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Terry Colip
Terry Colip, respected
investment banker-
primary function of a modern investment bank is the buying
and selling of marketable securities in the secondary market and any employee
working in an investment bank is called an "investment banker." ,
Furthermore, one who engages in these activities
in-house at a non-investment bank is also considered an investment banker.
Initially known as merchant banks they helped companies and governments and
their agencies to raise money in the primary market. They assisted public and
private corporations in raising funds in the capital markets (both equity and
debt), as well as in providing strategic advisory services for mergers,
acquisitions and other types of financial transactions.
Investment banks may also act as intermediaries in trading for clients.
Investment banks differ from commercial banks, which take deposits and make
commercial and retail loans. In recent years, however, the lines between the two
types of structures have blurred, especially as commercial banks have offered
more investment banking services. In the US, the Glass-Steagall Act, initially
created in the wake of the Stock Market Crash of 1929, prohibited banks from
both accepting deposits and underwriting securities; Glass-Steagall was repealed
by the Gramm-Leach-Bliley Act in 1999. Investment banks, however, differ from
brokerages, which in general assist in the purchase and sale of stocks, bonds,
and mutual funds. However some firms operate as both brokerages and investment
banks; this includes some of the best known financial services firms in the
world.
More commonly used today to characterize what was traditionally termed
"investment banking" or "merchant banking" is "sell side." This is trading
securities for cash or securities (i.e., facilitating transactions,
market-making), or the promotion of securities (i.e. underwriting, research,
etc.).
"investment banking" better known today as the "buy side" and constitutes the
pension funds, mutual funds, hedge funds, and the investing public who consume
the products and services of the sell-side in order to maximize their return on
investment. However many firms have both buy and sell side components.
Terry
Managing Partner & CFO
Cell>Point, LLC
7120 E. Orchard Rd., Suite 355
Centennial, Colorado 80111
www.cellpointweb.com
(303) 689-9693
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