Question

Describe the investment banking process. What is an investment banker? What role do they play in the stages of raising capital? How do they get compensated? What's the role of the investment banker who is underwriting an IPO? etc etc.

Answer 1

Investment banking process is related to various kinds of functions like underwriting of the securities and providing with equity analysis as well as helping in mergers and acquisitions and they will not be allowed to act as a commercial banker.investment banking process is one of the process followed by investment bankers by acting as an intermediary and helping various market participants in order to achieve their objectives.

Investment banker is a person who is working into the investment banking industry and he is is doing various kinds of work related to the financial market and be it underwriting or merger or acquisition along with equity analysis.

Investment bankers will be playing the role of the underwriter in order to raise the capital from the financial market by helping the company of a with initial public offering in the primary markets.Investment bankers will be getting compensated through issuance of a commission by the company and they are also benefited by under pricing of the initial public offering.

Role of the underwriter who is doing the initial public offering is to getting the security fully subscribed by the public for taking the the responsibility of getting the shares fully subscribed and getting listed in the market at a better rate. He will also make sure that all the compliances are adequately followed.