INVESTMENT BANKING

Investment banks help companies and government and government agencies in the acquisition to raise funds by issuing and selling securities in the capital market. Investment banks play a role in providing strategic advice to a merger (the merger) and acquisitions and various other types of financial transactions.

Investment banks also act as business brokers representing clients in commercial transactions. But in recent years the dividing line between the two types of structures have blurred, especially as commercial banks also offer investment banking services.

In America, Act Glass-Steagall Act was created in the early revival of capital market downfall in 1929 which prohibits banks for deposits and also concurrently be the recipient of a stock and bond underwriting, this legislation finally canceled in 1999 by law Gramm-Leach-Bliley Act.

These investment banks should also be distinguished by stockbrokers who do business in sales and purchases of stocks, bonds, mutual funds. But some companies engage in business with a broker and double the investment bank, was carried out also included a large financial company famous worldwide.

Most investment banks are involved so far in providing additional financial service for its customers, such conduct transactions in derivatives trading, bonds, foreign exchange, commodities, and stocks.

Characteristics used in the investment bank to this day are mostly only of "the seller" It's just that trade securities or shares (eg, facilitating transactions, market creators), or promoting the shares (such as underwriters, analysts, etc.).

buy side represented by its pension funds, mutual funds, hedge funds and public investors who became users of their services in order to obtain maximum benefit from their investment. But many companies also have both of these components.

investment banking organization
The main activities and unit-unit
The main function of the investment bank is buying and selling products on behalf of its customers or on behalf of the bank itself. Investment banks took risks through the trading rights by the traders who do not deal directly with customers.

An investment bank consists of several units, consisting of front-line (front office), midfield (middle office) and the back (back office), each of which has the following activities:

• front line or the front office is a traditional aspect of investment banks whose duty to provide assistance to clients in raising funds through capital markets and to provide advice in the process of mergers and acquisitions. Investment bank offering an idea that was brought to the meetings with customers in the hope that this idea mebuahkan result of a mandate from its customers to execute transactions on behalf of the customer. If the mandate has been obtained, the investment bank responsible for preparing all the materials required in this transaction which may involve investors who are interested in buying the securities issuance, coordinating with other parties to negotiate with the bidder or the target company merger.

• Investment management (see main article: Investment Management is the professional management of various securities (shares, bonds and others), who did his duty to obtain a return on investment in accordance with the objectives of investors. Investors can they be companies (insurance , pension funds, company) or private investors (all of which are invested in investment contracts, or often through collective investment contracts such as mutual funds)

• The financial market consists of sales, trading, analysis and structuring.

• Sales and trading is usually a major part of that generate income for investment banks. In the process of creating a market, traders will sell and buy financial products in order to produce the increase in trade value. The seller is the term used for the sales team in charge of investment banks to contact financial institutions and investors that have the potential to offer a trade idea and receive orders from investors trade transactions and orders them to continue trading desk (Trading desk) weeks to run.

• The analyst is the division that performed an analysis of the enterprise and provide a written report about its prospects, usually be included with the rating of buying or selling. This division does not produce income, where their work is used as input for the customer in executing trades.

Structuring is a division related to derivatives trading division play with a high technique with a number of employees in creating a complex structure that can provide greater returns than deposits.

Midfield or middle office
• Risk management plays a role in analyzing the market and credit risk from its customers as outlined in the trade balance of the daily trading limit on the number of customers and determine the required capital so that customers are allowed to trade in order to prevent default in such trade.

Rear line or back office
• Operational checks dlam role of trade data to ensure compliance with regulations, ensure the error does not occur and to implement the necessary transfer transaction.

Technology
• Every major investment bank has a number of software created by the technology team is also responsible for computer and telecommunications facilities. Technology has grown rapidly now where trade has been done electronically. By using a complex algorithm that this program can be used to implement automatic hedging.

List of investment banks
Financial conglomerates
Large financial services conglomerate, doing a combination of commercial banks and investment banks and even insurance. Under the law the Gramm-Leach-Bliley Act of 1999, the combination is in the United States is against the law. In the list below bracketed is an affiliate of investment bank.

• Allianz (Dresdner Kleinwort)
• Bank of America (Banc of America Securities)
• BNP Paribas
• BMO (BMO Capital Markets)
• Barclays (Barclays Capital)
• Calyon
• CIBC (CIBC World Markets)
• Citigroup
• Credit Suisse
• DEKA Bank
• Deutsche Bank
• Fortis Bank
• HSBC
• ING Group
• JPMorgan Chase (JPMorgan Securities, Inc..)
• Kaupthing Bank
• KBC Bank (KBC Financial Products)
• KeyCorp (KeyBanc Capital Markets)
• Mizuho Financial Group (Mizuho Corporate Bank)
• Monte dei Paschi di Siena (MPS Finance)
• Nomura Securities Co.., Ltd.. (Nomura Securities Co..)
• Bank of Nova Scotia (Scotia Capital)
• Rabobank
• Royal Bank of Scotland
• Royal Bank of Canada (RBC Capital Markets)
• Grupo Santander
• Société Générale
• Toronto-Dominion Bank (TD Securities)
• UBS AG
• Unicredit (Unicredit Group)
• Wachovia (Wachovia Securities)
• Wells Fargo (Wells Fargo Securities)

Independent investment bank
Investment bank (underwriter) that are not affiliated with banks are as follows:
• A.G. Edwards
• Bain Capital
• Bear Stearns
Boenning & Scattergood •
• Canaccord Adams
• C.E. Unterberg, Towbin
• Close Brothers Group
• Cowen Group, Inc..
• Dresner Partners
• Edward Jones Investments
• Ferris, Baker Watts Inc..
• Financo, Inc..
• Friedman Billings Ramsey
• Gabelli
• Genuity Capital Markets
• Goldman Sachs
• Greenhill & Company
• Harris Williams & Company
• Hilco Corporate Finance, LLC
• Houlihan Lokey Howard & Zukin
• Investec
• Janney Montgomery Scott
• Jefferies & Co..
• Jordan, Knauff & Company
• Keefe, Bruyette & Woods
• Ladenburg Thalmann
• Lazard Capital Markets (spun off from Lazard 2005)
• Legg Mason
• Lehman Brothers
• Macquarie Bank
• The McLean Group
• Merrill Lynch
• Miller Buckfire
• Morgan Stanley
• Needham & Company
• Newbury Piret
• Newsouth Capital Management inc.
• NIBC
• Noble Bank (UK)
• Nomura
• Oppenheimer
• Piper Jaffray
• Raymond James
• Revolution Partners
• Robert W. Baird & Company
• Roth Capital Partners, LLC
• N M Rothschild & Sons
• Sagent Advisors
• Salman Partners Inc..
• Sandler O'Neill + Partners
• Stephens Inc..
• ThinkEquity Partners, LLC
• Thomas Weisel Partners
• T. Rowe Price
• Transparent Value
• William Blair & Company
• WR Hambrecht + Co.