Answers to Finance Questions Essay Example | Topics and Well Written Essays - 500 words

Answers to Finance Questions - Essay Example From this paper it is clear that since the Glass-Seagull Act that clearly defined the functions of investment banks, there has been several changes that have occurred in investment bank activities over the last few decades. These changes have been occasioned by market forces and regulatory requirements. Since the repeal of the Glass-Seagull Act in 1999, there has been increased competition in the investment banks sector due to more entry of more investment banks from commercial banks that opened investment banking wings. According to Santos, regulation are imposed to reduce risk, improve transparency as well as improve leverage. Some of these changes experienced include merchant banking, asset and portfolio management, research and security analysis, providing consultancy services during mergers, acquisitions and take-overs and banking for global funds transactions.This discussion highlights that a  money market mutual fund is where by many investors, both huge and small bring thei r funds together and invest them in short term securities. They are normally open-end funds where investors can purchase and sell their securities at will. These funds are professionally managed so as to reduce risks since the securities traded are highly liquid. Investment banks undertake to determine the levels of risk in different financial instruments and manage them so as to receive the best possible returns. Investment banks offer to trade in other financial instruments other than the conventional debt and equity securities.