At some or the other time, we have all
heard about investment banking. But what does investment banking really
mean? We shall find out today. Investment banking is that branch of banking
operations that provides aid to organizations and even individuals in order to
raise capital. Along with that, the investment banker appointed also provides
them with detailed financial consultancy as well.
As a field in the banking universe,
investment banking is known to be as one of the most complicated financial
systems. Be it investment
banking firms in India or anywhere in the world, all these firms
provide a wide array of service. Their role in helping their clients is in more
than one way. Along with that, the type of clients they deal with are also
different. Investment banking firms provide services such as trading securities
or proprietary, assisting and overlooking mergers and acquisitions that they
clients might be dealing with (usually work as advisory), lend money to firm in
need so as to enable them in purchasing assets and also settle some
liabilities, help businesses in restructuring making them more business
efficient and ultimately, helping businesses or their individual clients make
more profit. They also help private businesses in going public.
Most investment banks also provide the
wealth management service. Wealth management
in this century has become a wholesome concept, where it is no more about
investing money in assets that were deemed to be safe earlier such as fixed
deposits or property. While property is still one of the most valuable of
assets, it does not provide liquidity. When investing your money to gain
profits, it is important that the money is divided across different kinds of
assets, those who have good liquidity and others that are stable. Risk factors
also need to be taken into consideration on the above two types.
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