Question

For each of the following nonbank financial institutions, discuss the main financial service(s) each provides, list and explain the financial instrument(s) each deals with, and list at least three (3) real-world companies.

·         Insurance.

·         Pension Funds.

·         Finance Companies.

·         Securities Markets Operations.

·         Mutual Funds.

·         Hedge Funds.

·         Private Equity and Venture Capital Funds.

·         Government Financial Intermediation.

Answer 1

Insurance . Acts as an Underwniter 2. Secuies LRe case of Death 3. Proteets Peos b theft, o loss due to difeyewt sulations - depends upon the type of insurance one take s . £+ Could be et Healt 'vn Sorante, lif- insurante, income protection nSuTance, job loss nSurance, Goods insvrance etc. SU 4 The eal wold examples of tthe nsvranLe are Axa, Pdetial, Allianz, genevall, 2uh 5 These Companies have tied UP wit diftereut Yegonal in surance Comfanies

Pensfon Punds l. The concept of Pension fond is varies 4Yovm counthų to Countvy like in us we have 401 CK) ans 2. The Coutyibon coold be etes by empleyer соо either emplogee bott. 3. The Contsibution aets accumolate over a period of me and employee ตั้ an ïnvestof Can IT a e 9ood -Different pension fundCom panier this mong' and Invests in di#erent markets and in eAoïn enerałe geed moftt whch is then ameng the. invesers with tt l fees Charged b e e mini ma md Manaacf Ploside Stalc board , New yoYk <tate CoMmon.

Finance Companie s: . Finance Companies also known as Financial nsitvtons aYe mainly Serves fnstitwonal inves tors o high net worth indlvidval. the fat amoont of fees to them Š.ĨĻ also lends money to the insHtution al investi ώho need Caprtal foy their busines. 4. Some ot the examples: Hsc, JP morgan chase, BAP payibas, kanK ofAmexica ete.

Secuties market opexations 1. Securitj market opevations nvolve primary market, Secondaty matet ad various ober financial nlermediaries Such as brokerf, Underwmte, depostories performing eč activit foy-mo eix acH ncHonina o e bvjinj aud Selling Secvief iu the capital market. 2.TheYeol world Companies exchanges fvolve d in tese Opeationi aYe Bombay Stock Exchange, New york Stoer Echange, Tok Stock Exchange. 3. Examplesf De-posiHoyles involved aye -Eovo clea, NSDL, Central SecuriHes 4- EKamples of Conmoditics Exchange ADex, ym4,mex. Mutual Fund: mutual杺nd is the pool of the nd's Collected pYofessional manager who has Knouoledge o4 Stou* mavket nvettmeut methods collected Arom ndividval vuesto. T+ coold be. open ended o elose ende d e^: Dsp glack- Rock.

Hedge FUnds: Hedge fond f's the next level nves4me«t shat eg used bd fund manager 훤1, Speculation δ$ eHock also Known as sher es tons in the market. Hedge fund ake lefeyied a·High RRK High Retvins' Funds. Ej:To a psivate eavit: private eZuity ↑sa limited Pay4nevship Poymed fr hi< fond ii managed Special professional manager or fnSHịu tion. Eg : Goldman achc. Ventore CapftalFond<:. that e md provided to the new entore Companies of funds. Eg: Bench mcrk Capftal Grovemment Finencial inlermediation: Guvernmeut is actinq as an in*crmedtator and. mart : Ginnie mae.