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An Introduction to Debt Capital Markets

Posted on by Imarticus Learning
Reading Time: 4 minutes

Debt Capital Markets (DCM) is a dynamic market in which firms, governments, and organisations raise funds by selling debt securities to investors. It promotes large-scale economic growth, investment, and stability.

DCM refers to various financial products, including bonds, loans, and commercial paper serving a specific function. The process entails thorough preparation, review, and coordination among numerous parties, such as investment banks, underwriters, and legal consultants.

Individual and institutional investors alike carefully weigh risk and reward before engaging in DCM activity.

Explore deeper into the world of the Debt capital market in India and learn about its procedures, important stakeholders, regulatory frameworks, and vital role in defining the country’s financial environment.

If you are looking for a career in investment banking or take up an investment banking course, keep reading to learn what is debt capital markets and the varied frameworks of Debt Capital Markets.

What is Debt Capital Markets

The Debt Capital Market (DCM) is a crucial part of the financial market in which companies raise capital by selling debt securities to investors. Bonds, notes, and other fixed-income instruments are examples of debt securities. DCM promotes cash flow from investors seeking to lend money to issuers in need of capital to support their operations or projects, such as firms, governments, and financial institutions.

It issues the terms and conditions of the debt instrument in DCM, including maturity dates, repayment schedules and interest rates. These debt instruments are purchased by institutional investors and mutual funds in exchange for periodic interest payments.

DCM is crucial for the financial ecosystem as well as its importance in banking and finance courses as it allows firms to raise capital for governments to finance public initiatives. It enables investors to analyse and manage risks via debit instruments of various credit grades.

Key Terms for Understanding Debt Capital Markets

While establishing a career in banking and finance and looking for investment banking courses online, aspirants must have an understanding of what is debt capital markets and the key terms for debt capital markets. They are:

1) Bonds

Understanding the complexity of bonds is critical for participants in the debt capital market because it allows them to make informed investment decisions, manage their money effectively, and navigate the financial environment. Bonds are often classified depending on their issuer, credit rating, maturity date, and interest payment arrangements. Bonds can also be purchased and sold on the secondary market, where prices vary depending on market circumstances and investor mood.

2) Fixed Income Markets

Fixed-income markets are an essential component of debt capital markets. These marketplaces make trading various financial securities, such as bonds and treasury bills, possible. Investors buy these securities in exchange for regular interest payments and the return of principle when they mature. Fixed-income markets serve an essential role in funding governments, businesses, and other entities, allowing them to raise cash while providing investors with a stable income stream.

3) Interest Rates

Interest rates are crucial in debt capital markets as they are the agreed-upon interest rates at which borrowers agree to repay their loans over time. These rates are scrutinised by investors because they have a direct impact on the perceived value of debt instruments. Interest rate variations are significantly affected by central banks, economic circumstances, and reliability, making them a crucial driver in the dynamics of debt capital markets.

4) Primary Market

For organisations looking to raise money through debt instruments, the primary market is an essential environment in the overall structure of the debt capital markets. It serves as the initial point of issuance when debtors sell bonds or other debt securities to investors. This stage includes the underwriting and distribution methods that allow organisations to get the necessary money. The ability to navigate the primary market effectively is critical for successful borrowing endeavours

5) Secondary Market

The secondary market acts as a crucial platform for investors to buy and sell pre-existing debt instruments. Investors trade bonds and other debt instruments, resulting in liquidity and price discovery. The characteristics of this market have a substantial impact on the pricing and yield of debt instruments, making it an important component for both issuers and investors in the debt capital markets.

Debt Capital Markets Vs. Equity Capital Markets

While trying to understand what is debt capital markets, one must be clear about knowing the distinctions between debt capital markets and equity capital markets. These two important types of capital markets are two of the primal systems to study in a banking and finance course.

This is one of the primary principles to study in an investment banking course.

