Activities of Investment Banking Essay

The enthronement bank is the financial institution which assists the governments, corporations and the individuals in raising the capital by acting or underwriting as the agent of the client in government issue of securities. The investiture bank can also help the companies which atomic number 18 involved in acquisitions and mergers, and offer adjuvant services like the trading of the derivatives, market making, foreign exchanges, instruments of the fixed income, equity securities and commodities.Unlike the retail banks and commercialized banks, the investing banks dont take the deposits. There are commonly two main carry in the process of investment banking. Trading the specie for securities like market making, facilitating transactions or for cash or for the promotion of the securities like research, underwriting is known as the sell font, while correlate with the mutual funds, hold over funds, pension funds and investment public comprises the buy side. Various companies have sell and buy side components.What are the main activities of the investment banking?The investment banking is generally split into back office, middle office and introductory office activities. While the big service investment banks provide all the channels of the business twain buy side and sell side. The little sell side investment companies like as the lowly broker dealers and the boutique investment banks focus on the trading/sales/research and investment banking respectively.The investment banks also provide services to both the investors buying securities and the corporations issuing securities. For the corporations, the investment banking provide information on how and when to place the securities on the open market, this activity is very much important to the reputation of any investment bank. Thus, the investment bankers play a key role in issuing the new offerings of the securities.Other activities of the investment bankingApart from the main activities, there ar e some additional activities, in which the process of investment banking is involved. These are Global transaction banking This part is the division of investment banking which offers custody services, cash management, security brokerage and contribute services to various institutions. Hedge funds with Prime brokerage is especially a risky as well as profitable business. merchant banking This process is also known as the very personal banking. The merchant banks provide capitals in exchange for the share ownerships and also provide information on scheme and management. The term merchant banking is also used to define the private equity part of any company. Investment management This service offers professional management of several securities like bonds, shares and of other assets like real body politic to meet with certain goals of investment for the profit of the investors. These investors can be institutions like pension funds, insurance companies, corporations and galore(po stnominal) more or the private investors. The investment management division of an investment bank is generally shared out into separate groups, often known as Private Wealth Management and Private Client Services. Merchant banking is also a name used to describe the private equity side of a firm.Merchant Banking prehistorical and Present Current examples include Defoe Fournier & Cie. and JPMorgans One Equity Partners and the original J.P. Morgan & Co. Rothschilds, Barings, Warburgs and Morgans were all merchant banks. (Originally, merchant bank was the British English term for an investment bank.)Referencehttp//classof1.com/homework-help/finance-homework-help/