Ever heard of those big and prestigious names like Goldman Sachs, J.P.Morgan, Morgan Stanley, Merrill Lynch? If you want to get into the industry, of course you must have - they are all big names in investment banking world. But the real big question is, what do they do exactly?
Investment Banking Services
- Investment Banking Division offers advisory services including Merger & Acquisition Advisory (M&A) and Capital Market Advisory (Financing) with their extensive experience and deep expertise . M&A is the most requested service in investment banking, where the investment banks act as the advisory role, assisting in the structuring and negotiation of a merger/ acquisition between companies. The banks make a decent fee out of advising those companies. Bankers advise on both sides of M&A transactions, representing either the “buy side” or the “sell-side” of the deal. And Financing is a service created for companies who want to have capitals for their operation and development. If the company wants to raise equity, we talk about ECM - Equity Capital Markets, and if they want to raise debt, we talk about DCM - Debt Capital Markets.
Sales and Trading
- This division advises institutional investors such as Hedge Funds, Asset Management firms to buy and sell securities (stocks, fixed incomes, derivatives, etc) OR it can trade as a broker on behalf of a client. Besides, the bank gambles its money in order to make more money. It occurs when investment banks aim to make excess profit by trading stocks, derivatives, bonds, commodities and other financial instruments in its own account - using its own money.
- This investment banking service includes activities like managing clients’ investments, and providing them with the strategies and expertise allowing clients to achieve their goals and secure their financial future.
- This service serves both internal parties and external parties. Timely, integrated analysis and reports with the client's prospects can help attract institutional investors orders as well as promote higher security-trading volumes. Research divisions also provide detailed reports for investment bank's pitching purposes. These reports help convince clients feel secured when they use investment banking services.
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