Introduction to the Investment Banking as a service

Basics of Investment Banking

1. The Big Question Investment banking is a specialized segment of the financial industry that helps corporations, governments, and other entities manage large and complex financial transactions. It acts as a bridge connecting companies that need capital with investors who have funds to invest.

2. Let’s agree on a few basics: Key functions of investment banking include: Raising Capital: Helping companies raise funds by issuing equity (shares) or debt (bonds). Investment banks structure and sell these financial instruments to investors. Mergers and Acquisitions (M&A): Advising companies on buying, selling, or merging with other businesses. This includes valuation, negotiation, and legal navigation. Underwriting: Investment banks guarantee the sale of newly issued securities, like during an Initial Public Offering (IPO), by buying shares upfront and selling them to investors. Financial Advisory: Providing strategic advice on financial restructuring, market entry, and other complex decisions. Market Research and Trading: Offering insights on market trends and facilitating trading of financial assets. Risk Management: Helping companies manage financial risks through analytic tools and hedging products.

3. Investment bankers combine financial expertise, analytical skills, and negotiation abilities to support their clients in achieving their financial goals, often playing a critical role in corporate growth and development.