What is investment banking all about?

Investment banking is the division of a bank or financial institution that serves governments, corporate a view to invest and contribute in the banking sector.

1 Upvote 1 Upvote 0 Downvotes 1 Comment

• • Report Abuse
• Comment

<p>Investment banking is a type of banking that&nbsp;organizes large, complex financial transactions such as mergers or initial public offering (IPO) underwriting. Investment banking involves&nbsp;advising organizations on mergers and acquisitions, as well as a wide array of capital raising strategies. Markets is divided into "sales and trading" (including "structuring"), and "research". It is a special segment of banking operation that helps individuals or organisations raise capital and provide financial consultancy services to them.</p>

0 Upvotes 0 Upvotes 0 Downvotes

• • Report Abuse
• Comment

The term Investment Banking has gone through a sea change in the last two decades with it becoming almost synonymous with Financial Services. With the scope of commercial bank and traditional investment banks constantly overlapping, there is no one definition. With the repealing of the historical Glass Steagall Act of 1933 in 1999, the walls separating investment banking activities and commercial banking activities dissolved. Even traditional retail banks like ICICI and SBI have investment banking arms today. The crisis of 2008 however has thrown light on these conflicts and chinese walls are being adhered to more carefully now. The term Investment Banking however is a term still used loosely to describe any institutional financial services offering. Traditional Investment Banking comprises of Mergers & Acquisitions (M&A) and Corporate Finance Advisory. In a broader sense however, it can also include the entire Securities industry, which includes Sales & Trading, Clearing and Corporate Support. Extending their scope even further, investment banks now offer Asset Management and Private wealth managed services as well. At its heart however lies the job of the intermediary, the key link between buying and selling, raising and lending.In the series we intend to break down Investment Banking not just into its academic components but its functions and careers. We will profile Front Office Analysts and Private Equity Analysts to understand what they do everyday. In our next installment we will understand the various functions, the concept of Buy Side and Sell Side and delve a little into the world of Mergers & Acquisitions. The Bombay Stock Exchange is the oldest exchange in Asia and can be traced back to the 1850s when four Gujaratis and one Parsi stockbroker would gather under the banyan trees in front of Mumbais Town Hall. While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first venue of the earliest stock broker meetings in the 1850s was in rather natural environs under banyan trees in front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their venue to another set of foliage, this time under banyan trees at the junction of Meadows Street and what is now called Mahatma Gandhi Road. As the number of brokers increased, they had to shift from place to place, but they always overflowed to the streets. At last, in 1874, the brokers found a permanent place, and one that they could, quite

0 Upvotes 0 Upvotes 0 Downvotes

• • Report Abuse
• Comment