In the previous chapter, we covered the basic concepts of investment banking. We also learned about the concepts of Mergers and Acquisitions (M&A) and Initial Public Offering (IPO). We examined the clustering model, which is a modeling technique of AI. We looked at detailed steps and examples to solve the problem with auto syndication. We implemented an example that identified acquirers and targets. So, the previous two chapters were intended for the issuers on the securities side of investment banking.

In this chapter, we will look at the dynamics of investors. Investors drive investment behavior strategically. The issuance of equity or debt can be done in either of two ways—via the primary market or the secondary market. The role of the primary market is to issue new securities on behalf of companies, the government, or other groups in order...