Initial Public Offerings Paper
•The role of the investment banker and underwriter
•The role of an originating house and a syndicate
•An explanation of the pricing of the issue -- ME
•A discussion of some of the risks involved in the public offering and how the securities laws deal with them
•A discussion of any foreign exchange risks the company can face with your ideas about how to mitigate them
Investment bankers play essential roles when it comes to helping companies raise money in the form of selling securities. One may even refer to an investment banker as the “middle man” who assist companies in seeking potential buyers of their securities. An addition to the function of an investment banker they are also defined as, “They assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions” (What Exactly Is An Investment Banker, 2007). At the point when the company in need of funds seeks out an investment banker and an underwriting task is done. The investment banker will guarantee to the company to sell of the securities for whatever the specified amount may be. Now the underwriter will finance the funds of the securities in hopes of selling the securities as committed to by the investment banker. As the role described of the underwriter risk are a factor. The underwriter runs the risk of not being successful in selling the securities it has bought. In the event the underwriter did not succeed in selling the security they will suffer the loss of those monies because they will have to pay out the amount.
References
What exactly is an Investment Banker. (2007). Retrieved from http://www.entrepreneur.com/article/179958
•The role of an originating house and a syndicate
•An explanation of the pricing of the issue -- ME
•A discussion of some of the risks involved in the public offering and how the securities laws deal with them
•A discussion of any foreign exchange risks the company can face with your ideas about how to mitigate them
Investment bankers play essential roles when it comes to helping companies raise money in the form of selling securities. One may even refer to an investment banker as the “middle man” who assist companies in seeking potential buyers of their securities. An addition to the function of an investment banker they are also defined as, “They assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions” (What Exactly Is An Investment Banker, 2007). At the point when the company in need of funds seeks out an investment banker and an underwriting task is done. The investment banker will guarantee to the company to sell of the securities for whatever the specified amount may be. Now the underwriter will finance the funds of the securities in hopes of selling the securities as committed to by the investment banker. As the role described of the underwriter risk are a factor. The underwriter runs the risk of not being successful in selling the securities it has bought. In the event the underwriter did not succeed in selling the security they will suffer the loss of those monies because they will have to pay out the amount.
References
What exactly is an Investment Banker. (2007). Retrieved from http://www.entrepreneur.com/article/179958
References: What exactly is an Investment Banker. (2007). Retrieved from http://www.entrepreneur.com/article/179958