Accounting and Tax Preparation

This segment is comprised as services such as auditing accounting records, designing accounting systems, preparing financial statements, developing budgets, preparing tax returns, bookkeeping, billing, and processing payrolls.

Asset Management

In this segment, companies manage the financial assets of corporate, institutional, and individual clients. Their main services include portfolio management and investment advice.


Companies in this segment accept deposits and make commercial, industrial, and consumer loans.


Companies in this segment act as agents to sell insurance policies and annuities underwritten by insurance carriers.

Private Equity

Private equity is a class of assets that consists of equity securities and debt in companies that do not publicly trade on a stock exchange. These types of investments are typically made by private equity firms, venture capital firms, or angel investors.

Venture Capital

Companies in this industry invest capital in new business ventures. These companies provide money to new, rapidly growing companies with new products or services that appear to be promising in exchange for equity in the company.

The Financial Services industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.

Primary Demand Drivers

  • Consumer income
  • Wealth
  • Demographics

Profitability Drivers

  • Effective marketing

From the Blog Blog RSS

One of the most common ways a private company can generate capital for its business is through issuing equity (i.e. going public).  This is typically performed through an initial public offering (IPO).  An IPO is a two-step process, where a company issues stock in the primary market to institutional investors, after which shares are traded on the secondary market to retail investors.

In late January, a popular Reddit chat named “WallStreetBets” successfully inflated the stock price of many publicly traded companies. The group of bullish traders had been focused on buying stock and placing options on particular companies that hedge funds had been shorting in order to force them into a “short squeeze.” As a result of such an extensive army of traders all buying into these companies within a similar time frame, the WallStreetBets group was able to pump stock prices of companies like Gamestop (GME) from $20 a share to $483 in only two weeks. Now, hedge fund managers are flustered, brokerage dealers such as Robinhood are facing lawsuits, and federal prosecutors are investigating as to whether or not market manipulation or other criminal actions took place.


  1. SelectUSA (Date Accessed: 6/1/2017)