GRADEMPIRE

Investment Banking and Markets

 

What do Investment Bankers Actually do?

 

Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions."

 

So, the simple answer is, investment banks help companies raise money by:

• Lending their expertise to a company to help it determine the best strategy and the best place to raise either debt or equity capital. Most companies don't have a clue as to how to do this, and a good investment banker can save them an enormous amount of time and money.

• Preparing all the necessary documents to accurately present the value proposition for funding and to protect both the company and the investor from any misunderstandings. This is more than just a business plan. Good investment banks prepare something called a private placement memorandum--or PPM--which is a legal document designed to protect both sides from making a bad investment.

• Ensuring that all government regulations have been followed in the raising of any capital.