Capital Markets and Investment Banking Process Essay

Capital Markets and Investment Banking Process - Essay Example The different types of capital instruments that constitute an investment portfolio have also been described. Lastly, recommendations have been provided regarding the selection of assets for the construction of an effective and efficient portfolio. Investment Banking Process for an IPO Initial Public Offering (IPO) refers to the process of issuing shares by a company to the public for the first time in its history. It is mainly done to raise capital or funds in the form of share capital to be utilized by the company in its business processes. An IPO process typically consists of three key steps. They are: a) Preparation; b) Market approaching strategies; and c) Going public. Investment bankers are selected by the company for the purpose of coordinating the whole process of IPO. Hence, investment bankers form an important part of the IPO process and perform various functions during the whole process. The investment bankers give valuable advice to the company regarding how to go about t he whole process of IPO. The underwriting functions related to the IPO are also performed by the investment bankers. ... The investment bankers are mainly selected by the companies because of their expertise in the field of obtaining the best selling price of the shares to be issued by the companies (O'Rourke, 2007, p. 209). Hence, investment bankers are found to have three tasks to be performed by then in case of IPOs. They are: a) Given the existing conditions in the market, the investment bankers help the companies to design the securities of the companies to be offered by them in a way that are most attractive to the public; b) The investment bankers buy those securities from the companies; and c) They resell those securities to the investors or the public (Besley & Brigham, 2008, p. 83). Asset Class Selection for an Investment Portfolio Portfolio of an investor consists of combination of assets or asset classes. An asset class can be defined as a combination of different types of securities such as shares, bonds, mutual funds, etc. which, taken together, serve the purpose of providing specific con tribution to the portfolio of the investors. Such contributions are in the form of risks associated with the securities chosen, the return generated from the assets and covariance of return that exists between other classes of assets. The diversification of assets included in a portfolio can be achieved at two levels. One is while choosing a large number of assets and the other one is while choosing different types of asset classes to form the portfolio. Various factors are needed to be considered while selecting asset classes to form an investment portfolio. They are: a) Expected return of the portfolio; b) Diversification benefits; c) Required scale of investment; and d) Liquidity. The returns that are expected from the asset

A Family business Essay Example | Topics and Well Written Essays - 1000 words

A Family business - Essay Example urse, I plan to become an entrepreneur with the best possible amount I can invest in a Middle Eastern style restaurant with the help of my family members. I am imbued with the ‘push factor’ (Preston, Fryer & Watson, 2006) that is the involvement of my own people will encourage me during my hardships and with their joint effort; I will prove my potential business skills. Having clearly studied all the possibilities and constraints of the business, I am rather determined to set up the restaurant named â€Å"GulfGate† after due consultation with experienced people from my relatives and well-wishers. A positive side of the restaurant is the balanced nature of ‘pay for quality’; the equation to be practiced during the operation for best result of business. The choice of this stream was supported with the expectation of increased number of customers from countries like India, China, Singapore and Malaysia. Since the location of the business is expected to be in the suburbs of Dubai, it is easy to gather a huge number of customers very easily. Quality food is the major concern I emphasize for the regular update of the restaurant for which I have plans to post people at different parts of the city for distinguished purchase. A greater part of my burden to find a cook is eased with the inclusion of my cousin, who is an experienced graduate in food design and hotel management. Since this is a family unit, less implication of mistrust can be witnessed. Depending on the religious aspects, our family stands better in the society; therefore, we can claim easy access with people and their support. This is a business intended to service and trade, therefore, expert opinions from elders would also support us in the long run. As Preston, Fryer & Watson (2006) state, Small business has other advantages like the better knowledge about the local business environment and can sub-contract the projects of big businesses. However, I don’t deny the possibilities of disparities