INVESTMENT BANK AND SECURITIES FIRM

Investment Bank

is a financial institution that assists individuals, corporations, and governments in raising capital by underwriting or acting as the client's agent in the issuance of securities (or both).

it may also assists companies involved in mergers and acquisitions and provide ancillary services such as market making, trading of derivatives and equity securities and FICC services (fixed income instruments, currencies and commodities).

Volcker Rule asserts full institutional separation of

investment banking services from commercial banking.

Investment banks do not take deposits unlike commercial and retail banks.

Two Main Lines of Business in Investment Banking:

1. Sell Side Entity

2. Buy Side Entity

1. Sell Side Entity

trading of securities for cash or for other securities.

Activities: Facilitating transactions of trading. Market-making Promotion of securities Underwriting

2. Buy Side Entity

refers to advising institution concerned with buying investment services.

Common Types of Buy Side Entity: Private Equity Funds Life Insurance Companies Mutual Funds Hedge Funds Unit Trust Funds

Investment Banks In Philippines(As of November 19, 2012) JPMorgan Chase Korea Exchange Bank Mega International Commercial Bank MetropoliPhilippinestan Bank and Trust Company Mizuho Corporate Bank Philippine National Bank Philtrust Bank Rizal Commercial Banking Corporation Security Bank Standard Chartered Bank The Bank of Tokyo-Mitsubishi UFJ, Ltd. UnionBank of the United Coconut Planters Bank

Allied Bank Corporation Australia and New Zealand Banking Group Banco de Oro Universal Bank Bangkok Bank Bank of America, N.A. Bank of China Bank of the Philippine Islands China Banking Corporation Chinatrust Commercial Bank Citibank Deutsche Bank AG East West Bank Hongkong and Shanghai Banking Corporation ING Group

Securities Firm A company that facilitates financial market

trades between buyers and sellers for a fee.

Includes firms whose principal lines of business are in securities brokerage, financial advisory services, investment banking and/or securities trading.

Securities Firm can be:

a. Brokerage Firm (brokerage)

- a stock broker's business; charges a fee to act as intermediary between buyer and seller.

b. Bucket Shop

- an unethical or overly aggressive brokerage firm.

c. Non-depository Financial Institution

- a financial institution that funds their investment activities from the sale of securities or insurance.

The Broker, Dealer and Broker-Dealer of Securities

Broker is an individual or party (brokerage firm) that arranges transactions

between a buyer and a seller for a commission when the deal is executed.

DUTIES:

Buy and sell stocks, bonds, commodity futures, foreign currencies and other securities at stock exchanges on behalf of investment dealers.

Develop trading strategies by reviewing investment information and monitoring market conditions from the exchange floor and through contact with trading departments of other investment firms, pension fund managers and investment company financial analysts.

Make bids and offers to buy and sell securities and complete details of sales on exchange trade tickets.

Prepare reviews of portfolios' positions.

Dealer is a firm or person that purchases securities and hold them for later sale

at a profit. one who buy and sell securities his/her own account.

DUTIES:

Performs all the functions of broker including financial consulting.

Announcing the price of the and other essential of buy-sell contract of securities.

Announcing the minimum and maximum number of securities subject to purchase and/or sale.

Discuss the term of announced prices validity. 

Broker-dealer

a person or firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction. 

engages in the business of trading securities for its own account or on behalf of the its customers.

References:http://www.securitiesbroker.com.au/

http://answers.yahoo.com/question/index?qid=20140216013143AAXc75G

http://www.imsciences.net/functions-of-broker-vs-dealer/

http://www5.hrsdc.gc.ca/NOC/English/NOC/2011/ProfileQuickSearch.aspx?val=1&val1=1113

http://thelawdictionary.org/securities-firm/

http://financecareers.about.com/od/fullservicefirms/