Investment Banking

The enthronization banking application in the United States is comprised of fewer than 2,000 companies, with combine annual revenue of about $110 billion. Some major(ip) companies include Morgan Stanley, Goldman Sachs, Lehman Brothers, Bank of America, and Bear Stearns. Investment banking is a intemperately concentrated industry, with the largest fifty firms holding ninety percent of the market. subscribe is driven by economic activity that results in ships company mergers, acquisitions, or unexclusive financing. The profitability of an coronation bank depends on its ability to accurately assess both the value of a business transaction and the readiness of the market to buy the ships boat debt or righteousness. Big firms have an advantage because large customer transactions require firms with substantial financial resources. Small investment banks can compete by participating in syndications and run in regional markets or specialized industries. Although labor-intensive, the industry produces precise high value: average annual revenue per employee at large firms is close to $1 million. The primary revenue sources of the investment banking industry are from the placement of new debt and equity issues with public and private investors, and the fees associated with mergers and acquisitions.

Investment banks also purchase new debt and equity issues for their own accounts, acting as the market ?maker, and progressively art other financial instruments. Most investment banks are sprightly securities and currency traders and also provide asset management service for wealthy clients and retirement and investment funds. Thirty percent of industry revenue comes from merger and acquisition fees and associated stock transactions; 15 percent from helping corporations and governments issue bonds; 20 percent from active trading in financial instruments; and 10 percent from have-to doe with income. The industry assembles and supplies the capital requires by businesses to expand, merge, and acquire other businesses.... If you exigency to get a full essay, order it on our website: Orderessay

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