Investment banking will be the focus of this chapter. Therefore, you will need to understand a few basic concepts surrounding investment banking. We will begin by understanding the challenges of an Initial Public Offer, commonly known as an IPO. When a company decides to go to the stock market in order to acquire money from the public, they release an IPO for the public and institutions to subscribe to. We will also understand the concepts of M&A, as well as how to classify investors and apply AI to mergers and acquisitions.
The job of investment bankers in IPOs
The following are some of the core problems that investment bankers deal with:
- Pricing:What is the right price for the new issuance (of equity)?
- Syndication:Who should we distribute the shares to and at what price?
- Listing:How can we register these shares with the markets (such as stock exchanges) so that they pass all the requirements...