Finance questions – discussion

Provide detail thought provoking responses to the following questions:

1.Why do corporations employ investment bankers?

2. Identify the primary market functions of investment bankers.

3.Discuss how investment bankers assume risk in the process of marketing securities of corporations. How do investment bankers try to minimize these risks?

4.Explain market stabilization.

Solution Preview

Question One
Investment banking is a banking division tasked with capital creation for other companies. The division is involved in in creating an investment portfolio for its clients. The investment bankers are experienced in the distribution and selling of securities such as stock. Corporations hire investment bankers to help them in the issuance of security because the investment bankers may be of help in helping them design the right security (Brealey,2012).

(367 words)