Apr 18, 2016
- Complete the sentences below. Use the key words if necessary.
- Raising capital
key words
Ruth Henly works in an investment bank in New York. - ‘Unlike commercial banks, investment banks like ours don’t lend money. Instead we act as between companies and investors. We help companies and governments raise capital by such as stocks and bonds — that is, we offer them for sale.
We often securities issues: in other words, we guarantee to buy the securities ourselves if we can’t find other purchasers.
As well as (IPOs), when companies offer stock for sale for the first time, there are other occasions when they . For example, they might want to expand their operations, or to another company, or to reduce their amount of debt, or to finance a specific project. They don’t only raise capital from the public: they can sell stocks or shares to like insurance companies, — companies that invest the money of lots of small investors, and — companies that invest money that will later be paid to retired workers.
We also have a and department. This — buys and sells stocks for clients — which is broking, and trades with our own money, which is dealing. The stockbroking department also offers advice to investors.’
Mergers and acquisitions
key words
‘Investment banks often represent firms in and , and . A divestiture is when a company sells a — another company that it owns. Most of the fee — the money the company pays us for the service — will depend on us completing the deal successfully. This gives the bank a good reason to make sure that the transaction succeeds.’
Consulting and research
key words
‘Large corporations have their own finance and corporate development departments. But they often use an investment bank like ours because, like a , we can offer independent advice, and we have a lot of experience in financial transactions. We also have a of contacts, and relationships with investors and companies that could be interested in a merger or acquisition.
If we’ve worked on a transaction with a company, we know a lot about its business. This means we can give advice about — deciding what do to in the future — or — changing the way the business is financed. Large investment banks also have extensive departments with and who specialize in the of different markets, industries, companies, securities and currencies. Analysts try to work out how much things are worth now, and forecasters study the prospects for the future.’
- Raising capital
- British English or American English?
- flotation
- American English
- British English
- initial public offering (IPO)
- British English
- American English
- flotation
- Complete the sentences from newspaper articles with words from the box.
- box
1. Deutsche Telekom’s IPO was by Goldman Sachs. - 2. During their acquisition of Mannesman, Vodafone were by UBS.
- 3. Large multinationals are always less successful parts of their business as well as successful companies.
- 4. Big Wall Street banks earned millions of dollars in consulting from Enron before the company collapsed.
- 5.When Mitsubishi Tokyo Financial Group with UFJ Holdings, they became the world’s biggest bank.
- 6. In 2000, the global value of was over $220 billion.
- box
- Match the definitions with the words below.
- a company of experts providing professional advice to businesses for a fee — . . .
- forecasters
- consulting firm
- institutional investor
- a financial institution that invests money to provide retirement income for employees — . . .
- pension fund
- consulting firm
- institutional investor
- deciding what a company is going to do in the future — . . .
- valuation
- strategic planning
- financial restructuring
- people who try to predict what will happen in the future — . . .
- consulting firm
- forecasters
- strategic planning
- a company that is partly or wholly owned by another one — . . .
- institutional investor
- subsidiary
- pension fund
- a financial institution that purchases securities — . . .
- pension fund
- institutional investor
- consulting firm
- making changes to how a company is financed — . . .
- strategic planning
- financial restructuring
- valuation
- establishing how much something is worth — . . .
- strategic planning
- valuation
- financial restructuring
- a company of experts providing professional advice to businesses for a fee — . . .
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