4-3 Securities Trading and Underwriting Is a Profit Generating Activity

question 59

True/False

4-3 Securities trading and underwriting is a profit generating activity that requires FIs to hold an inventory of securities they trade.

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Definitions:

Service Departments

Departments within a company that support the primary operations but don't directly generate revenue.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales; calculated as (Net Income / Sales) * 100.

Income From Operations

The earnings generated from a company’s core business activities, excluding any gains or losses from investments and other non-operational sources.

Invested Assets

Assets acquired by a company or individual as a means of generating future income.