Investment Environment
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The Capital Markets and Investment Banking Process is new & quite confusing to me. I have to write a 1100 word essay which I analyze the investment banking process. In the paper be sure to address the following:
a. Describe the investment banking process including portfolio construction.
b. Describe the factors that should be considered when selecting among asset classes for an investment portfolio.
c. Describe the capital market instruments used in investment portfolio construction.
d. Make general recommendations for the composition of an investment portfolio. Be sure to include the rationale for your recommendations.
Please be sure to include an introduction, conclusion, and cite references.
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The Capital Markets and Investment Banking Process is new & quite confusing to me. I have to write a 1100 word essay which I analyze the investment banking process. In the paper be sure to address the following:
The investment banking process plays an important role in raising capital for businesses and finding investors for the right type of investment. Every investor needs to exercise judgment when selecting an investment. The investor must select assets in accordance to his goals, his risk bearing ability and the general investment climate.
a. Describe the investment banking process including portfolio construction.
The investment banking process is very different from the commercial banking process. The investment banker acts as an intermediary and matches stocks and bonds with the buyers of stocks and bonds. The investment bank also raises capital for its customers. In other words the investment bankers are approached by companies for raising capital or bonds. The investment banking process involves several steps that the investment banker has to undertake. At the inception, the investment banker assesses the business and carries out the valuation process. In addition, the investment banker carries out research and analysis that determines the growth factors, geographic influences, the strength of the competitors, the market opportunities and market position of the company. In the next stage, the investment banker searches for and identifies the apposite purchaser of the investment. The investment banker prepares the relevant documents to highlight the strengths of the business and presents the documents to the potential buyers. The investment banker remain active throughout the process to ensure that the deal reaches its logical conclusion and both the parties are satisfied with the results.
Portfolio construction involves the selection of investments depending on the funds that are being managed by the investment banker. For instance, an investment banker may use asset allocation methods based on the countries in which the investments are made or the industries in which the investment is made. As globalization ...
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