Bank Processes

1139 WordsJun 12, 20125 Pages
Capital Markets and Investment Banking Process Paper FIN 402 May 6, 2012 Alger Marable Capital Markets and Investment Banking Process Paper Investment banking is a crucial part of our global business environment. Investments, banking, and other capital markets now have a valuable role in business and everyone’s daily lives. There are several strategies and methods that can be identified for effective and productive investment banking processes. Choosing an investment bank or firm can depend on the investor themselves. Some processes and guidelines can vary from firm to firm, this would all depend on the investor and the financial experts and their preferences. Portfolio…show more content…
Companies and governments use capital markets to raise funds for their operations. Capital markets include primary markets, such as IPOs that are placed with investors through underwriters, and secondary markets, in which all subsequent trading takes place. Government agencies in different countries regulate local capital markets, though some, especially exchanges, play some role in regulating themselves”. Primary markets are used for new issues and secondary markets are used for existing issues for trading purposes. Stocks are bonds are the basic Capital market instruments which are used in both primary and secondary markets. Secondary markets are securities purchases mainly from other investors rather than directly from the issuing companies themselves. Stocks are used as capital market instruments for physical, virtual and auction markets. Bonds are traded in the separate bonds markets. Every capital market instrument is important because it depends on the investors preference. Some are risk seeking and some are conservative who care about steady returns rather than the high risk rate of return. Stocks are the most commonly used counterparts in capital market instruments because they have an unlimited capital and have a higher rate of liquidity compared to bonds. Composition of Investment Portfolio’s Composition of an investment

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