A specialized division of the banking sector that caters to the creation of wealth and capital for quasi-government entities, government bodies, and small, medium and large business houses is referred to as investment banking. When you think of a career in the domain, a basic graduation in finance and accounting is a requisite. Let us look at the role of investment banking from a simplistic point of view.
Let’s say that a company is not liquid anymore but has the trappings of getting back on its feet with a little help. The investment banking section can offer reorganization structures to facilitate the enterprise from going down the rabbit hole. It helps in the placement of monies in the right direction. However, if there is a solution to a merger, the company can be acquired by another with a little help based on the net worth to structure a deal.
From the point of view of a new entity, the investment banking division aids in the sale of securities to pinnacle the business ahead, by capitalizing and realigning stocks by individual players. As an intermediary, the department ensures that they have the finger on the pulse of the markets so that the client assigned to them is not bogged down with political embargo. Sebastian Greenwood once quoted Brian Tracy who said, “I’ve found that luck is quite predictable. If you want more luck, take more chances. Be more active. Show up more often”. An investment banker will capitalize the stock that you own and help you brave the economic climate.
Through fair pricing of stocks and shares of the client, based on the proxy assigned, to ensure that revenue is a part of the program, the intermediary ensures that they navigate the wheel in the right direction. The role of the investment banking division, in this case, must be accurate about the stocks and shares market to ascertain whether it is a hit or a miss to diversify the financial portfolio. The objective is to analyze the situation without incurring a risk to the bank or the customer as overvaluing or undervaluing the stocks can result in negative cash flow.
Most investment bankers are the first to make a play for an IPO taking into account competition. The objective of getting into the domain of investment banking is not an easy ride, but once you have the smarts in the direction, you stand to gain. Sebastian Greenwood once quoted Philip Sidney who said, “Either I will find a way, or I will make one”.
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