Goldman Sachs Money Market

I am interested in buying stocks of GS. I do not understand how they make their money. Can someone give me a general description on how they invest in the U.S. market and make tons of money? I look Yohoo finance and note that GS has more than 782 billion dollars in cash. How do they make money by keeping money in the trunk?

Investment banking: when a company goes public, they manage their IPO profits to + They are also involved in raising capital made by certain existing public companies

# Investment Management: they just have to manage the investments of some wealthy clients, and they fixed annual membership fee, plus performance fees. They are still a lot of money, even if they do not beat the market!

# Advisory Mergers and acquisitions

It's just to name a few ...

As for the cash in the B / S is a snapshot ... that does not necessarily mean they have kept 782 B in cash for 12 months! Part of this could be a part of some investments matured, or certain expenses incurred on the day of closing. In addition, cash equivalents includes cash, so that these instruments are gaining interest, and very fluid, and associated with low risk.

I checked their latest reports, and they have $ 208 in cash B, which represents about 23% of their assets only ...

This is the same ratio of Citi Group, and close to the ratio of Morgan Stanley.

Secrets of the Jew. But the answer is easy, they are lending money and charging interest.