Investment Banker

>> Tuesday, April 21, 2009

Here comes the next breed. The one who has drawn so much flak in the recent past. Anyways, what do these guys do?

Simply put, an investment banker is your best friend when it comes to dealing with capital markets. He helps you raise cash from the capital markets... (hmmm here comes a new term.. what is it?)

A vegetable market is a place wherein vegetables are traded. Similarly, a capital market is a place wherein instruments which helps you raise capital are traded. So capital markets include stock (equity) and bond markets (debt).

ok.. lets come back to our Investment Banker.

When a company wants to raise cash in the capital markets, either debt or equity, the I-Banker (as he is fondly called) comes to your rescue. He helps you manage the whole process. Not just that, he does a whole lot of other things too... He is often called the corporate broker. So he deals with corporate marriages (mergers), divorces (sell offs) or dating (Joint ventures). Many a times he also keeps track of players in the capital markets and gives his expert opinions on them to willing listeners.

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