investment banking.ppt

Banking features explained nicely

1. INVESTMENT
BANKING

2. Presented By:
Sejal Shrimali……….115
Lisha Joy…………….53
Akshita Prajapati…...89
Richa Parmar……….71
Tejal Damor…………24

3. Introduction:
What Does Investment Bank -Mean?
A financial intermediary that performs a
variety of services. This includes
underwriting, acting as an intermediary
between an issuer of securities and the
investing public, facilitating mergers and
other corporate reorganizations, and also
acting as a broker for institutional clients.

4. The role of the investment bank begins
with pre-underwriting counseling and
continues after the distribution of securities
in the form of advice.
An investment bank is a financial
institution that assists corporations and
governments in raising capital by
underwriting and acting as the agent in the
issuance of securities.
An investment bank also assists
companies involved in mergers and
acquisitions, divestitures, etc.

5. Use case of investment:

6. Investment banking activities:
Underwriting
Acting as an intermediary between an
issuer of securities and the investing
public
Facilitating mergers and other corporate
reorganizations
Broker for institutional clients.

7. Role of an Investment Bank:
The major work of investment banks
includes a lot of consulting.
For instance, they offer advices on
mergers and acquisitions to companies
The other arena where they give advice
are tracking the market and determining
when should a company come out with a
public offering and what is the best
possible way to manage the public assets
of businesses

8. The role that an investment bank plays
sometimes gets overlapped with that of a
Private brokerage house.
The usual advice of buying and selling is
also given by investment banks.

9. Purpose of Investment Banking:-
An intermediary between the capital
markets (investors) and corporations
(borrowers)
Offers strategic advice and financial
analysis on Mergers & Acquisitions,
Divestitures, and Capital Structure
Offers Equity and Fixed Income
Underwriting (e.g.. IPO’s, High Yield
Offerings)

10. Provides asset management advice to
high net worth individuals and institutions.
Provides Sales and Trading of Equity
(Stocks), Fixed Income Securities (Bonds),
Derivatives (Options).
Offers research and advice on publicly
listed stocks and bonds to institutional and
individual investors.

11. Structure of Investment Banks:-
Major investment banking divisions
include:
Investment Banking:-
Intermediary between the capital
markets
Advice and analysis on M&A and
Capital Structure
Equity and Fixed Income
Underwriting

12. Asset Management:
Provide asset management services
to investors and institutions
Sales and Trading:
Sales and Trading of Equity (Stocks),
Fixed Income Securities (Bonds),
Derivatives (Options).
Research:
Provide research on public stocks
and bonds

13. TYPES OF INVESTMENT
BANKING:
FD (Fixed Deposit)
MUTUAL FUND
INSURANCE
GOLD

14. FD:
IF you are making investment in FD then
there will be a customer and a worker.
There are two types of FD:
Saving account
Current account

15. Use case of investing trough agent

16. Activity diagram:

17. Activity diagram of invest trough agent

18. Topics to cover in mutual fund:-
Concept
Organization of a Mutual Fund
Advantages of Mutual Funds
Frequently Used Terms

19. Equity based investment:
In equity based investment all the money
is invested in pure stock share market
Debt based investment:
And in debt based investment all money
will be invested government based
security and bonds
The return that we get is non-taxable

20. The NAV (the net asset value) is the unit
of mutual fund. For e.g. the HDFC bank
returns 98%.
If a customer wants to invest in mutual
fund pan card is necessary.
The worker in mutual fund is AMC (asset
management company) and the actor is
the customer.

21. Flow of a Mutual Fund

22. Advantages of mutual fund:-
Professional Management
Diversification
Convenient Administration
Return Potential
Low Costs
Liquidity
Transparency
Flexibility
Choice of schemes
Tax benefits
Well regulated

23. Use case diagram:

24. Activity diagram:

25. Insurance:
Insurance, in law and economics, is a form of risk
management primarily used to hedge against the risk of
a contingent, uncertain loss. Insurance is defined as the
equitable transfer of the risk of a loss, from one entity to
another, in exchange for payment. An insureris a
company selling the insurance; an insuredor
policyholderis the person or entity buying the
insurance policy. The insurance rateis a factor used to
determine the amount to be charged for a certain
amount of insurance coverage, called the premium.
Risk management, the practice of appraising and
controlling risk, has evolved as a discrete field of study
and practice.

26. The transaction involves the insured
assuming a guaranteed and known
relatively small loss in the form of payment
to the insurer in exchange for the insurer's
promise to compensate (indemnify) the
insured in the case of a large, possibly
devastating loss. The insured receives a
contract called the insurance policy which
details the conditions and circumstances
under which the insured will be.

27. Use case of insurance:

28. Gold:
Gold is a wonderful investment idea and so
say the returns on the investment.
Gold has come to be a good investment
option that helps to maximize returns and
minimize the risks.
With stocks and shares recording a dip with
the slightest of excuses, gold now has come
to be a good addition to the portfolio that
helps stabilize the returns and ensures
some level of certainty in returns.

29. Resources
Visit to the bank (yes bank)
Internet
www.google.co.in
www.yesbank.in
Bank manager (vishal raval)

30. Work of group members
All the members has done visit to the
bank.
The collection of the information is done
by Akshita and Sejal.
Searching the information from the net is
done by Lisha and Tejal.
Reporting is done by Richa.

31. Thankyou……