Concept of Investment Banking

Concept of Investment Banking

Bank is based on the objective of providing its clients with advice , as well as financing strategic management related to the merger, restructuring, among other operations carried out by large companies, as well as managing the introduction from your customers to the stock market.

The property transactions that these banks perform are intended to increase the bank’s capital, obtaining great benefits for both the entity and its customers, for this they use different forms of savings in which they spend both their possess money and the money of the large enterprise.¬†You can also take help from some experts like like Mark Attanasio Toronto and Donato Sferra Toronto who are working as Financial Services Executive in Toronto and has helped many business owners.

Corporate functions of Investment Bank:

Investment banks have many functions of this type, for example, advising or consulting their clients, in any aspect related to their functions, such as the issue of securities, or the diversification or structuring of investment portfolios. However, all the responsibilities of said banks must be in accordance with the stipulations contained in the laws.

Another of the activities that fall into this category are the operations known as underwriting, where investment banks fulfill the role of intermediaries designing the market for both supply and demand.

On the other hand, with regard to the management of portfolios, investment funds offer companies the administration of the same, as well as pension funds, mutual or individual funds, among other related transactions.

Transaction management:

  • This type of management is another of the characteristic functions offered by investment banks to their clients. This category includes all activities related to mergers, restructuring, and acquisitions that large companies carry out in order to improve their profitability.
  • In these types of transactions all the criteria mentioned above are put into practice, for example, the knowledge of the industry, the market and the needs of the companies, as well as the discretion in the operations that are carried out.
  • All these efforts are based on the objective of improving the profitability of customers in the future. One of the most controversial activities that fall into this category is acquisition and merger.
  • In many countries these actions managed by investment banks are the most profitable, but they are also the most controversial and are an important part of those strategies for the economic consolidation of the participants.

Financing new Projects:

  • Financing projects is another of the activities that characterize investment banks, in these activities the bank intervenes to make the design attractive to get partners who can provide the necessary resources for the project.
  • As part of this function, it is essential that the investment bank has good relations with international mechanisms that offer different sources of financing. In addition, the bank is also in charge of designing a financial structure in accordance with the need to find the sources for the necessary financing intervene in the negotiations, perform the procedures related to the guarantees demanded by the investors, and to carry out the contracts, among other implicit activities within this important function.

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