Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

What key role does an investment bank play in the context of investments in securities?

Regulating the stock market and enforcing securities laws

Setting interest rates for government bonds

Underwriting and facilitating the issuance of new securities to the public

Providing insurance coverage for investors' portfolios

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Verified step by step guidance

Understand the role of an investment bank in the financial system. Investment banks primarily assist companies and governments in raising capital by underwriting and issuing new securities.

Clarify the concept of underwriting. Underwriting involves the investment bank purchasing the securities from the issuer (e.g., a company) and then selling them to the public or institutional investors. This ensures the issuer receives the required funds.

Recognize that investment banks also facilitate the issuance of new securities. They help design the securities, determine their pricing, and market them to potential investors.

Differentiate the role of investment banks from other entities. For example, regulating the stock market and enforcing securities laws is the role of regulatory bodies like the SEC, not investment banks.

Understand that investment banks do not set interest rates for government bonds or provide insurance coverage for investors' portfolios. These functions are handled by central banks and insurance companies, respectively.