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Research Outline
Prepared for Christian | Delivered April 6, 2020
Investment Banking IT
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Goals
To provide an overview of functions of investment banks, their IT spend, and software used.
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Early Findings
Functions
Underwriting New Stock Issues
Investment banks act as
intermediaries
between companies and investors through initial public offerings (IPOs).
Companies hire investment banks to offer IPOs. Investment banks will "set everything and
list IPO
in a stock exchange".
Merger and Acquisitions
Investment banks help companies to
purchase/join
other companies. They might represent the seller or the buyer in the M&A transaction.
The banks provide funds and also issue
new securities
to the market.
Risk Management
Investment banks help organizations to
manage financial risks
. The banks highlight the risks and how they can be handled.
These risks include "
business risk
, investment risk, legal & compliance risk, and operational risk".
Research
The aim of
investment bank
research is to give a rating of the business and enable investors to make an investment decision.
Types of research include "
equity research
, fixed income research, macroeconomic research", and qualitative research.
Structuring of Derivatives
Investment banks prepare
derivatives
in order to attract investors. The derivatives may be based on single or multiple securities.
Merchant Banking
Investment banks may provide
consultancy
services to companies.
This may include
raising funds
, project management, leasing services, money market operations, portfolio management, and broker in stock exchange.
Investment Management
Investment banks
guide investors
in purchasing and managing their portfolio.
They also prepare
reports
based on performance and use the reports to make decisions on financial securities.
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