.

Financial Services Company: Includes broker/dealers, investment advisory firms.

B.  In what ways do efficient capital markets help both issuersand investors?

II. Capital Raising by Corporations:

Identifyand describetwo typesof securities corporationsmay issue in order to raise capital.

Is an initial public offering (IPO) a form of primaryor secondarymarket transaction? What is (are) the difference(s) between primary and secondary markets?

III. “The Crash of 1929”:

The economic aftermath of the Crash of 1929 – as has been the aftermath of most stock market crashes – was devastating.

List and describe two precursors(economic events or trends, general investment approaches) that have been known to lead to market crashes.

Under the above scenario – and what you have learned about investing in this course and what we have discussed in class -- when confronted with the various investment alternatives of which asset classes to allocate your savings to, what asset class (gold, cash, common stocks etc.) would you select as your principal investment holding and why?