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Function in which the investment banking companies in India or worldwide to issue new securities is called distribution. In this the securities that they get are sold to the different organization and they also have a specialized staff to help distribute these securities.
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Why Investment Banking Companies So Important to Growing Businesses? www.avendus.com/india
The Concept of Investment Banking I am pretty sure that each one of us has heard the term ‘investment banking’ but we have never really put in a lot of efforts into knowing what it is. We haven’t really tried to understand how these big financial institutions function and what goes behind the scenes of this big glamorous world. To put it in a simple language, investment banks are like the middlemen in the big process of gaining financial stability and security. Ideally the buy the securities from companies and then resell these to the public. This way they bring the suppliers and the users together. www.avendus.com/india
Underwriting It is a process through which the credit worthiness of any customer is assessed through any of the leading lending institutes. They see the customer’s credibility and then they package and sell this security on behalf of the client that they just assessed. This process usually involves them buying from a lower price (from the customer) and then selling it in the market for a higher price. So, it is like an insurance in which the banker bears the risk of any adversity in the market that may occur. www.avendus.com/india
The Function Distributing This function in which the investment banking companies in India or worldwide to issue new securities is called distribution. In this the securities that they get are sold to the different organization and they also have a specialized staff to help distribute these securities. This way they perform the physical distribution and functions more efficiently. This is also very economical for individual company. www.avendus.com/india
The Role of Being an Advisor The investment banking companies based on their years of experience also become an expert in all the trends in the market. Having a back up of years of studies and research, they could also be the best guides for the customers. it does not matter how big or small your business is. The investment banker assigned to you will all the time make sure that you only earn maximum profit. This way they become reliable advisors for their clients. www.avendus.com/india
Be Careful Who You Choose Although we have spoken so much about the investment banking and the various companies, it is important to note that one must be very careful while choosing an investment bank for the company. Investment banks are many in number today. Therefore, before you approach any of them with your company and financial portfolio, it is advisable that you first do a background check about the company. Afterall, it is your hard-earned money that we are dealing with here. www.avendus.com/india
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