Tuesday, November 11, 2014

1. Investment Banking Basics

           

                     The basic motivation behind investment bank is to raise money.They raise money by issuing Securities in the form of Equity and Debt. Equity represents ownership of the company and takes the form of stock. Debt is funded by issuing Bonds, Debentures and various certificates.

                          A security is traded in share markets. A security is a financial instrument that signifies ownership in a company (a stock), a creditor relationship with a corporation or government agency (a bond), or rights to ownership (an option).

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