StudentShare solutions
Triangle menu

Capital Markets and Investment Banking Process - Essay Example

Nobody downloaded yet

Extract of sample
Capital Markets and Investment Banking Process

The different types of capital instruments that constitute an investment portfolio have also been described. Lastly, recommendations have been provided regarding the selection of assets for the construction of an effective and efficient portfolio. Investment Banking Process for an IPO Initial Public Offering (IPO) refers to the process of issuing shares by a company to the public for the first time in its history. It is mainly done to raise capital or funds in the form of share capital to be utilized by the company in its business processes. An IPO process typically consists of three key steps. They are: a) Preparation; b) Market approaching strategies; and c) Going public. Investment bankers are selected by the company for the purpose of coordinating the whole process of IPO. Hence, investment bankers form an important part of the IPO process and perform various functions during the whole process. The investment bankers give valuable advice to the company regarding how to go about the whole process of IPO. The underwriting functions related to the IPO are also performed by the investment bankers. ...
The investment bankers are mainly selected by the companies because of their expertise in the field of obtaining the best selling price of the shares to be issued by the companies (O'Rourke, 2007, p. 209). Hence, investment bankers are found to have three tasks to be performed by then in case of IPOs. They are: a) Given the existing conditions in the market, the investment bankers help the companies to design the securities of the companies to be offered by them in a way that are most attractive to the public; b) The investment bankers buy those securities from the companies; and c) They resell those securities to the investors or the public (Besley & Brigham, 2008, p. 83). Asset Class Selection for an Investment Portfolio Portfolio of an investor consists of combination of assets or asset classes. An asset class can be defined as a combination of different types of securities such as shares, bonds, mutual funds, etc. which, taken together, serve the purpose of providing specific contribution to the portfolio of the investors. Such contributions are in the form of risks associated with the securities chosen, the return generated from the assets and covariance of return that exists between other classes of assets. The diversification of assets included in a portfolio can be achieved at two levels. One is while choosing a large number of assets and the other one is while choosing different types of asset classes to form the portfolio. Various factors are needed to be considered while selecting asset classes to form an investment portfolio. They are: a) Expected return of the portfolio; b) Diversification benefits; c) Required scale of investment; and d) Liquidity. The returns that are expected from the asset ...Show more

Summary

CAPITAL MARKETS AND INVESTMENT BANKING PROCESS Table of Contents Table of Contents 2 Investment Banking Process for an IPO 3 Asset Class Selection for an Investment Portfolio 4 Capital Market Instruments Used in Portfolio Construction 5 Conclusion and Recommendations 6 References 7 Investment banking plays a vital role in today’s economy…
Author : powlowskijessie
Capital Markets and Investment Banking Process essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Capital Markets and Investment Banking Process"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Capital Markets and Investment Banking Process

The author states that investment banker’s services are acquired when a company needs to raise funds in the financial markets usually through the issuance of new securities. Investment banks usually perform three tasks: first, they assist the companies in designing the securities which have features that are most appropriate for a certain market.

4 pages (1000 words) Essay
Johnson Control Capital Investment
Johnson Control Systems is a multinational diversified technology company which operates three diversified areas of business like building efficiency, automotive experience business and power solution business. The company has active business operation in more than 150 countries across the world.
5 pages (1250 words) Essay
Quality Assurance in Banking Investment
Quality assurance is the main pillar of any business including profit and nonprofit organizations, government and nongovernmental organizations as it affects the level of success in the business. The assurance of quality in service sector brings the customer back to make use of the services and recommend the same to others which means increased rate of profit.
8 pages (2000 words) Essay
Investment banking & private banking
Economic development involves the improvement in the standards of living also referred to as economic wealth of a certain city, country or region to create a better habitat for its citizens. It involves the movement of the country's economy from a low-income economy to a modern day, high income economy, (Heyn, 1981).
15 pages (3750 words) Essay
Investment Banking
An organization, typically a banking organization, which specializes in imparting such services, is termed as carrying on investment banking. While an entire entity may be devoted to investment banking, hallmarked by bulk banking, it is not unusual to observe investment banking arms within umbrella banking setup.
12 pages (3000 words) Essay
Capital Markets and Investment Banking Process
The different types of capital instruments that constitute an investment portfolio have also been described. Lastly, recommendations have been provided regarding the
5 pages (1250 words) Essay
Critically discuss the view that capital markets created the conditions that led to the new economy bubble and the banking crisis
In the studies undertaken by Chisholm (2003), she further added that capital market is a place where businesses that need financing transact with individual
8 pages (2000 words) Essay
Critically discuss the view that capital markets created the conditions that led to the new economy bubble and the banking crisis
Capital markets pose many benefits to the growth of many countries’ economic status, although they have some injurious impacts (Stiglitz & Ocampo 2008, p. 32). This is because capital markets
8 pages (2000 words) Essay
International Banking Law: Capital Markets and Loans
Farm Turbine plc. The company deals with the manufacturing of components which are required by the small scaled wind turbines. The two graduates namely Emma and Dan
16 pages (4000 words) Essay
Capital markets
This is usually done by taking out such a debt security as a loan, popularly confirmed by a note in addition to offering security to the lender. The most common form of a corporate debt security is referred to as a bond; which
8 pages (2000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment