1. Develop a business plan for an on-line brokerage firm: Students in this group will research
the start-up process and regulatory procedures for creating a start-up on-line stock brokerage firm.
Essentially, students will determine the how many employees to hire, what their qualifications
must be, what SEC, FINRA and other regulatory requirements (including examinations) must be
fulfilled for those employees, etc. This group will also determine office and technological
requirements and estimate the costs on a periodic basis for starting up the firm. In addition, students
will estimate future revenues and determine the viability of the start-up firm. Students in this group
may wish to visit the web sites of on-line brokerage firms, including that of E-Trade at
https://us.etrade.com/home. Other useful web sites may include http://www.sec.gov and
2. Develop a business plan for a student-managed credit union at UCR: Students in this group
will research the start-up process and regulatory procedures for creating an NCUA (preferably
student-run) credit union. Essentially, students will determine how many employees to hire (most
can be student volunteers), what their qualifications must be, what NCUA and other regulatory
requirements (including examinations) must be fulfilled for those employees, etc. This group will
also determine office (Assume that the university can donate space), lending and capital-raising
activities and technological requirements. Various university credit union sites and the NCUA web
site, http://www.ncua.gov/, probably are most helpful in this process as might
http://www.sba.gov/starting_business/planning/basic.html. In addition, the group will estimate the
costs on a periodic basis for starting up the credit union and determine how much start-up capital
will be required. In addition, students will estimate future revenues and determine the viability of
the start-up firm.
3. Prepare a (mock) prospectus for distribution to the SEC and the general public on behalf of
an IPO offering for a chain of family restaurants. The purpose of the IPO is to raise $20,000,000
to open 50 new sites though out the west coast of the U.S. The IPO should conform to current SEC
regulations. In addition, a risk analysis should be performed on the company and a valuation should
be performed on the shares to be offered. Start by having a look at http://www.jbv.com/initial-
public-offerings-ipos. Also, the following might be helpful for tracking down sample prospectuses:
4. Undertake and prepare a written report of research concerning finance for cooperative
businesses. Cooperatives are business organizations that are owned by individual- or business
stakeholder-members other than outside investors. These stakeholders can include employees and
customers of the cooperative. Cooperatives frequently benefit from government policy, including
tax benefits or other incentives. The typical economic cooperative emphasizes worker participation
and control, local ownership and control and community development. In the U.S., cooperatives
have been quite common in the agricultural industries, providing farm supplies such as grain and
fertilizer and have owned brands such as Sunkist, Florida’s Natural and Land O’Lakes.
Cooperatives have also been major participants in the hardware retail business, power provision,
college textbooks and grocery wholesalers. Mutual insurance, credit unions and savings
institutions are also commonplace in the financial industries. In fact, the first successful
cooperative in the United States was the Philadelphia Contributionship, a mutual fire insurer
founded by Benjamin Franklin in 1752. Your paper should focus on two related issues: financial
management of cooperatives and the governance of cooperatives.
It separated to 6 part:
Start up process
Qualifications of employees we want to hire
Office and tech requirements
Cost of periodic basis for start-up
Future revenue and determine viability
Industry would be online or e-commerce. The business model would be similar to companies like Fidelity, Ameritrade, Charles Schwab so you would probably look those up.
The costs associated with this service might as well be per quarter or per year so some sort of basic expenses like software, office space, wage expenses would probably be good. You can probably look at SEC 10-k’s of the companies you look up and see how much revenues and expenses they had in their starting years to predict future growth.