Aspects Debt Capital     Markets Equity Capital   Markets
Purpose To raise capital via debt securities. To raise capital via equity shares.
Ownership No requirement for ownership. Ownership transfer required to shareholders.
Risks to Issuer Fixed interest payment rates, hence low risks. No fixed payments, higher risks.
Voting Rights No voting rights. Voting rights only for shareholders.
Liquidity Higher priority. Lower priority in case of bankruptcy.
Repayment Periodic interest payments. No mandatory repayment scheme.
Risk to Investors Lower risks and predictable returns. Higher risks for potential dividends.
Returns Fixed payment rates on interest. Dividends and capital gains.
Regulatory Environment They are regulated by government agencies. It is regulated by both government and stock exchange agencies.
Exist Strategy Flexible for exit. Flexible exit only through stock trading.

Debt Capital Market in India

Let’s discuss about the role of the debt capital market in India’s economy. DCM plays a crucial role in the financial environment of India. Financial institutions like SEBI and RBI raise capital through debt securities, contributing to a substantial expansion of DCM over the years.

DCM provides a variety of investment options, including corporate, municipal and government bonds, resulting in transparency and accessibility among investors. This has further improved as a consequence of regulatory reforms and the development of electronic trading platforms. Furthermore, credit rating companies offer beneficial assessments of debt issuers, allowing for informed investment decisions.

Mutual funds, insurance firms, and individual investors seeking consistent returns and portfolio diversification are among those who invest in the debt capital market in India. The growth of the DCM illustrates India’s commitment to nurturing a vibrant financial ecosystem while serving the financial demands of its expanding economy.

Conclusion

Debt money Markets (DCM) are a significant financial platform for funding money via debt securities. DCM plays an important role in global finance, offering stability and opportunity for both issuers and investors, thanks to its extensive variety of products and expanding investor interest.

Check out Imarticus Learning’s Certified Investment Banking Operations Professional course or CIBOP course to learn what is debt capital markets and build your career in investment banking with 100% job assurance. You can have 0-3 years of work experience to take up this investment banking course. This banking and finance course will upscale you and place you in big companies.

Equity Market: Definition, How It Works, Types and Examples

Posted on by Imarticus Learning
Reading Time: 5 minutes

An equity market offers investors quick access to stocks of publicly traded companies. It offers a convenient way for investors to increase their capital and generate more profits. A range of equity markets cater to diverse categories of investors and companies.

So, understanding the intricacies of the equity market is important for every investor. Navigating its market needs extensive knowledge, analysis, and intuition. In this guide, we will discuss what is equity market, how it works, its types, and examples.

What is the equity market?

Before trading, it is important to know the equity market meaning. Well, the equity market is the meeting point of the sellers and buyers of stocks. Within the equity market, investors trade securities into two main categories: privately traded stocks and public stocks.

Investors exchange private stocks through intermediaries. It mainly represents the ownership interests in companies. This allows investors to participate in the success and growth of the business. The equity stock market offers a platform for all investors to grow their capital.

With it, the investors purchase and sell the shares based on profitability and future performance. So, it will be fair to say that equity can bring high returns to investors.

How does the equity market work?

Different mechanisms streamline the buying and selling of shares. It influenced investor behavior and stock prices.

So, after knowing what is equity in share market, understanding how it works is important. At the core, the equity market operates via several channels:

  • IPO or initial public offering

Private companies conduct an IPO when they first decide to go public and offer their shares. This process helps the companies to raise capital by selling shares to investors. When they complete the IPO, their shares get on the stock exchange list.

  • Secondary market

Once the IPO issues the equity shares, they enter the secondary market. This is where the investors buy and sell assets. The prices of the secondary equity stock market vary on the supply and demand dynamics.

  • Stock exchanges

The equity in the share market occurs on stock exchanges. These exchanges offer regulations and infrastructure important for orderly trading.

  • Market participants

After knowing what is equity trading, it is important to know the market participants. The participants are institutional investors, individual investors, brokers, traders, and market makers. Every participant plays a crucial role in shaping the market liquidity and dynamics.

  • Price discovery

An important thing in the equity market is the price discovery. Here, the interaction of the sellers and buyers determines the stock’s fair market value. For instance, when the demand for a stock increases, the price of it will rise automatically.

  • Regulation

Any investor will never know the whole equity market meaning without understanding its regulations. Different regulatory bodies strictly regulate the equity market to maintain transparency and fairness. It protects investors and prevents market manipulation.

 

Investors wanting to learn about the equity trade life cycle can opt for Investment Banking course.

 

Different types of equity market

Many novice investors ask, what is equity market? What are the types? There are four types of equity markets. The types depend on many factors, like company size, geography, and trading methods.

  • Primary market

It is one of the types of equity market that investors use to issue new shares via IPO. This type helps investors raise their capital by selling ownership stakes for the first time.

  • Secondary market

The secondary market is mainly the stock market. Here, the investors buy and sell the issued shares.

  • Public market

One of the most important types of equity market is the public market. It is for the general public. So, anyone can purchase and sell shares on stock exchanges.

  • Private market

When investors are involved in the trading of shares in private companies, it refers to the private market.

So, these are the types of equity market. Every market comes with its own characteristics and investment opportunities. Anyone looking to expand their knowledge in the equity market can enroll in the Investment Banking course. Through this extensive program, one could become an equity expert. 

Different types of equity market

Trading in the equity market

After understanding the concept of what is equity in share market, learning how to trade is important. In the stock market, investors make offers to buy stocks at a specific price. But, the sellers ask for a certain price. After a proper negotiation, a sale happens.

  • Often, several investors want the same stocks. In that case, the first bidder always gets the stock. When a buyer wants to pay any price to buy the stock, they purchase it at market value. Likewise, whenever a seller accepts any stock price, they sell at the market value.
  • When companies sell their stocks on the market, they become publicly traded. Here, every stock represents ownership, and it attracts investors. So, when the companies perform well, the stock value increases, and investors get rewards.
  • To get a clear understanding of what is equity trading, investors must know the potential risks. Whenever the companies struggle, the stock price value always drops. But, investors can buy and sell stocks quickly.

Examples of equity market

It is important to know the examples of the equity market to understand the equity market meaning properly. So some examples are: 

  • National stock exchange (NSE) and Bombay stock exchange (BSE)

These two stock exchanges are the most popular and largest stock exchanges. It lists a wide range of companies in India.

  • New York stock exchange (NYSE)

Another significant stock exchange is the New York Stock Exchange or NYSE. It features companies from the US and other International companies.

  • NASDAQ

This equity stock market exchange is famous for its growth and technology-oriented companies. It is a leading stock exchange that streamlines the trading of shares for several innovative companies.

  • London stock exchange

It is one of the most established and oldest stock exchanges. This stock exchange features companies from different sectors.

In conclusion

The equity market has become a significant platform of the global economic system. It allows investors to improve their growth potential. But, anyone who wants to trade in the equity market must have an understanding of what is equity market.

With the basic idea, they can target specific stocks and invest in the most suitable stocks. To learn the fundamentals of the financial market and equity in-depth, enroll in the Certified Investment Banking Operations Professional course.

This Imarticus program is suitable for every type of learner. Through this, learning crucial skills is possible. Investors can also get a clear view of what is equity in share market, which helps in future trading.

FAQ’s

Is the stock a kind of equity?

Yes, the stock represents the ownership equity in a company. It entitles the shareholders to a proportional share of the earnings and assets.

What is the difference between shares and equity?

To know the equity market meaning, it is important to understand the difference between shares and equity. Shares refer to the individual units of ownership in a company. However, equity is the total ownership interest of the shareholder.

What is the formula of equity?

Investors can calculate the equity based on the difference between liabilities and a company’s assets. It means the formula is: Equity= Assets – Liabilities.

Can anyone do online equity trading?

Yes, investors can do online equity trading using online broker platforms. For that, they have to open a trading account to invest in the live equity market.

