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The investment banker was a breed apart, a memberof a master race. He possessed vast, almost

unimaginable talent and ambition. If he had a dog, itsnarled. He had two little red sports cars yet wanted

four. To get them, he was, for a man in a suit,surprisingly willing to cause trouble.

Michael Lewis, Liars Poker

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A catch all term for raising capital andproviding financial advice to corps. andgovts.

Just about every govt. or largecorporation in the US calls on investmentbanks to raise capital and get advice onmanaging its finances.

They can raise the money a number ofdifferent ways i.e issuing stocks or bondsto derivatives and ABS.

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Investment banking clients can vary fromsophisticated clients i.e. major corporationsor large, experienced funds to smaller

institutions like SMEs usually depending onthe size of the bank

Some of the smaller I-banks have focuses oneither certain sectors i.e. healthcare or

technology or stage related companies i.e.start ups

I-Banks can raise money for investmentvehicles i.e CEF, REITS, PE Feeders

They also provide advice for M&A deals and

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Where do they get the money from?

Institutional investors large Endowments

Pension funds Hedge Funds

Mutual Funds

Insurance companies

Individuals HNW A separate part of the investments bank (GPC)

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Bueno Y Sanoplans to raise$150 million incapital by issuingstock. They invitefive banks to bidfor the business.

They assess eachcompetitors viewand pastexperience. Piperwins the business!

Corporate Financeteam assess thevalue of thecompany inrelationship to theclients goals andtimetable. Theycall on equity

research and S&Tteam to predictcurrent marketsreaction to theoffering and alsoto develop priceand marketingplan

The team decides toissue common stock at$22 per share. They alsoprepare a prospectus tomarket the offering andfiles registrationmaterials with the SEC

In the final hours, theprice of the shares isfinally set. The syndicatedesk underwrites (buys)the equity along with agroup of otherinvestments banks

Bueno Y Sano NYSE:BUENO shares arereleased to the salesforce (institutional andretail) they distributeprospectus and sellsshares to investors

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Fast

Competitive

Intense

Meticulous

Highly rewarding

Time consuming

Typical banker

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Mike MaloneyJP Morgan

Consumer Healthcare Group

Zev GarellJP Morgan

Consumer Healthcare Group

Drew Schwarz Piper Jaffray

Technology Group