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Capital Markets and Investment Banking Process Paper

FIN 402

May 6, 2012

Alger Marable

Capital Markets and Investment Banking Process Paper Investment banking is a crucial part of our global business environment. Investments, banking, and other capital markets now have a valuable role in business and everyone’s daily lives. There are several strategies and methods that can be identified for effective and productive investment banking processes. Choosing an investment bank or firm can depend on the investor themselves. Some processes and guidelines can vary from firm to firm, this would all depend on the investor and the financial experts and their preferences. Portfolio construction is an important task which involved expertise from a financial expert. Investment Banking and IPO Process Investment banking contains enables several functions for be executed, such as: lending and investing assets, providing advice about investments and acquisitions, research and development about securities, capital markets, and bonds. For example, Morgan Stanley provides global currency, precious metals, insurance, and structured investments that are tailored to market trends and specific risk allocated decision making regarding the individuals portfolio. Investment banking also incorporates other important roles such as analysis of financial performance and operations. Financial transactions can be done as well in investment banks from individuals or corporations. Initial Public Offering Process IPO’s begin with a preliminary valuation that is based on the company's financials; the underwriters will prepare a preliminary valuation of the company. All the underwriters will also factor in the assumed growth rate of the company and industry, as well as the multiples (or price/earnings ratio) assigned to...

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