Forecasting Investment Returns

Posted on by Imarticus Learning

Reading Time: 4 minutesFinancial forecasting is the method of estimating or predicting how a business will be carried out in the future. This method uses statistics as inputs to make informed estimates that can predict the path of destiny events. Forecasting is widely used in commercial enterprises and investing to make informed managerial decisions and capital allocations and to estimate corporate profits for subsequent durations. 

Investors use forecasting to determine if activities affecting an organisation, including sales expectancies, will grow or lower the stock fee in that company. Aspiring investment bankers can opt for an investment banker course to gain expertise in mergers and acquisitions, capital raising, and other key aspects of investment banking. 

Methods of Forecasting Investment Returns

There are several methods of forecasting investment returns:

  • Quantitative Methods: These methods use historical facts and statistical fashions to expect future performance. Examples include the straight-line technique, moving averages, and simple linear and multiple linear regression.
  • Qualitative Methods: Making predictions, in this case, depends on expert reviews, market research, and other non-statistical facts. Examples are the Delphi approach and situation evaluation.
  • Artificial Intelligence (AI) Methods: These strategies use system-getting-to-know algorithms to research large quantities of records and make predictions. Examples include neural networks and choice trees.
  • Hybrid Methods: These techniques integrate quantitative and qualitative techniques to make predictions. Examples— the Bayesian technique and the ARIMA model.

Factors Affecting Investment Returns

Of the various factors influencing investment returns, some of the most common ones are listed below:

  • Income per capita: The average income and the standard of living of a particular area can affect investment returns. The higher the per capita income, the more the investing power.
  • Political and security: Political stability and security can affect investment returns, as instability can result in uncertainty and threat.
  • Interest charges: Interest prices can impact investment returns, as high-interest quotes could make borrowing more expensive and boost the possibility of investing.
  • Economic increase: Economic changes can impact investment returns, as a boom can lead to expanded demand and higher returns.
  • Confidence/expectations: Confidence inside the marketplace and expectancies for overall performance can affect investment returns.
  • Availability of finance from banks: The availability of finance from banks can impact funding returns, as it can affect the price of borrowing and the ease of acquiring financing.
  • Asset allocation: Asset allocation is a crucial driving force of investment returns because allocating investments throughout extraordinary asset classes can impact returns.
  • Stock selection: The choice of stocks can affect investment returns because the performance of individual shares can vary broadly.
  • Costs: Investment costs, including taxes and fees, can affect funding returns.
  • Market danger: Market hazard, consisting of hobby risk, inflation danger, currency threat, and volatility danger, can affect funding returns.
  • Liquidity risk: Liquidity danger, or the risk of being unable to sell an investment when wanted, can affect funding returns.
  • Credit risk: Credit threat, or the risk of default through a borrower, can affect funding returns.

Common Mistakes in Forecasting Investment Returns

For a successful career in banking and finance, here are some common mistakes to avoid when forecasting investment returns:

  • Relying on assumptions that aren’t backed by facts or studies: One of the most common errors is to base your forecast on assumptions that are not predicted using statistics or studies. This can lead to overestimating or underestimating your capability revenue and ignoring the elements affecting your enterprise version, value proposition, and competitive gain.
  • Ignoring uncertainties and risks: Relying on a single forecast representing your excellent-case scenario or your most probable situation can lead to overconfidence or complacency, as you may ignore the uncertainties and dangers that could affect your sales consequences.
  • Not updating your forecast frequently and continually: Neglecting to review or adjust your forecast for a long time can lead to outdated or inconsistent forecasts that do not reflect adjustments within the marketplace or your business.
  • Using inadequate forecasting strategies: Extrapolating recent tendencies into the future is the most common mistake forecasters make in any subject. This can cause inaccurate forecasts that don’t replicate modifications inside the market or your enterprise.

Learn more about these mistakes and ways to avoid them through investment banking courses online. The courses are perfect for professionals looking to upscale. Designed in collaboration with enterprise specialists, the programmes present assured placements with guaranteed interview possibilities.

Best Practices for Forecasting Investment Returns

Here are some best practices for forecasting investment returns:

  • Use historical statistics: Historical facts can provide insights into how an investment has been accomplished in the past and can help predict future performance. These statistics can encompass financial statements, market tendencies, and economic signs.
  • Consider professional reviews: Expert critics can provide insights into marketplace developments and funding possibilities. 
  • Use multiple strategies: Using more than one method to forecast investment returns can reduce the chance of counting on a single technique. Methods include marketplace research, historical data, expert reviews, and assumptions.
  • Be realistic: It is essential to be realistic while forecasting funding returns. Overly optimistic projections can result in terrible funding choices and monetary losses.
  • Monitor and regulate forecasts: Financial forecasts are never 100% accurate and tend to change over time.
  • Use forecasting software: Using forecasting software programs can help automate tasks and improve the accuracy of forecasts. This includes software programs for financial modelling, records analysis, and scenario-making plans.

Conclusion

Forecasting investment returns is challenging because of stock markets’ inherent risks, uncertainty, and dynamic nature. While forecasting strategies can provide valuable insights, it’s critical to recall the constraints of expected return calculations and evaluate the dangerous characteristics of funding possibilities before making any funding decisions. To pursue a career in investment banking, enrolling in a comprehensive investment banking course that covers financial modelling, valuation techniques, and market analysis is advisable.

Imarticus Learning offers a Certified Investment Banking Operations Professional (CIBOP) programme for those seeking investment banking certification. The banking and finance course is offered in collaboration with Euronext and consists of detailed classes on trading simulations and case research with an industry-aligned curriculum shape. It provides an in-depth understanding of complex economic products, risk management, and anti-money laundering laws, among other areas. The banking course allows fresh graduates to learn about the fundamentals of money markets and even offers guidance on cracking interviews. 

How Is an Investment Banking Certification Worth the Investment? A Comprehensive Guide to Investment Banking Certifications

Posted on by Imarticus Learning

Reading Time: 3 minutes

What do investment bankers do?

If you aim to work in the finance sector, then you must’ve stumbled upon the question that what investment bankers do. Investment bankers deal with capital raising, mergers, and acquisitions advice given to government organisations, banks, Multinational companies, or corporations. They help people or organisations to raise capital.

Investment bankers also provide financial consultancy services. Investment bankers act as an intermediary between investors and security issuers. Since this has answered your question about what investment bankers do, let’s step on to the next part where we will discuss how to become an investment banker.

How is investment banking certification worth the investment?

Investment bankers are the highest-paid personnel in the banking industry. This alone makes it worth getting an Investment Banking Certification. But if you are looking for additional perks, then there are other factors as well.

With more remuneration, comes higher competition. It requires intensive preparation and training that only a good Investment Banking Certification can provide. If you think that this is the field that you want to work in, then you can opt for online courses as well. It helps you to keep working while gaining your Investment Banking Certification.

An Investment Banking Certification ensures that you are aware of the market and its trends to be job-ready. It helps you to work in business and non-business fields for the core as well as relevant career paths in investment banking. With Investment Banking Certification, you can also get jobs related to areas like:

  • Equity research

  • credit analysis

  • Project Finance

  • Capital market

  • Portfolio management etc

Along with this, an Investment Banking Certification allows the learners to gain a diverse understanding of the practical applications and ideas of finance through a well-designed curriculum. You also get to work on real-world projects which helps you in real-world situations.

Online Investment Banking courses help you to adopt a more flexible structure which helps you to boost your existing career. It increases your overall competency and may even lead to promotion. It increases your earning potential and is a sure way to rapid career growth.

You also get to work on how experts assist organizations, businesses, and people with the management and growth of their financial assets.

Any Investment Banking Certification also helps you to aid the companies to make informed choices that are relevant to an investment in their firms’ assets that increases the value of their capital.

A Comprehensive Guide to Investment Banking Certifications

1. Subjects

Under a proper Investment Banking Certification, you get to learn topics like:

  • Principles of Management and organizational behaviour

  • Business Analysis tools

  • Quantitative Techniques for Management

  • Total quality management

  • Industrial project management

  • Purchasing and procurement management

  • Management Information systems

  • Business Environment and Ethics

  • Managerial Economics Supply chain management

  • Information technology

  • Project Management and Documentation

  • Corporate communication

  • Strategic management

  • Human resources management

  • Enterprise resource and planning

2. Eligibility

To become an investment banker, you need to have little experience in the finance sector. The eligibility criteria for the Investment Banking Certification are:

  • Freshers with 0-3 years from non-STEM fields with a background in Finance and business management streams.

  • Applicants with a justified gap of up to 1 year can also apply for the certification.

Why choose Imarticus Learning for Investment Banking Certification?

Imarticus Learning offers the flagship certified investment banking operations professional course in live online training mode. The classes are offered on weekdays and weekends for the ease of learning that varies if you are working or not. We have collaborations with over 500+ companies for a secured chance of placement with around a 60% average salary hike. The Investment Banking Certification course has enabled over 40,00 placements.

The Investment Banking Certification course includes topics such as:

  • Introduction to financial markets

  • Trade life cycle

  • Risk management

  • Financial markets

  • Regulatory environment

Along with this, you also get benefits like:

  • Career support- Here you will get placement support such as placement preparation, mock interviews, and resume-building sessions.

  • Our expert faculty delivers our robust curriculum using hands-on training methods. You get constant support for your learning experience with an interactive module.

  • With this Investment Banking Certification, you get to implement what you’ve learned with real-world projects. You also understand how to solve business problems and case studies specially formulated by our industry partners.

This industry-approved program is best for learners who have around 3 years of experience in the industry. This Investment Banking Certification helps you to boost your career with a 100% job guarantee.

Our alumni work at:

  • Citibank

  • Capgemini

  • BNP Paribas

  • Bank of America

  • Genpact

  • Stanley Morgan

  • Goldman Sachs

  • UBS

  • RBS

  • J.P Morgan

Underwriting and Securities Offerings in Investment Banking

Posted on by Imarticus Learning

Reading Time: 4 minutesInvestment banking is a phase of financial services that seeks to raise money for individuals, organisations, and governments. One of the services investment banks provide is underwriting, which entails demanding price ranges from traders in the form of debt or equity on behalf of a consumer. 

Investment banks also underwrite other properties, which include stocks, through an initial public offering (IPO) or any later secondary public offering. Underwriting securities facilitates the perception of the organisation’s underlying worth relative to the chance of financing its IPO. In addition to underwriting, investment banks offer funding control and supervise them for clients, allow IPOs, and undertake market research and analysis to aid in making investment choices for the bank and its clients. 

This blog will discover the procedure of underwriting and securities services in investment banking, such as the varieties of underwriting, the underwriting system, and the function of investment bankers in making a successful IPO. If you seek a career in investment banking, look for investment banker courses from reputed online platforms and master the concepts of underwriting and other aspects of this financial service sector in detail.

Types and Phases of Underwriting Transactions

Here are the types and phases of underwriting:

Phases of underwriting consist of:

  • Planning and Market Research: The investment bank will conduct market research to decide the demand for the securities and the ideal fee range. They can even decide the size of the difficulty and the timing of the presentation.
  • Structuring the Issue: The investment bank must define the risk structure once the planning and market studies are complete. In this regard, it’ll need to determine whether or not to put the risk locally or internationally, whether or not traders constitute institutions, whether there will be participation from retail investors, what’s going to be the very last risk rate, and how will the sale absolutely arise.
  • Distribution: The investment bank will then distribute the securities to investors. This may be achieved through several channels, together with institutional traders, retail buyers, and other investment banks.

