Rasmussen College
In a few paragraphs, please explain what investment bankers actually do and address the question "What is the purpose of the prospectus when they publicly sell the shares?"
1.) Investment Banker?
Investment bankers are representatives that 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 in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions." The three main avenues investment bankers help companies raise money are Lending their expertise to companies to help determine the best way and best place to raise either debt or equity capital. Preparing all the necessary documents to accurately present investment opportunities for funding and to protect both the company and the investor from any mistakes. Ensuring that all government regulations are followed, as such ignorance could come back to bite them
2.) What is the purpose of the prospectus when they publicly sell the shares?
Usually they loan the money to borrowers and make their profit from the interest charged. Some investment bankers invest money into the stock market, usually a mutual fund. Other investment bankers invest money into new companies and make their profit from the borrower. Investment bankers have the ability to invest into thousands of ventures. Always best to make sure customers always check with your bank to confirm they are litigable investors.
Reference
Investment banker, (n.d.) Retrieved from http://en.wikipedia.org/wiki/Investment_banker