a. The securities firm relies heavily on full-service brokerage commissions. Do you think that heavy reliance on these brokerage commissions is risky? Explain.
b. If this firm attempts to enter the underwriting business, would it be an easy transition?
c. In recent years, the stock market volume increased substantially, and this securities firm performed very well. In the future, however, many institutional and individual investors may invest in indexes rather than in individual stocks. How would this affect the securities firm?