The Principal Reasons for the Growth in Profitability of the Securities

question 126

True/False

The principal reasons for the growth in profitability of the securities industry in the middle 1990s were the trading profits from fixed income securities and the growth in new issue underwriting.

---

Definitions:

Company

An organized entity formed to conduct business activities, selling goods or services in exchange for profit.

Last Year's Margin

Represents the difference between the sales revenue and the cost of goods sold from the previous year, often expressed as a percentage of sales.

Combined ROI

A metric that aggregates the return on investment from multiple projects or business units into a single figure.

Investment Opportunity

A situation where funds can be placed in a venture with the expectation of earning a return on the investment.