Lpl External Factors

Improved Essays
Show More
External Factors Political, Economic, Social, and Technological (PEST) Analysis The subject of PEST analysis: Whether LPL Financial an existing top-rated independent broker-dealer should offer entrepreneurs access to capital through equity crowdfunding. Political
Increase in governmental oversight to safeguard the public New regulations related to accessing capital Dodd-Frank Act
Sarbanes-Oxley Act SEC regulations Federal Deposit Insurance Corporation (FDIC) regulations Stringent FINRA oversight Economic
Lower interest rate environment Stable inflation rate Fiscal unrest in Greece and China Great Recession of 2008 Low oil prices Mortgage foreclosure and banking crisis
Dollar’s value versus foreign currency Rising GDP Decrease household net worth Fluctuating stock market both nationally and internationally Unemployment influences on consumer spending Social
Number of millennials Aging of the baby boomer generation Increased mortality Uncertainty related to social security
Escalating healthcare premiums Financial scandals & crises Greater focus on …show more content…
Financial changes overseas, economic trends, and changing policies are significant issues that have an impact. A company within the financial services industry must consider the influence of low-interest rates for the last seven years. How will they mitigate the effects of this potential weakness? Kliesen (n.d) found during periods of low-interest people spend rather than save. He determined because of low rates individuals and investors look for an investment product that will offer a higher yield. The solution for this weakness is to consider offering a new product and explore alternative investments. In a competitive business, LPL is one of the largest independent broker-dealers and in a steady and secure position to capitalize on this opportunity. Those companies such as LPL that can adjust will survive during economic

Related Documents

  • Great Essays

    Dotcom Bubble Vs Railway Mania
    • 2303 Words
    • 10 Pages

    Dotcom Bubble Vs Railway Mania

    TERM PAPER: DOT.COM BUBBLE vs RAILWAY MANIA INTRODUCTION Our world has suffered numerous economic crisis ever since we had a concept of money. One may argue that economic crisis and economic growth go hand-in-hand. A very frequent source of economic crisis are speculative bubbles which essentially tailspin our economy into a euphoric state. They fill our investors with irrational exuberance, and coax them to go on an expensive investing spree.…

    • 2303 Words
    • 10 Pages
    Great Essays
    Read More
  • Improved Essays

    Dodd-Frank Wall Street Reform
    • 425 Words
    • 2 Pages

    Dodd-Frank Wall Street Reform

    When the financial crisis of the late 2000s hit, it revealed evident weaknesses in the U.S. financial regulatory structure. The Dodd-Frank Wall Street Reform and Consumer Protection Act is a United States federal law that was enacted in July 2010, following the financial crisis, to create financial regulatory processes to limit risk by enforcing both transparency and accountability. We are going to review the major costs and benefits of the new regulation standards and the effect it has had on Louisiana’s banking industry. Although Dodd-Frank has introduced many reforms that have increased stability and economic growth across the board, there are some areas that have had little, none, or negative impacts on economic stability.…

    • 425 Words
    • 2 Pages
    Improved Essays
    Read More
  • Improved Essays

    Capital One Advertising Strategy
    • 808 Words
    • 4 Pages

    Capital One Advertising Strategy

    According to the president of commercial banking, Michael C. Slocum, the competitive landscape for commercial and industrial lending is Capital One’s biggest external challenge. The low-interest rate environment of recent years, coupled with the overabundance of investment capital (from banks and non-banks alike), has become a long-term feature of the marketplace. This environment has resulted in a relative shift in bargaining power from lenders to borrowers in the middle market. One of the oft-cited consequences of this shift is the high level of issuance of so-called “covenant-lite” leveraged loans, which lack many of the standard early warning trip-wires (in the form of financial maintenance covenants) that lenders would typically utilize.…

