Investment bank
From Economypedia.com
Investment bank refers to an institution or individual that behaves as an agent or underwriter for municipalities and corporations engaged in the issuance of securities. A number of investment banking entities are engaged in dealer and broking operations. Investment bankers also offer advisory services to their respective client investors. The principal distinguishing factor of investment banks as compared to their traditional bank counterparts is that they do not accept deposits and grant loans of any kind to individuals.
An investment bank plays a major role in assisting corporate restructuring, mergers and acquisitions and private equity placements.
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[edit] Investment banking
It is described as a banking division that cover business entities managing with creating capital for other companies. Investment banking also apprise companies on business matters like issue and placement of equity securities or stock.
[edit] Investment banking group
An investment banking group is described as a cluster of investment banks that collectively underwrite and distribute new securities. The group may also lend money to a particular borrower. Investment banking groups generally do not exist on a permanent basis. Investment banks are bought together for particular deals that are considered too risky or hard for a single borrower or underwriter to manage. Investment banking group is also known as a banking syndicate or distributing syndicate. [1]
[edit] Underwriting
It is described as the technique by which investment bankers obtain investment capital from investors for utilization by governments and corporations that are issuing securities. Both debt and equity securities are applicable.
[edit] Sterile investment
Sterile investments are those that do not offer any interest or dividends to the investor. Any kind of return is exclusively through capital gains. Gold and silver investments are one of the more prominent examples of sterile investments.
[edit] Undisclosed reserves
The hidden reserves of a financial institution that does not appear on public documents like a balance sheet. They are, however, tangible assets and are accepted as such by banks and other financial institutions. [2]
[edit] See also
[edit] References
[edit] External links
- Article in Yesbank.in
