Investment banking 101 - Study guides, Class notes & Summaries

functions: acting as an intermediary for capital raising, and as an advisor on M&A transactions and other major corporate actions. As an intermediary, it connects companies that need capital with investors who have capital to spend. It facilitates this through debt and equity offerings. As an advisor, an investment bank counsels companies on such corporate actions as mergers, acquisitions, spinoffs, and restructurings. Q: WHAT EXACTLY DO INVESTMENT BANKERS DO? - Answer investment banking is t...

Loan Processing - ANSWERSThe process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decision Underwriting - ANSWERSThe process of evaluating a borrower's loan application to determine the risk involved for the lender Funding - ANSWERSThe process of transferring funds to a title or escrow company for disbursement Servicing - ANSWERSSending monthly payment statements and collecting monthly payments, maintaining payment r...

What are the advantages of a mixed economy? - Answer mirror those of the market economy in that goods and services are distributed where they are most needed. Prices are set by supply and demand, innovation is encouraged, and capital is allocated to the businesses that are the most innovative and efficient. A mixed economy minimizes the disadvantages of a market economy by having a more significant role for government intervention in the market. What are the disadvantages of a mixed econom...

What are the three main financial statements and what do each consist of? - Answer Income Statement, the Balance Sheet, and the Statement of Cash Flows Income Statement -a company's revenues, costs, and expenses = net income Balance Sheet -a company's assets, liabilities, and equity = a representation of the company's financial health/position on one particular day in time Cash Flow Statement -starts with net income from the income statements - adjustments for non-cash expenses (c...

CORPORATE FINANCE THIRD EDITION JONATHAN BERK STANFORD UNIVERSITY PETER DEMARZO STANFORD UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Rebecca, Natasha, and Hannah, for the love and for being there —J. B. To Kaui, Pono, Koa, and Kai, for all the love and laughter —P. D. Editor in Chief: Donna B...

US, UK, and EU Traditions in IB (history) - Answer US - banks offer underwriting services ('investment banks') UK - banks offer equity training services ('merchant banks') EU - banks offer universal services ('banks') Definition of Investment Banks - Answer A system of financial services produced by financial intermediaries - focus on big corporations, other financial intermediaries, other public authorities/administrations Essentially a system of different businesses Approach is ...

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Exporting is the purchase of products from another nation. Answer: True False 2) Falling political barriers and new technologies have made it increasingly difficult to trade with other nations. Answer: True False 3) When a nation is importing more than it is exporting, it has a positive balance of trade. Answer: True False 4) A balance of trade refers to the buying, selling, and trading of goods and ser...

TEST PLANNING TABLE FOR CHAPTER 3 Learning Objective Easy: Knows Basic Terms and Facts Moderate: Understands Concepts and Principles Challenging: Applies Principles 3-1: Discuss business opportunities in the world economy 1, 2, 9, 12, 93, 99, 100 3, 4, 5, 6, 7, 8, 10, 11, 94, 95, 96, 97, 98, 101 102, 103 3-2: Explain the key reasons for international trade 13, 18, 19, 20, 104, 105, 112, 115 15, 16, 17, 21, 22, 23, 106, 108, 114 14, 24, 25, 107, 109, 110, 111, 113, 116, 117, ...

what are the 2 main differences between investment and commercial banks? - Answer 1) there is no cheap financing for investment banks (client deposits) 2) investment banks work on large scale and sophisticated transactions banks that perform commercial and investment banking services are called __ - Answer universal banks Glass-Steagall Act 1933 - Answer Universal banks have more information about both sides (commercial and investment side), this creates a risky situation because banks ma...

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Global GDP surpassed 80,000 USD (billions) in 2015. Answer: True False 2) Global GDP surpassed 100,000 USD (billions) in 2015. Answer: True False 3) According to the IMF, Canada's estimated GDP for 2014 was greater than Mexico's. Answer: True False 4) According to the IMF, Canada's estimated GDP for 2014 was greater than Russia's. Answer: True False 5) According to the IMF, Canada's estimated G...