Investment Banking
About Investment Banking
Investment
banks underwrite new debt and equity securities for all types of
corporations, aid in the sale of securities, and help to facilitate
mergers and acquisitions, reorganizations, and broker trades for both
institutions and private investors. Investment banks also provide
guidance to issuers regarding the issue and placement of stock.
Why is Investment Banking important?
The significance of investment banking companies is
•
Role as an Advisor: Raising capital funds is a tedious task for any
organization, where the service of an investment bank comes into play.
An investment firm can help sell the company’s shares by determining a
good price using sophisticated financial models. Financial analysts look
after factors such as earning potential, and the strength of the management
team while selling shares. Investment banks offer advice at the time of
merger and acquisition by advising the management on how worth the
company is and helping in the restructuring of the company.
•
Underwriting Stocks and Bonds: Underwriting is the process wherein the
investment banks take financial risk in exchange for a fee. It involves
conducting research and assessing the degree of risk involved in
insurers’ business. An investment bank buys a certain number of
bonds/stocks at a previously discussed price and resells them through an
exchange. It is the job of the investment bank to prepare the
documentation which must go to the Securities and Exchange Commission
before the company can sell any share. Documentation will comprise details such as financial statements, management information, current
ownership, and future plans.
• Other activities: Apart from
advising and helping raise money for the companies, investment banks
perform other functions as well such as research, trading and sales,
asset management, wealth management, and securitized products.
Who should take the Investment Banking Exam?
• Banking or Finance professionals
• Banking or Finance managers and senior executives
• Investment or Banking consultants
• Any professional with skills and knowledge of investment banking
• Anyone interested in investment banking
Investment Banking Certification Course Outline
1. Accounting Essentials
2. Financial Markets
3. Financial Analysis
4. Capital Budgeting
5. Valuation
6. Start Up Modeling
7. Mergers & Acquisition: