Investment Banking

A Guide to Underwriting and Advisory Services

Business & Finance, Finance & Investing, Finance
Cover of the book Investment Banking by Giuliano Iannotta, Springer Berlin Heidelberg
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Giuliano Iannotta ISBN: 9783540937654
Publisher: Springer Berlin Heidelberg Publication: January 12, 2010
Imprint: Springer Language: English
Author: Giuliano Iannotta
ISBN: 9783540937654
Publisher: Springer Berlin Heidelberg
Publication: January 12, 2010
Imprint: Springer
Language: English

From a historical point of view, the main activity of investment banks is what today we call security underwriting. Investment banks buy securities, such as bonds and stocks, from an issuer and then sell them to the ?nal investors. In the eighteenth century, the main securities were bonds issued by governments. The way these bonds were priced and placed is extraordinarily similar to the system that inve- ment banks still use nowadays. When a government wanted to issue new bonds, it negotiated with a few prominent “middlemen” (today we would call them investment bankers). The middlemen agreed to take a fraction of the bonds: they accepted to do so only after having canvassed a list of people they could rely upon. The people on the list were the ?nal investors. The middlemen negotiated with the government even after the issuance. Indeed, in those days governments often changed unilaterally the bond conditions and being on the list of an important middleman could make the difference. On the other hand, middlemen with larger lists were considered to be in a better bargaining position. This game was repeated over time, and hence, reputation mattered. For the middlemen, being trusted by both the investors on the list and by the issuing governments was crucial.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

From a historical point of view, the main activity of investment banks is what today we call security underwriting. Investment banks buy securities, such as bonds and stocks, from an issuer and then sell them to the ?nal investors. In the eighteenth century, the main securities were bonds issued by governments. The way these bonds were priced and placed is extraordinarily similar to the system that inve- ment banks still use nowadays. When a government wanted to issue new bonds, it negotiated with a few prominent “middlemen” (today we would call them investment bankers). The middlemen agreed to take a fraction of the bonds: they accepted to do so only after having canvassed a list of people they could rely upon. The people on the list were the ?nal investors. The middlemen negotiated with the government even after the issuance. Indeed, in those days governments often changed unilaterally the bond conditions and being on the list of an important middleman could make the difference. On the other hand, middlemen with larger lists were considered to be in a better bargaining position. This game was repeated over time, and hence, reputation mattered. For the middlemen, being trusted by both the investors on the list and by the issuing governments was crucial.

More books from Springer Berlin Heidelberg

Cover of the book Brain-Computer Interface Research by Giuliano Iannotta
Cover of the book Swimming Physiology of Fish by Giuliano Iannotta
Cover of the book Klüger irren - Denkfallen vermeiden mit System by Giuliano Iannotta
Cover of the book Advanced Models of Neural Networks by Giuliano Iannotta
Cover of the book JIMD Reports, Volume 22 by Giuliano Iannotta
Cover of the book Paleogene Fossil Birds by Giuliano Iannotta
Cover of the book Shaped Beam Radiosurgery by Giuliano Iannotta
Cover of the book Environmental Photochemistry by Giuliano Iannotta
Cover of the book Meine Zahnarztpraxis - Marketing by Giuliano Iannotta
Cover of the book Measurement of the Top Quark Mass in the Dilepton Final State Using the Matrix Element Method by Giuliano Iannotta
Cover of the book The Quintessence of Supply Chain Management by Giuliano Iannotta
Cover of the book Proceedings of the 27th Conference of Spacecraft TT&C Technology in China by Giuliano Iannotta
Cover of the book Gletscher im Wandel by Giuliano Iannotta
Cover of the book C-C Bond Activation by Giuliano Iannotta
Cover of the book Evaluation of Interstitial Nerve Cells in the Central Nervous System by Giuliano Iannotta
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy