Scribd
Upload
22 views7 pages

Investment Banks

Uploaded by

nenzzmaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
22 views7 pages

Investment Banks

Uploaded by

nenzzmaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Investment

Banks
INVESTMENT
An investment is an asset or item that is purchased with the hope that it will generate income or
will appreciate in the future.

BANKS
A bank is a financial institution licensed to receive deposits and make loans. Banks may also
provide financial services.

INVESTMENT BANKS
An investment bank is a financial institution that offers a range of services from financial advisory,
underwriting, trading, raising capital, issuance of shares and bonds, to advisory on mergers and
acquisitions. They are usually involved where large amount of money moving happens.
Structure of Investment

Front Office
 Helping customers raise funds in the capital markets
 Advise on mergers and acquisitions
 Buying and selling financial products with the goal of making money
 Researching industries, companies, and products
 Setting the terms and conditions for any form of deal

Middle Office
 Middle office usually consists of traders, analysts, and managers who are knowledgeable of trading activities but usually
don't engage in market activities themselves.
 Another key Middle Office role is to ensure that the economic risks are captured accurately and on time.
Back office
 Making sure the bank runs smoothly by maintaining databases, and check the day by day operation.
 Every major investment bank has considerable amounts of in-house software, created by the
Technology team, who are also responsible for Computer and Telecommunications-based support.

Example of Investment Banks


• ABCapitalOnline.com, Inc.
• BPI Capital Corporation
• PNB Capital and Investment Corporation
• Mabuhay Capital Corporation, Inc.
• Investment & Capital Corporation of the Philippines
Functions/Role of Investment Bank
Sales and trading
The term refers to the various activities relating to the
Mergers and Acquisition buying and selling of securities or other financial
instruments. Typically an investment bank will perform
In a merger, two organizations join forces to become a new these tasks on behalf of itself and its clients.
business, usually with a new name. In an acquisition, on the
other hand, one business buys a second and generally
smaller company which may be absorbed into the parent
organization or run as a subsidiary. Initial Public Offering (IPO)
 First time offering of stock to the public ▸ Preparation of
prospectus
Underwriting
 Prospectus circulate for review (SEC review the
Underwriting is the process by which investment bank raise
investment capital from investors on behalf of corporations  prospectus) Contract: Right commitment or Best Effort
and governments that are issuing either equity or debt
securities.  Tomb stone
Giving Advice: Raise equity capital:
Advising clients on buying and selling companies, the structuring This includes helping launch an IPO or creating a
of their financial affairs, raising money, economic risk special class of preferred stock that can be placed
management and the purchase of financial products. with sophisticated investors such as Insurance
companies or banks.

Providing financing:
Risk Management:
This is a continuously going activity which involves
Making loans to and purchasing the shares of corporate, and analyzing the market and credit risk that traders are
assisting corporate in finding other parties to do so. Investment taking onto the balance sheet in conducting their
bankers can also arrange financing for companies. Through their daily trades.
relationships with big investment funds, they can help obtain
equity financing (by issuing shares) or debt financing (by issuing
corporate bonds), as well as bank loans
How do Investment Banks make money ?
investment banks get their income from the following sources:

• Fees: charged for advice, providing finance, keeping money available for clients, arranging financing for clients
from other parties, TRADING SERVICES, investment services, and research. .

• Dividends: income from investments made in shares. .

• Interest: income from loans made. . Investments: profits from investments made. .

• TRADING: profit made from buying and selling securities.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy