Investment Banking
What is Investment Banking
“A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations. Investment banks also provide guidance to issuers regarding the issue and placement of stock.”
An investment bank is a financial institution that helps companies take new bond or stock issues to market, usually acting as the intermediary between the issuer and investors. In addition to the services listed above, investment banks also aid in the sale of securities in some instances. They also help to facilitate mergers and acquisitions, reorganizations and broker trades for both institutions and private investors. They can also trade securities for their own accounts. Investment banks are also responsible for preparing the company prospectus, which presents important data about the company to potential investors. Generally speaking, an investment bank is an institution that advises and raises money for companies, governments and wealthy individuals. Investment banking is predominantly a securities business. Investment bank performance is strongly influenced by stock market performance. Investment banking is split into front office, middle office, and back office activities. Investing in general is the idea of using money to make money. The sub-prime crisis of 2008 has been a hammer blow for pure play investment banks.
Importance of Investment Banking * For corporations - raising its capital. * It facilitates the trading of securities thereby, increasing the liquidity of the securities. * Most of the corporations get advisory services from the investment banks regarding the mergers, acquisitions. * For Individuals- It provides investment opportunities. * Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. * They assist public and private corporations
“A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations. Investment banks also provide guidance to issuers regarding the issue and placement of stock.”
An investment bank is a financial institution that helps companies take new bond or stock issues to market, usually acting as the intermediary between the issuer and investors. In addition to the services listed above, investment banks also aid in the sale of securities in some instances. They also help to facilitate mergers and acquisitions, reorganizations and broker trades for both institutions and private investors. They can also trade securities for their own accounts. Investment banks are also responsible for preparing the company prospectus, which presents important data about the company to potential investors. Generally speaking, an investment bank is an institution that advises and raises money for companies, governments and wealthy individuals. Investment banking is predominantly a securities business. Investment bank performance is strongly influenced by stock market performance. Investment banking is split into front office, middle office, and back office activities. Investing in general is the idea of using money to make money. The sub-prime crisis of 2008 has been a hammer blow for pure play investment banks.
Importance of Investment Banking * For corporations - raising its capital. * It facilitates the trading of securities thereby, increasing the liquidity of the securities. * Most of the corporations get advisory services from the investment banks regarding the mergers, acquisitions. * For Individuals- It provides investment opportunities. * Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. * They assist public and private corporations