    • 808 Words
    • 4 Pages
    Improved Essays
    Read More
  • Decent Essays

    Edward Jones: Discrimination By Customers
    • 135 Words
    • 1 Pages

    Edward Jones: Discrimination By Customers

    Customers are much less discriminated by their amount of assets under the firm’s management. All customers can get a service from individual broker, although more and more companies increasing the requirement for it, for example, Merrill Lynch provide the traditional personal service by a single broker only to the customers with assets over $500,000. Customers of Edward Jones are offered longer-term, more stable, and less risky products. The firm spends their money for developing its FAs and strengthening the relationship with the local community. Even though its brokers had been prohibited from having a computer in their office until recently, Edward Jones has invested huge amount of capital in its information and operating systems for better…

    • 135 Words
    • 1 Pages
    Decent Essays
    Read More
  • Improved Essays

    The Glass-Steagall Act
    • 152 Words
    • 1 Pages

    The Glass-Steagall Act

    The Glass-Steagall Act included many regulations and rules that touched on multiple aspects of banking. Some of these included: federal deposit insurance, regulation of interest rates on deposits, capital requirements and the separation of commercial and investment banking (Rotemberg). Because of the large volume of topics in the Glass-Steagall Act, for the purposes of this paper, the focus will remain on the part of the act that pertains to the separation of commercial and investment banking. Commercial banking activities and investment banking activities now were forced to be separate. The Glass-Steagall Act gave banks one year to decided which banking activity they were going to focus on.…

    • 152 Words
    • 1 Pages
    Improved Essays
    Read More
  • Improved Essays

    Summary Of Naked Economics
    • 1004 Words
    • 5 Pages

    Summary Of Naked Economics

    The book I read over this summer was Naked Economics: Undressing a Dismal Science by Charles Wheelan. I actually enjoyed the book and it was a very informational book about the overall importance of economics and how to understand them. Over all 12 chapters, Wheelan went into full description of how several aspects of microeconomics makes a difference and modern day examples of uses of economics worldwide. The first three chapters were basically an introduction to the world of economics, which was really useful in giving me a glance at what I will possibly be learning in my upcoming AP Economics course.…

    • 1004 Words
    • 5 Pages
    Improved Essays
    Read More
  • Improved Essays

    Ordinary Families During The Great Depression
    • 464 Words
    • 2 Pages

    Ordinary Families During The Great Depression

    Economically, industrial production in the United States “declined 47 percent and real gross domestic product (GDP) fell 30 percent,” (Romer). After the crash, people…

    • 464 Words
    • 2 Pages
    Improved Essays
    Read More
  • Improved Essays

    The Financial Crisis And The Free Market Cure Summary
    • 1821 Words
    • 8 Pages

    The Financial Crisis And The Free Market Cure Summary

    He believes that government policy is the main cause of the financial crisis. Allison begins by blaming the regulatory environment in the financial services industry, calling it, “…probably the most regulated industry in the world.” (Allison, 5). Then he says that it is no surprise that it is also the source of so many of our economic problems. Allison points out that the technology industry, one of the least regulated industries, has continued to grow well.…

    • 1821 Words
    • 8 Pages
    Improved Essays
    Read More
  • Great Essays

    1980s Housing Crisis
    • 1800 Words
    • 8 Pages

    1980s Housing Crisis

    It is true, that the United States Housing Market can be “unpredictable, volatile and cyclical.” I believe it is crucial to familiarize ourselves with the past mistakes so that we can set up precautions and measures to ensure that another housing disaster does not occur. In the 1980s, we were faced with what was called the Savings and Loan Crisis. According to Kenneth J. Robinson, author of his article, Savings and Loan Crisis, “In the 1980s, the financial sector suffered through a period of distress that was focused on the nation’s savings and loan industry.”…

    • 1800 Words
    • 8 Pages
    Great Essays
    Read More
  • Great Essays

    Interest Rate Parity Essay
    • 1113 Words
    • 5 Pages

    Interest Rate Parity Essay

    Aims & Their Importance Our aim is to find out if there is Interest Rate Parity (IRP) between the USA and China, over an annualised period of 10 years (April 2005-April 2015). We think that this is an important topic as the US are the current global economic superpower, and China is an up and coming power. Also, as there is a lot of trade between the two countries, and we know that china is highly dependant on their exports for GDP growth. A higher Yuan causes exports to slow ( 1% decline for every 10% increase in Yuan), leading to slower economic growth. As economic growth slows, their economy becomes more risky, which adds a risk premium to their interest rates in order to compensate investors for a riskier investment in their economy, as…

