Plate / GCGC Weekly News Letter 4/25/2023 - Investment Bank Explained, and how we fund a loan at Plate/GCGC.

What Is an Investment Bank?

An investment bank is a financial services company that acts as an intermediary in large and complex financial transactions. An investment bank is usually involved when a startup company prepares for its launch of an initial public offering (IPO) and when a corporation merges with a competitor. It also has a role as a broker or financial adviser for large institutional clients such as pension funds.

The Intermediary Role

Investment banks are best known for their work as intermediaries between a corporation and the financial markets. That is, they help corporations issue shares of stock in an IPO or an additional stock offering. They also arrange debt financing for corporations by finding large-scale investors for corporate bonds. The investment bank's advisory role begins with pre-underwriting counseling and continues after the distribution of securities. The investment bank is responsible for examining a company’s financial statements for accuracy and publishing a prospectus that describes the offering in detail to investors before the securities are available for purchase. Investment bank clients include corporations, pension funds, other financial institutions, governments, and hedge funds.

Investment bank operations can be roughly divided into three main functions.

Research - Investment banks have research divisions that review companies and write reports about their prospects, often with buy, hold, or sell ratings. This research may not generate revenue directly but it assists its traders and sales department. The research division also provides investment advice to outside clients who can complete a trade through the trading desk of the bank, which would generate revenue for the bank. Research maintains an investment bank's institutional knowledge on credit research, fixed income research, macroeconomic research, and quantitative analysis, all of which are used internally and externally to advise clients.

Mergers and Acquisitions - Facilitating mergers and acquisitions is a key element of an investment bank's work. The investment bank estimates the value of a potential acquisition and helps negotiate a fair price for it. It also assists in structuring and facilitating the acquisition to make the deal go as smoothly as possible.

Research - Investment banks have research divisions that review companies and write reports about their prospects, often with buy, hold, or sell ratings. This research may not generate revenue directly but it assists its traders and sales department. The research division also provides investment advice to outside clients who can complete a trade through the trading desk of the bank, which would generate revenue for the bank. Research maintains an investment bank's institutional knowledge on credit research, fixed income research, macroeconomic research, and quantitative analysis, all of which are used internally and externally to advise clients.

The above is According to Investopedia - By MARSHALL HARGRAVE Updated June 24, 2022, Reviewed by MICHAEL J BOYLE, Fact checked by VIKKI VELASQUEZ

https://www.investopedia.com/terms/i/investmentbank.asp

At Plate/GCGC : No monies have to be raised, or syndicated. Furthermore, we fund with profits, etc. Plate Company's financial partner is an institution that owns 30 banks that mandated us as their official representative(Underwriter). We handle everything from start to finish for them such as intake, pre underwriting, onsite visit & due diligence, underwriting, closing, funding, loan monitoring, auditing, servicing, etc. The mandate is a contract/license they issued us to do this work for them. We are not a broker, capital is in place, and are the funding.

[email protected]

1.224.216.0334