Capital Markets and Investment Banking

Capital Markets and Investment Banking Process

Investments banking process and capital markets are elements in understanding how to invest and be successful in the investments. In the investment backing process, investor might enlist the help of an investment banker which can help the investor with buying, selling, and trading of securities, managing assets and give financial advice. Portfolio construction is another area that should be examined to make sure that diversification, asset allocation and investment performance in being achieved for increase return. A complete understanding of capital markets is vital to the investor, which can give a greater understanding on how and where investments are being processed.

Investment banking provides a service to our economy and serve an important role in the world financially. One important role is to help public and private companies raise capital. Investment banking is different from commercial banking in that it does not make commercial loans or take deposits. This paper will focus to describe the investment banking process including the function of portfolio construction, describe the factors that should be considered when selecting asset classes for an investment portfolio and describe the capital market instruments used in investment portfolio construction.

Investment banking consist of selling, underwriting, financial services, asset managing and trading securities. Investment banks cater to stockholders; nonprofit organizations and government agencies, which help them, raise funds on the capital market. Customers receive the following functions from investment banking: Trading intermediaries, invest and lend banks’ assets, advise on Mergers and Acquisitions and Buy, issue, sell and trade bonds and stocks.

At one point portfolios Investment banks were completely different from commercial banks, where people mainly sought commercial loans. In current years commercial and portfolio investment banks...