Question

What is an investment banker and what is their part in Financing the Global Firm?

Answer 1

Ans - Investment Banker act as middleman between the investors, who have surplus money to invest and the companies, which needs capital for expansion and smooth running of business.Nowadays, banks & financial institution are providing services of investment banking to goverment, institutions and large corporations. However, investment banking companies charges fees or commission to their client for serving them.

Investment Banker plays an important role in financing the global firm by providing their wide range of advisory services in -

1.Assisting in arranging finance by underwriting services - Investment Banker helps companies in raising capital through capital market by selling stocks and bonds through IPO. In process of raising money for corporation investment bankers provide underwriting services by marketing of the issue to investors, create prospects through book building process, and also handles all compliance and legal matter related to IPO with regulatory bodies.  

2. Advisory services in merger & acquisition - Investment Banker helps in merger and acquisition transactions to both acquiring and selling company. In M&A process, investment bankers provides advisory services in valuation of firm and in negotiating deal price which is favourable for both selling and acquiring company.

3.By Asset management services - Investment Banker also manages the portfolio of their clients by providing asset management services by taking care of their revenues and investing in profitable channels.

4.By Equity Research services - Investment bankers also assist firm in financing through their research services. They recommend on the basis of their research profitable stocks to buy also provide various profitable strategies to make money from secondary market.

Here is solution of your question All the best