Ch03-04 Primary Mkts & Invst Banks-CM-salaar

Ch03-04 Primary Mkts & Invst Banks-CM-salaar -...

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Salaar - Finance Investment Banks n Underwriting? n Broker-dealer-IPO’s n Investment Banking? n Secondary markets? n Mechanics of Markets?
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Salaar - Finance Primary Markets Learning Objectives n n What is an Investment Banker? n How securities are issued: Process? n What is Arbitrage? n What are private placements? n What are some SEC regulations? n World Capital Mkts considerations
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Salaar - Finance Financial Markets? Primary Markets Primary Market Market for new issues of securities (investment bankers) Issuers receive funds (raise capital) Buyers receive financial claims Initial Public Offering (IPO) Process of initial sale of new securities After initial sale, securities trade in the secondary markets
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Salaar - Finance Financial Markets? Investment Banker Investment Banker Firm specializing in the sale of new securities to the public Key Role of Investment Banks And for Investors, act as brokers or dealers in buying & selling securities.
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Salaar - Finance INVESTMENT BANKERS Work with issuers to bring a new issue of securities to market— legal, accounting, pricing, and so forth Involved in other matters, such as advising firms on mergers and  acquisitions, or reorganizations
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Salaar - Finance INVESTMENT BANKING Investment bankers form a syndicate to sell new securities-- multiple investment bankers working together Investment bankers underwrite  an issue,  Investment bankers profit from the spread between  price they pay & price they sell the issue
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Salaar - Finance Financial Markets? Investment Banking Performed by 2 groups: Securities Firms Commercial Banks Also underwrite securities.
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Salaar - Finance Investment Banking How they make money? Commissions Fees Spread Income Also from: Money management Trading of securities etc.
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Salaar - Finance Financial Markets? Investment Banker Investment Banker Firm specializing in the sale of new securities to the public Underwriting – Buying of securities from issuer Process by which investment bankers purchase an issue of securities from a firm  and resell it to the public PROSPECTUS: Provides info about the IPO to the customers
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This note was uploaded on 05/20/2010 for the course BUSINESS 101 taught by Professor Xyz during the Spring '10 term at Louisiana College.

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Ch03-04 Primary Mkts & Invst Banks-CM-salaar -...

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