    • 1113 Words
    • 5 Pages
    Great Essays
    Read More
  • Great Essays

    Northern Rock Case Study
    • 2301 Words
    • 10 Pages

    Northern Rock Case Study

    During August 2007 in Germany, a rescue package of €3.5 billion was arranged by the German government for the country’s IKB Deutsche Industriebank AG which had also been afflicted by the US sub-prime market crisis. The whole affair, however, was handled much more cautiously with the public being given no serious indication towards the extent of IKB’s plight. The rationale for this type of secrecy, in the event where wide-spread panic has not yet occurred, was set out in a speech by Eddie George, Governor of the Bank of England in 1994 (cited in Financial Stability Review, 1999, p.…

    • 2301 Words
    • 10 Pages
    Great Essays
    Read More
  • Superior Essays

    Argumentative Essay On Financial Literacy
    • 1049 Words
    • 5 Pages

    Argumentative Essay On Financial Literacy

    Robert T. Kiyosaki and best friend Mike, spent their late childhood into their teen years doing the opposite of what all other children were doing on the weekends, or during their free time. Robert and Mike spent their time furthering their education, but not about knowledge geared toward typical school learning. They chose to learn about financial literacy. These boys worked for a genius in the financial field, commencing their journey to being financially literate. Beginning to work at this void of knowledge for the greater majority of americans at such a young age, set them up for greatness.…

    • 1049 Words
    • 5 Pages
    Superior Essays
    Read More
  • Improved Essays

    Personal Narrative: Making A Difference
    • 643 Words
    • 3 Pages

    Personal Narrative: Making A Difference

    Making a Difference What is the meaning of life? It`s no doubt that we`ve all asked ourselves this question. The answer is subjective. It might be 42 or something different.…

    • 643 Words
    • 3 Pages
    Improved Essays
    Read More
  • Brilliant Essays

    Financial Ratio Analysis: Superbury's Supermarket PLC
    • 3632 Words
    • 15 Pages

    Financial Ratio Analysis: Superbury's Supermarket PLC

    After a fall in 2010, Morrison has maintained a consistent sales revenue to capital employed level up until 2012. In comparison with Tesco, Morrison has a higher value; which suggests that the firm is using their assets more productively than Tesco to generate sales revenue. This is also reflected in Morrison’s lower trade payables rate and inventory turnover period. Morrison’s value is not too high to suggest overtrading on their assets (Atrill and McLaney, 2011). This ratio helps ordinary shareholders and banks monitor the efficiency in the use of their funds.…

    • 3632 Words
    • 15 Pages
    Brilliant Essays
    Read More
  • Improved Essays

    Critical Analysis Of Inside Job Analysis: Inside Job
    • 833 Words
    • 4 Pages

    Critical Analysis Of Inside Job Analysis: Inside Job

    INSIDE JOB ANALYSIS Submitted by Yashvardhan Singh, 2014PGP432 Inside Job is a commentary on the corruption in the financial system existing in today’s world. Starting from Iceland to USA, the film examines the key financial and political factors behind the financial collapse of 2007-08. The film starts from the political movement behind deregulation of the 1980s, development of trading instruments like derivatives and bundling of loans and mortgages into what was called Collateralized debt obligations (CODs). The film delves into how the subprime borrowers were given house loans at low interest which in the end led to collapsing of the whole system. The film ends by saying that despite recent financial regulations, the underlying system has…

    • 833 Words
    • 4 Pages
    Improved Essays
    Read More

Related Topics

Ready To Get Started?
Discover
Company
Follow
©2024 Cram.com
Privacy Policy |  About Ads |  Site Map |  Advertise  | 
  • Cookie Settings