Question

1. Describe investment banking activities.

Answer 1

There are various activities which are done by investment bankers and they are as follows-

A. Underwriting of securities is one of the most important activities which is undertaken by the investment bankers because they will be acting as underwriters to the initial public offerings of many companies and they will be offering with various specialised services and security of getting their initial shares sold in the market in exchange of a commission for various companies

B. investment bankers are also engaged into mergers and acquisition activities for various companies and they will be offering with price range within which mergers and acquisitions will be done and they will be trying to act as deal maker between two parties

C. Asset Management is another activity which is undertaken by the investment bankers and they will be trying to manage the Assets of various clients and they will be trying to explore opportunities in the market in increase the rate of return of clients

D. purchase of securities in the secondary market in order to enhance their profits is another way of operation of investment bankers in which they will be trying to trade in secondary market in order to generate profits

E. Equity research facilities are also provided by investment bankers in which they will be providing various securities target price and weightage according to the market scenario and investment advises as well