The Business of Investment Banking

"The legal documentation sets the tone of the relationship between the business entrepreneur and the private equity investors. The documents also serve as a platform for resolution of their differing interests."

"The key to evaluating an acquisition candidate is first to understand the acquirer's business strategy and reactions to the deal among shareholders."

"An IPO provides founding insiders with opportunity to diversify their wealth and facilitates the exit of founding entrepreneurs from the business."

"For most issues a trader must contact a broker-dealer for quotation. Two different dealers can result in two significantly different quotations."

"Securitized financing is one of the ways the global marketplace has grown, and has played an important role in the development of the derivatives market."

"Investment banking firms need to seize the opportunity to facilitate the global capital raising and capital allocating process."

"The eurobond market is largely a name market. Only the most creditworthy borrowers can issue securities. Another advantage is that they are bearer bonds; the ownership of the bonds is not recorded. As such, eurobonds are effectively tax-free."

"With the Big Bang reforms, Japan has entered the early stages of structural revolution toward a more Western-style financial system."

"Emerging markets have become an integral part of the global capital markets, and risks can be managed through diversification and the use of derivatives."

"Successful traders buy low and sell high, or short high and offer low, making gains that are greater than their losses when they are wrong. This seems simple, but it is not."

"Both parties to a repo transaction are exposed to credit risk, due to changes in the market value of the collateral."

"Financial engineering is the successful implementation of the investment banker's creativity in security design."

"Even though individuals continue to control the majority of mutual fund assets, the mutual fund industry is seeing a shift in the business toward an increasingly institutional customer base."