Investment Banking For Dummies By Matthew Krantz

Investment Banking For Dummies By Matthew Krantz

1
Getting Started
with Investment
Banking

IN THIS PART . . .
Discover the role investment banking plays in the
financial system so you can understand the types of
services that are provided in the economy.
See how investment bankers interact with investors in
order to appreciate the primary job of moving money
from those with extra cash to those who need it.
Look at the process of selling a company to investors
so you can see the purpose of one of the key functions
served in investment banking.
Recognize what goes on in merger activity so you can
see how deals are done and what your job may be as
an investment banking professional.

IN THIS CHAPTER
» Understanding what investment
banking is
» Recognizing the critical role
investment banking plays in the
capital formation process
» Discovering how investment banking
compares with traditional banking
» Finding out how investment banking
operations make their money
» Looking at the different types of
investment banks and what they do

Chapter 1
Introducing Investment
Banking
If you’re like most people, when you hear the term investment bank, one of a few
things may cross your mind. Your eyes may glaze over as you think about mindnumbingly

detailed financial statements and valuation metrics. Yawn. Or, you
may think of exciting high-stakes financial maneuvers, like those out of the movie
Wall Street, where well-dressed bankers treat companies like Monopoly squares to
be dispassionately bought and sold.
But maybe you’re attracted to investment banking by the mental gymnastics
required and the promise of big bonuses and riches to those who are in the know.
And that may be why you picked up this book.
As you can see, there are many preconceived notions about investment banking
and investment bankers. Many of these ideas, though, are often pieces of fiction
blended with stories of larger-than-life personalities of high finance that spill out
of the pages of the money section of financial publications.

Investment Banking For Dummies By Matthew Krantz