Capital Markets

Capital Markets and enthronement Banking process 1 Capital Markets and investiture Banking Process Paper Capital Markets and investment funds Banking Process investment banks have assumed a major role in the economy by oblation a wide regeneration of important and valuable services. The majority of these services revolve well-nigh the superior markets, where companies raise supernumerary capital through the sales agreement and purchase of securities. A various(a) group of securities, held for investment reasons, called an investment portfolio. at that place ar certain(prenominal) relationships between investment banking, capital markets, and investment portfolios. The Investment Banking Process Investment banks are different from commercial pass banks in that while commercial banks are loan suppliers, investment banks have other roles to exploit in the economy. Two of the much important roles played by investment banks are facilitating the tape transp ort of funds between the cosmos and corporations through the use of capital markets, and as a provider of information and advice, to corporations, regarding acquisitions, mergers, and similar pecuniary transactions. The activities of investment banks are performed in the capital, master(a) quill and utility(prenominal), markets. there are distinguishing features which separate the two markets.

The primary market, according to Bodie, Kane, & Marcus (2007), is A market in which new issues of securities are offered to the public. Activities in the primary market consist of investors purchasing securities as dir ectly as possible to the source. Secondary m! arkets are specify as a market in which Already living securities are passeld among investors (Bodie, Kane, & Marcus, 2007, p. 18).. The secondary markets offer an option to investors looking at to exchange their assets, in the name of profit or liquidity, or to those looking to trade amongst other investors. Investment banks are among the most dynamic participants in the primary market. This activity is because of their role as an...If you sine qua non to construct a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper