Discussion WK6 - Investment Banker, Investment Analyst,...

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Answer each of the following questions in your initial post: 1. Congratulations! Due to your education, skills you have learned, and hard work, you have successfully managed your fledgling start-up company to the point where you are seriously considering an Initial Public Offering (IPO). Discuss the following questions: What are the purpose, role, and responsibilities of an investment banker? The investment banker is the middleman between the investor and the corporation that needs the funds. They are responsible for, “designing and packaging a security offering”. There main focus is raising capital for companies and government. They are not like traditional banks, the publican not deposit funds or take out loans from them. They also underwrite investments, conduct market research, act as an advisor, provide agency functions, help with mergers and facilitate private placements. Jobs in Investment Banking include: Fund Manger,
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Unformatted text preview: Investment Banker, Investment Analyst, Stockbroker and trader. The biggest reason for a company to go public is it can generate more capitol for growth without the risk of restrictions from private investors. This can also help the company by making the public aware of the products offered. The degree of liquidity will be higher for the investment of stocks. However a company in financial trouble can avoid public scrutiny. A non public company does not have to report its records. Going public also comes at a price with legal fees, attorneys, accountants and filing fees. The other advantage is not reporting to the SEC (Security’s and Exchange Commission). Financing can be a difficult task for entrepreneur. The source of financing usually comes from personal savings, equity or personally secured dept. A company has more choices to include: venture capital firms, private and public offerings and banks....
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This note was uploaded on 09/10/2011 for the course ACCOUNTING IS 160 taught by Professor Taylor during the Spring '11 term at Herzing.

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