Articles on Investment Banking

What is Investment Banking?

The topic of investment banking is fascinating. This is because some of the biggest banks in the world i.e., Barclays,...

The Components of an Investment Bank

As mentioned earlier, investment banks have been in operation for several years now. This is the reason why, for many...

How do Investment Banks Make Money?

Investment banks perform a wide variety of activities. As we have explained in previous articles, the work performed by investment...

Types of Investment Banks

The investment banking industry is often referred to as if it were homogenous. However, this is not true at all....

Important Regulations in Investment Banking

Most of the investment banks in existence today have been around for several decades. For much of this time, the...

Conflict of Interest in Investment Banking

Investment banking institutions are engaged in multimillion-dollar transactions. This means that if an investment bank is perceived to be operating...

Challenges to Investment Banking Business

Investment banking has traditionally been a lucrative business. Investment bankers have always been in the news for the excessive amount...

How Investment Banks Source Deals?

Investment bankers are intermediaries in the capital-raising process. This means that most of the time, the deals which go through...

A Primer on Private Placements

When we think about investment banks, as well as the activities that they undertake, we tend to think about initial...

Precedent Transaction Analysis

Investment bankers use several different types of methodologies while arriving at the valuation of a company. One of the most...

Investment Banks and Underwriting

The primary function of investment banks is to help their clients raise equity capital. This is often done by initial...

Prime Brokers in Investment Banking

Investment banks all over the world have deep relationships with hedge funds. This is because investment banks often become the...

Follow On Public Offer

The common perception is that companies need to cultivate relationships with investment bankers only if they are unlisted and need...

Floatation Costs and Investment Banking

Whenever companies need to raise money by accessing the public markets, they have to use the services of investment banks....

Roadshows in Investment Banking

Roadshows are an important part of the investment banking process. This is because this is the stage where all the...

Bridge Loans in Investment Banking

Investment bankers play different types of roles when it comes to capital raising. Most of the time, they are middlemen...

Leveraged Buyouts in Investment Banking

Anyone working in the investment banking industry for a few years has definitely come across the term “leveraged buyouts.” It...

Pre-IPO Investing

An initial public offer (IPO) is a method of selling securities wherein the entire lot of securities is offered for...

Reverse Mergers

The profession of investment banking has become quite innovative over the years. Traditionally, raising capital was an expensive as well...

Chinese Walls in Investment Banking

The nature of investment banking is such that investment bankers are supposed to work very closely with their clients. In...

Shark Repellent Tactics in Investment Banking

The profession of investment banking has evolved over the years. Earlier, they were only used when companies wanted to issue...

Prospectus in Investment Banking – Part 1

The job of an investment banker includes enabling the flow of information between the company and its investors. When a...

What is Book Building – The Book Building Process

Whenever a company wants to sell its shares in the open market, it faces a very important question. The question...

Dutch Auction

Book building has been one of the most widely used methods in the underwriting process. However, over the years, companies...

Structuring a Public Issue

One of the responsibilities of an investment banker is to set up the basic ground rules which will have to...

Investment Banking Issues: Why Do IPOs Get Underpriced?

Every year investment bankers help several companies raise capital from the markets. They help these companies in issuing securities and...

The Green Shoe Option in Investment Banking

In many cases, IPOs are thought of as being underpriced. This means that as soon as the IPO is listed...

Investment Banking and Delisting

It is common knowledge that investment bankers help a company when they want to list their shares on the stock...

Junk Bonds in Investment Banking

Investment bankers help their clients raise money by selling equity as well as bond securities on the securities markets. Investors...

Merger Arbitrage in Investment Banking

In the past few years, the number of mergers and acquisitions has increased drastically. This can partially be attributed to...

Direct Public Offerings: Threat to Investment Banking

The costs of issuing an initial public offer can be prohibitive. There are many companies across the world that want...

Investment Banks and Governments

Governments all over the world regularly engage in high-value financial transactions. They often need the help of experts in order...

The Pitfalls of Overvaluation

It is often believed that the role of the investment banker is to sell the company for the highest price....

How Investment Bankers Help Promoters Retain Control?

Companies want to go public because it helps them raise cash, which can be used for further expansion. However, the...

Global Initial Public Offers

Ever since the era of globalization, the world has started operating like one single market. The concept of a global...

Investment Banking and Special Purpose Acquisition Companies (SPACs)

Special Purpose Acquisition Companies (SPAC) have become all the rage in the investment banking industry. They are not a new...

Role of Investment Bankers in Derivatives Market

The derivatives department is a highly specialized department in the modern-day investment bank. This is because, in terms of size,...

Equity Crowdfunding

The Shortcomings of an IPO The initial public offer model works well for big companies. However, as far as smaller...

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Articles on Investment Banking