You must have listened about the exhilaration of the money-making businesses such as investment banks. If you have heard about them and want to be a part of those lucrative businesses in order to make yourself a wealthy person, then you need to learn about the investment banks first and this article will exactly show you the every dimension of it and it will become a smooth step for you understand the process and shapes of investment banks in Kuwait and capital in Kuwait.
In short, investment banks are the financial organizations which give suggestions and carry out a variety of financial tools to optimize the financial effectiveness of the corporations. The usual structure of an investment bank has three parts as 1) corporate finance, 2) sales and trading and 3) research department and every part has different role to play. The most common terms you will also find are debt capital markets and equity capital markets.
Let's first talk about the first part which is corporate finance.
Corporate Finance
It is typically known as the central part of the investment banking and it gives the subsequent services fro the customer.
• Capital raising which means it issues the equities and debts
• Introduce companies to public markets as initial public offerings, in short it is called IPO
• It deals with the mergers, acquisitions and divisions of the industries
• Company and monetary reformation
• Suggestions on strategic development
• Dealing with equity capital markets
• Handling debt capital markets
This department is further divided into industry and quế lâm product groups if the size of the bank is enormous. They have teams divided in areas as well. If the back is working globally then it will divide the teams in continents and countries or if it working within the county, then they will have teams divided city wise to give the maximum coverage to its clients.
Sales & Trading
It is the second part and it is in charge of buying and selling monetary products which induced mutual funds, pension funds, hedge funds and other fund houses as sales to the institutions. The institutional sales will lend a hand to endorse the IPO and new equity/debt issuance set by corporate finance part.
The trading part of it takes on the trading with a variety of monetary tools to produce a spread or quế lâm commission which is the variation between purchase and selling price. The monetary tools are comprised of stocks, bonds, foreign currencies, commodities, etc.
Research Department
The name of this department is itself a definition of it and it obviously is involved in t he research work and it s role is too important in the investment bank. The official personnel in this part are actually the search or security analysts and their main job is to search, learn and analyze the prevailing trends in the market and present their reports formally in written with their suggestions.
The investment banks in Kuwait also work in the details and multiply your capital in Kuwait with leaps and bounds.