Requirments: CSP: 1, 2, 6.
This course covers the three distinct activities of investment banking: (1) underwriting- new issues of securities, (2) fee banking-activities that earn a fee like advising on corporate restructurings, securities and economic research, and other types of financial consulting, and (3) transactions- trading in the secondary markets, proprietary trading for the firms own account, and retail brokerage. The emphasis of the course will be on equity underwriting and advising in orporate restructuring activities. It will also focus on the principles of firm valuation. These tools will be used to value, for example, an initial public offering firm, the target firm in a takeover contest, and a leveraged buyout firm.