This article explains the concept of investment banks. It also differentiates investment banks from other financial institutions like commercial banks. Other activities performed by investment banks are also explained in this article.
Articles on Investment Banking
This article provides information about the different departments within an investment bank. It explains what terms such as front office and back office mean. It provides a detailed explanation of the meaning of these terms.
This article explains the various sources of income that investment banks have. It also explains the risks that investment banks have to undertake while generating these different income streams.
This article explains the different types of investment banks. It lists the defining features of each type and also explains what differentiates them from the others. The pros and cons of using different types of investment banks have also been listed down.
This article explains how regulations affect the investment banking industry. It has provided a brief history of the regulations right from the 1930s up until now.
This article explains the concept of conflict of interest from the point of view of investment banking. It also explains the concept with the help of an example. Common steps that are taken in order to avoid conflict of interest have also been listed down.
This article explains the challenges being faced by the investment banking industry. It also explains the root cause behind these challenges and provided ways to mitigate them.
This article explains the concept of deal sourcing. It explains the various sources through which deal sourcing or deal origination takes place. Lastly, it also explains why tracking and managing the deal sourcing process can be challenging.
This article explains what private placements are and how investment banks help companies in making private placements. It also explains why many investors prefer to invest in private placements.
This article explains the concept of precedent transaction analysis. It explains the importance of this analysis as well as explains the steps which are commonly used in this analysis.
This article explains the concept of Qualified Institutional Placements (QIP). It also explains the advantages of this approach. The limitations and procedure that needs to be followed have also been discussed in this article.
This article explains the meaning of underwriting in detail. The meaning is explained in the context of the investment banking profession. Also, the factors considered by investment bankers before they underwrite an issue have also been discussed in detail.
This article explains the concept of prime brokerage in investment banks. It also explains some of the different types of prime brokerages, the risks that they pose as well as the remuneration that they earn.
This article explains the concept of follow on public offer (FPO). It also explains the various types of follow on public offerings (FPO). The rationale used by investors who invest in these issues has also been explained in this article.
This article explains the concept of floatation costs. It also explains why floatation costs vary so much, depending upon the security as well as the company in question. Lastly, it explains how floatation costs affect the capital budgeting calculations of the clients of investment banks.
This article explains the concept of roadshows. It explains why roadshows are an important part of the investment banking process. It also explains how the roadshow is organized as well as the different benefits of the event.
This article explains the concept of bridge loans in investment banking. It explains why bridge loans are considered risky and why investment banks continue to make loans despite the risk involved. It also explains the ethical conundrum associated with bridge loans in investment banking.
This article explains the concept of leveraged buyouts. It also explains how investment bankers help make these buyouts a reality. The various services provided by investment banks have been explained in detail.
This article explains the concept of a pre-IPO placement. It explains how the pre-IPO process is used to mitigate risks. The advantages and disadvantages of the pre-IPO process have been listed in detail in this article.
This article explains the concept of reverse mergers. It explains how it helps companies bypass the IPO process and save money. The advantages and disadvantages of the IPO process have also been mentioned in this article.
This article explains the concept of the Chinese Wall. It also explains how this concept came into being. The efficiency of the Chinese Wall is also discussed in this article.
This article explains the concept of shark repellent tactics. It also explains how investment bankers help clients to effectively utilize these tactics. Lastly, it explains the various types of shark repellent tactics that are used commonly.
This article explains the concept of shark repellent tactics. It also explains how investment bankers help clients to effectively utilize these tactics. Lastly, it explains the various types of shark repellent tactics that are used commonly.
This article explains the purpose of the prospectus document. It explains why this document is prepared by the investors. It also explains the various sections which are included in the prospectus document.
This article continues to provide more details on the prospectus. It provides a list of some more sections which are included by investment bankers in a prospectus document.
This article explains the concept of book building. It explains the various steps involved in the process. It also explains a couple of variations which are commonly used in the book-building process.
This article explains the concept of a Dutch auction. It explains the shortcomings of the book-building method and also explains how the Dutch auction helps to alleviate those shortcomings.
This article explains the concept of issue structure. It explains the various kinds of shares which are issued. It also explains the common types of rules and conditions which the investment banker has to communicate as a part of this issue structuring exercise.
This article explains why initial public offerings are often underpriced. It discusses the various reasons that have been pointed out in studies that have been created to explore this subject.
This article explains what a dual-track IPO process is. It explains the steps involved in a dual-track process. It also explains the advantages and disadvantages of following this process.
This article explains the concept of bought out deals. It explains the advantages and disadvantages of the concept to both the investment bankers as well as the issuing company. The process followed during the deal has also been explained in this article.
This article explains the concept of the greenshoe option. It also explains the process which is followed while exercising this option. Lastly, the benefits of this option have also been listed in this article.
This article explains the concept of delisting. It explains how the delisting process works. The reverse book building process has also been explained, along with the role that investment bankers play in it.
This article explains the concept of junk bonds. It explains why junk bonds are beneficial to investors. Lastly, it also explains how investment banks earn a lot of revenue from junk bonds.
This article explains the concept of merger arbitrage. It explains the different types of strategies that are used in relation to merger arbitrage. It also provides some of the cons related to the strategy.
This article explains the concept of direct public offerings. It also explains how these direct offerings are different from initial public offerings. The advantages and disadvantages of direct public offerings have also been mentioned in this article.
This article explains how investment banks are engaged by the government. It explains the various types of projects for which the service of investment banks are enlisted by governments all over the world.
This article explains the problems associated with the overvaluation of shares after the initial public offer. It explains why the investment bankers must not try to deliberately overvalue the shares once they are listed.
This article explains how investment bankers help promoters retain a controlling stake in their company. The article explains various techniques that are used to increase the promoters' share in the company before the capital raising process begins.
This article explains the concept of global initial public offers. It explains the different types of global IPOs. Then, it also explains the various advantages that companies derive by listing abroad.
This article explains the concept of Special Purpose Acquisition Companies (SPAC). It explains some of the purposes for which Special Purpose Acquisition Companies (SPAC) is used. It also explains the common issues faced with these companies.
This article explains the role that investment bankers play in the derivatives market. It explains how the investment bankers act as intermediaries, originators as well as principals when it comes to the derivatives business.
This article explains the concept of equity crowdsourcing. It also explains the mechanism using which crowdsourcing is done. Lastly, it explains the various challenges which are a part of crowdsourcing.
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