“You achieve the best by working with the best” – Brent Pierce, Founder and Chairman
Investment banking is a field of banking that aids individuals, companies or governments in raising capital.
Traditionally, banks either engaged in commercial banking or investment banking. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals. Unlike commercial banks and retail banks, investment banks do not take deposits.
Generally, any sale of securities to more than 35 people is deemed to be a public offering, and requires the filing of registration statements with the regulatory authorities.
The offering price is predetermined and established by the issuing company and the investment bankers handling the transaction. The term public offering is equally applicable to a company’s initial public offering, as well as subsequent offerings.
A private placement refers to the sale of securities to a relatively small number of investors as a way of raising capital.
Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds, but may also include individuals or trusts. A private placement is in effect, the opposite of a public issue, in which securities are made available for sale on the open market.
The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy,
corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.