Investment Banking For Dummies (For Dummies Series)

Product Information

Investment bankers perform services for customers and collect money in a number of ways, include the following: Although venture capitalists can be a critical place for young companies to raise money, it comes at a steep price if the company pans out. The venture capitalists end up owning a big slice of the company, which reduces the ultimate payout for the entrepreneur. Warning Danger! Danger! Investment banking is full of perils and possible screw-ups. We flag you to these pitfalls so you can avoid taking down a 100-year-old investment banking firm with a multi-billion-dollar blunder. Strategies for different types of risk management: market, credit, operating, reputation, legal, and funding Debt capital: Some investors have no interest in owning a piece of the company, but they’re more than willing to lend money to it, for a price. That’s the role of debt capital. Investment banks help companies borrow money by issuing bonds, or IOUs, that are sold to investors. The company must pay the prearranged rate of interest, but it doesn’t give up any ownership of the company. If a company falls onto hard times, though, the owners of the debt have a higher claim to assets than do the equity owners if a liquidation of the company is necessary.

Investment Banking For Dummies, 2nd Edition | Wiley Investment Banking For Dummies, 2nd Edition | Wiley

To be a successful investment banker or finance professional, immerse yourself in your industry and keep learning. Why? Because in this everchanging world, macroeconomic and technological shifts are constantly changing the landscape and throwing curveballs. Investment banks may seem like financial behemoths that have their hands in just about any matter that involves large sums of money. And to a large degree, that’s true. Investment banks are usually involved in some fashion when it comes to financing major projects, conducting trading in financial instruments, or developing new ways to generate capital. The same goes for the gray boxes of text known as sidebars. In the sidebars, you’ll find interesting but slightly tangential material that you can skip if you want. We found the information interesting enough to put it in the book, but it’s not essential to your understanding of the topic at hand.Discover the role investment banking plays in the financial system so you can understand the types of services that are provided in the economy.

Investment Banking Manual - Corporate Finance Institute Investment Banking Manual - Corporate Finance Institute

Wrap your head around the complicated world of investment banking with this understandable and comprehensive resource

3. The Intelligent Investor

Investment bankers often find themselves playing the role of a corporate matchmaker. A big part of the job description is finding new ways to raise money and help companies restructure themselves in a way that makes them more profitable for their owners. The book covers all the crucial topics required to understand the fundamentals of the industry, including: But in many ways, the idea of an IPO is a bit of a misnomer, because they’re not entirely public. Investment bankers typically follow a process that can make it difficult for regular investors to get a piece of an IPO. Equity Research – The research department of an investment bank comes up with various research reports on the industries or other companies and helps its clients with investment decisions.

Investment Banking Books Every Banker Should Read The Best Investment Banking Books Every Banker Should Read

From nearly being wiped out in 1929 to reaching the pinnacle of global finance, this book showcases how the firm has thrived by fostering a distinct company culture focused on finding creative solutions to problems by always focusing on their customer. Institutional client services: The biggest part of Goldman’s business is what it calls institutional client services. Here, the firm arranges and helps conduct transactions for clients who want to buy and sell everything from bonds to foreign currencies and commodities, in a process called market making. Typically, the clients of this part of the business include big financial institutions, governments, and companies. In this book, we tell you what really happens in the investment banking world. This chapter introduces you to the high-level reality of what investment banking is. Here, you see how Wall Street really works. In this chapter, you see that although investment banking can be extremely lucrative, it’s also an important facilitator of economic growth and traces its roots to the idea of putting money into the hands of the dreamers and creators. What Investment Banking IsThe book comprises his journey, life principles, and work principles. Dalio covers over 500 principles and sub-principles to help readers succeed in life and work. When a company is young, financing can get pretty dicey. It’s not unheard of for very early investors to pay for equipment and salaries of employees with any money they can get their hands on. Charging up credit cards, hitting up family members for loans, and tapping retirement savings are all ways that an entrepreneur with the burning passion to start a company gets the process started. Starting a company takes a tremendous amount of money. Another part of the front office is the part of the business involved in conducting research on companies. The front office often employs sell-side analysts, whose job it is to closely monitor companies and industries and produce reports used by large investors trying to decide whether to buy or sell particular securities.

Investment Banking? - dummies What Is Investment Banking? - dummies

Given how desired shares of hot IPOs are, it’s not surprising that investment bankers hold them very closely. Investment bankers’ role in the IPO process remains one of their most high-profile functions. The investment bankers are in charge of helping the company promote itself to prospective investors and determine how much to sell the shares for. To draw your attention to certain kinds of information, we use a series of icons. Here’s what the icons mean: Seven figure bonuses, generous expense accounts and adrenaline-filled trading sessions. All of these come to mind when one thinks about investment banking. I have no doubt that these alone attract thousands of bright graduates into the competitive industry each year. The Journey in an Investment Bank takes work. The career of an investment banker progresses along a fairly standard path. Investment banking positions from junior to senior are:

9. The Partnership: The Making of Goldman Sachs

We wrote this book not only to help you understand what’s done on Wall Street, but also to show you how to use some of the financial tools that help measure financial performance. After reading this book, you’ll know how Wall Street works, and how to put its secrets to work for you. About This Book