Wednesday, January 19, 2011


as well as providing advice on transactions such as mergers and acquisitions. 2011 . y Investment Banks profit from companies and governments by raising money through issuing and selling securities in the capital markets (both equity and bond). 2 Wednesday.INDUSTRY PROFILE y An investment bank is a specialized organization that takes in your money and after analyzing the possible risks and economic conditions gives you advice to convert it into more money. January 19.

Wednesday.present. y Study the reasons for moving towards from Banking to Investment Banking. y Steps for improvement in Investment Banking. 2011 3 .OBJECTIVES y Past . & future of Investment Banking . January 19.

acquisitions. January 19. markets. 2011 4 . and other financial transactions y Research and develop opinions on securities. sell. Wednesday. buy. y Lend and invest banks assets y Provide advice on mergers.MAJOR FUNCTIONS FOR CUSTOMERS y Serve as trading intermediaries for clients. and trade stocks and bonds y Manage investment portfolios. and economies y Issue.

January 19.WHO A I V M BA K y Any firm contemplating a significant transaction can benefit from the advice of an investment bank. thereby empowering small to medium sized companies with financial and transaction experience. 2011 5 . y A quality investment banking firm can provide the services required to initiate and execute a major transaction. Wednesday. y Most small to medium sized companies do not have a large in house staff and in a financial transaction may be at a disadvantage versus larger competitors.

subscribing investors to a security co. Product coverage group y Investment management.ORGANIZATIONAL STRUCTURE OF AN INVESTMENT BANK FRONT OFFICE y Investment banking.recent divisions as derivatives. Wednesday.Goldman Sachs capital partner. Eg. & writes reports about their prospects. 1.professional management of various securities. JP Morgan s one equity partners y Investment Research. January 19. y Merchant banking-private equity activity of investment banking. 2011 6 . y Structuring. Industry coverage group 2.

. MIDDLE OFFICE y Risk management-analyzing the market & credit risk y Finance.responsible for an investment bank s capital management& risk monitoring. 2011 7 . January 19. Wednesday.refers to IT department.investment bank s daily operations compliance with govt. y Technology.Conti . y Compliance. & internal regulations. BACK OFFICE y Operations.involve data checking traders which ensuring transfers.

January 19. y The fastest growing segments of the investment banking industry are private investments into public companies Wednesday. y New products with higher margins are constantly invented and manufactured by bankers in hopes of winning over clients and developing trading knowhow in new markets. 2011 8 .CHALLENGES y Investment banking is one of the most global industries and is hence continuously challenged to respond to new developments and innovation in the global financial markets.

y Investment bankers have more competition from foreign banks. Wednesday. January 19.FINDINGS y From the project main finding is the amount of revenue is getting from investment banking services are equal to commercial banking revenues. y Foreign banks are playing more roles in mergers and acquisition deals. 2011 9 .

2011 10 .Wednesday. January 19.