Investment banking is a branch of finance that creates new debt and security instruments, underwrites IPO procedures, merges or acquires firms, and assists high-net-worth people and institutions with high-value investments. This method is more complicated than it appears since these institutional investor customers frequently place massive orders that, if completed all at once, would disrupt market pricing.
2. www.avendus.com/indi
Investment banking is a branch of finance that creates new debt and security
instruments, underwrites IPO procedures, merges or acquires firms, and assists high-
net-worth people and institutions with high-value investments. This method is more
complicated than it appears since these institutional investor customers frequently place
massive orders that, if completed all at once, would disrupt market pricing.
Investment Banking: In a Nutshell
3. www.avendus.com/indi
Core Activities of Investment banking are heavily influenced by individual and team performance as well as
market conditions.
Investment Banking Division:
Investment banking Division (IBD) is often categorized under two main types, one being industry coverage
and second being the product areas. Industry coverage groups specialize in a certain field, such as medicine,
industrials, or technology, and maintain ties with firms within the industry to bring in business for a bank in the
form of mergers and acquisitions, financing, and equity raising (IPOs). Product coverage groups focus on
financial products such as mergers and acquisitions, leveraged financial services, government expenditures,
wealth management and leasing, corporate finance, restructuring, equity, and high-grade debt, and generally
work and collaborate with industry players on a client more complicated and tailored needs near the end of a
deal process.
What are the Core Activities performed in an Investment bank?
4. www.avendus.com/indi
Full-service investment banks are significant multinational financial institutions that
provide a variety of services to their clients. These financial institutions provide merger
and acquisition experience in both local and sophisticated international deals. M&A
groups, for example, handle transactions such as divestitures, leveraged buyouts,
acquisitions, joint ventures, corporate restructurings, and mergers. Other similar
services include takeover resistance and shareholder relations management.
Mergers & Acquisitions (M&A):
5. www.avendus.com/indi
Simply put, they purchase and sell commodities. These could include financial
commodities like stock options, foreign currencies, or commodities like gold, cattle, oil,
or natural gas. Brokers or dealers are common terms for salesmen. A substantial chunk
of their employment entails contacting existing or new clients to offer them financial
items such as stocks and bonds. Traders are individuals who purchase and sell in the
financial markets. They gain access to the markets via a network of computer monitors,
each of which displays the movement of stocks, bonds, commodities, and several other
financial items.
Sales & Trading:
6. www.avendus.com/indi
Asset management is the administration of securities and other assets on behalf of an
investor. The investor can be an individual as in private wealth management, a business
including those actively involved in the finance sector, such as investment banking
firms in India and hedge funds, an organization whether non-profit or profit, or any
other prospective owner of a portfolio of assets. In the case of wealth management, this
is sometimes referred to as the private bank, indicating more individualized client care
than is seen in mass-market retail banking. Private banking is reserved for those with a
substantially higher net worth
Asset Management:
7. www.avendus.com/indi
The research section evaluates companies and publishes assessments on their prospects,
frequently with buying, selling, or holding evaluations. While the research section may
or may not generate money, its resources are employed to help traders trade, salespeople
pitch ideas to customers, and investment bankers cover their clients. Furthermore,
outside clients are given investment advice with the intention that these clients may
execute proposed trade ideas through the bank's sales and trading section, generating
income for the company.
Equity Research
