michal bodlák. definition an investment bank is a financial institution that assists: individuals,...

INVESTMENT BANKING

Michal Bodlák

Definition An investment bank is a financial institution that assists:

individuals, corporations and governments companies involved in mergers and acquisitions,

Provide services: trading of derivatives, fixed income instruments, foreign exchange, commodities, equity securities

An investment bank can be split into private and public functions the private areas of the bank deal with private insider information the public areas such as stock analysis deal with public information

Ornanizational Structure

Front Office

Middle Office

Back Office

Front Office- Core Activities

Investment BankingM&A; Raising fund; Advisory; Asset Finance; Equity;

etc.○ Industry Coverage Group○ Product Coverage Group

Sales and TradingSales Force = Buying and Selling ProductsSales Desk = Pricing and Executing Trades

ResearchReports; Prospects; Assists to Trades; Do Not Generate Revenue

Middle Office- Core Activities

Risk ManagementAnalyzing Market; Setting Limits; Market and Credit

Risk

Treasury ManagementMonitoring Risk Liquidity, Capital Structure

Financial ControlAnalyzing Global Risk, Profitability; Product Control

Corporate Strategy

Back Office- Core Activities

Operations

Technology

Global Transaction Banking

Investment Management

Merchant Banking

Thank you for your

attention.