what are the types of services provided by both investment banks and brokerage firms in today………?
what are types of services provided by investment banks and brokerage firms in today’s America financial environment? in addition, what is leverage buyouts(LBOs),and how investment banks facilitate them(LBOs)? please provide with sources; if u don’t know, please ask ur friends and colleagues; thank u.
dude, investment banks are hardcore underwriters: I want to raise money. i get the banks to organise everything and i pay them a fee. they raise the money. i get them to pay me the money i want no matter what – they might even have to pay out of their pocket if they don’t raise enough. i get the money i need (after paying the banks their fee) and I can do what i want with it. I can pay them in many different ways.
most banks have other sorts of arms – they buy apples for $1 when they are worth $2 – so here they get a $1 profit.
LBOs are when you buy something, e.g. a business using a high level of borrowed funds. they are highly leveraged – this means that they have heaps of debt. it’s like borrowing money to buy an DJ systems. with the money you earn from the DJ system, you then payoff the guys who lent the money to you. If you make a profit, you’ll make a massive return because you’ll have put in very little cash yourself because you’ve borrowed most of the money from other people. but if you make a loss, the guys who lent you their money for you to get that DJ system will get cut to the heart and will try and get your house and everything.
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