ROLE OF INVESTMENT IN BANKS :- The process of financial and investment world including underwriting new stock issues, handling mergers and acquisitions and acting as a financial advisor for large investment funds and personal wealth management for high-net-worth individuals. Some of the major investment banks include Goldman Sachs JPMorgan Chase and Credit Suisse.
Investment Banks Works:-Investment banks help corporations obtain debt financing by finding investors for corporate bonds here the bank’s role begins with pre-underwriting counselling and continues after securities distribution in the form of advice. The investment bank will also examine the company’s financial statements for accuracy and publish a prospectus that explains the offering to investors before the securities are made available for purchase. Role banks’ clients include corporations, pension funds, other financial institutions, governments, and hedge funds, they used to maintain connections the bank has within the market, the more likely it is to profit. The largest investment banks have clients around the globe.
1.Mergers 2.Acquisitions 3.Asset Management
Mergers:- Where general term of consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. It refers to the desks at financial institutions that deal in such activity. The terms “mergers” and “acquisitions” are often used interchangeably, although in actuality, they hold slightly different meanings, here when one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition the buyer absorbs the business, and the buyer’s stock continues to be traded, while the target company’s stock ceases to trade. On the other hand, a merger describes two firms of approximately, who join forces to move forward as a single new entity, rather than remain separately owned and operated. This action is known as a “merger of equals.” Both companies’ stocks are surrendered and new company stock is issued in its place.
Acquisition:-Target companies do not wish to be purchased, are always regarded as acquisitions. Therefore, a purchasing deal is classified as a merger or an acquisition, based on whether the purchase is friendly it was an Unfriendly deals, that highly lies in how the deal is communicated to the target company’s board of directors, employees and shareholders.
Asset Management:-The goal is to grow a client’s portfolio over time while mitigating risk.client’s portfolio by a financial services institution, usually an investment bank, or an individual. Asset Management refers to the management of investments on behalf of others. The process essentially has a dual mandate – appreciation of a client’s assets over time while mitigating risk service is generally available to high net-worth individuals, government entities, corporations and financial intermediaries. Rigorous research is conducted utilizing both macro and micro-analytical tools. This includes statistical analysis of the prevailing market trends, interviews with company officials, would aid in achieving the stated goal of client asset appreciation mostly advisor will invest in products such as equity, fixed income, real estate, commodities, alternative investments and mutual funds. Accounts held by financial institutions often credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund and brokerage services.When individuals deposit money into the account that was placed into a money market fund that offers a greater return that can be found in regular savings and checking accounts. Account-holders can choose between Federal Deposit Insurance Company-backed (FDIC) funds and non-FDIC funds.