Types of underwriting encompass:

  • Loan Underwriting: This kind of underwriting is used to assess the risk of a mortgage. For a lender, the chance is of default or non-charge.
  • Insurance Underwriting: This kind of underwriting is used to decide the risk of a policyholder submitting a claim that needs to be paid out before the policy has ended up profitable.
  • Securities Underwriting: This kind of underwriting seeks to assess the risk, and an appropriate rate of specific securities—most usually associated with an IPO—is finished on behalf of a capacity investor, frequently a funding financial institution. Based on the outcomes of the underwriting method, a funding financial institution could purchase (underwrite) securities issued by using the organisation trying the IPO and then promote the securities in the marketplace.

Investment banking courses online can equip you with a deeper understanding of the various types of underwriting, their components and how to handle each.

The Underwriting Process

Underwriting is when an investment bank raises capital from institutional investors on behalf of a client in the form of debt or equity. A successful career in banking and finance requires knowing the nitty-gritty of the underwriting process. It involves the following steps:

  1. Selection of Investment Bank: The employer or entity searching to raise capital should choose and rent a financial institution or group of investment banks to kick off the underwriting manner.
  2. Underwriting Type: In “firm commitment” underwriting, an investment bank undertakes to acquire the full issue of securities from the client at a set price. The price is lower than at which securities will be offered to the public. In “best efforts” underwriting, the investment bank undertakes to sell as many securities as feasible at the best available price but does not guarantee the sale of the whole issue.
  3. Planning: Identifying investor themes, the know-how of investment motive, and estimating anticipated investor call for or interest.
  4. Assessing the Timing and Demand: Understanding the marketplace situations and investor demand for the supplied securities.
  5. Issue Structure: Determining the shape of the problem, such as whether or not to position the risk locally or across the world, whether or not investors represent institutions, whether there will be participation from retail investors, what is going to the very last fee of the risk be, and how will the sale virtually arise.

Enrol in an investment banking course to become proficient in the underwriting process. 

Risks and Considerations in Underwriting

Investment bankers tend to take major risks when they underwrite any public issue. Hence they generally evaluate numerous critical considerations before determining whether or not to underwrite an issue. Some of the risks and factors in underwriting in investment banking are:

  • Market Timing: The timing of the market is the most crucial aspect investment bankers consider before underwriting.
  • Public Opinion: Public opinion is another critical factor investment bankers consider before underwriting. Underwriting might fail if the public perceives the employer or industry negatively.
  • Red Flags: Underwriters must search for any warning signs, consisting of irregularities, discrepancies, or adjustments that might imply accounting problems, fraud, or different capacity risks that aren’t immediately apparent.

Securities Offerings

Investment banks are key in issuing the latest corporate and government securities. When a company or organisation wants to raise funds, it can do so by issuing and selling new securities, including stocks or bonds. Investment banks help these organisations issue and sell new securities, including underwriting new debt and fairness securities for all kinds of corporations, assisting with selling securities and supporting and facilitating mergers and acquisitions, reorganisations, and dealer trades for each institution and personal traders. 

Companies issuing stocks and bonds may use investment banks to facilitate the procedure, along with figuring out the cost and riskiness of the business enterprise, figuring out charges, and underwriting and selling the securities to the public or privately in a supposed private placement. 

Investment banks may syndicate a new securities difficulty, involving a group of investment banks working collectively to underwrite and sell the securities. This can help spread the risk among more than one bank and increase the likelihood of a successful offering.

Conclusion

Underwriting includes assessing each applicant or party’s risks when giving or receiving a mortgage, signing coverage contracts, or shopping for and selling securities. Investment banks make cash by charging fees for their offerings, including underwriting, advisory, and trading commissions. Investment banking requires more than a few skills: monetary evaluation, conversation, and negotiation. Earning an investment banking certification might help you understand investment banks’ vital function in the financial markets.

The Certified Investment Banking Operations Professional (CIBOP) is a comprehensive 180-hour online investment banking course offered by Imarticus Learning. This banking and finance course offers candidates exposure to capital market products of both listed and OTC trading lifecycles, AML KYC, and risk management. The curriculum focuses on teaching the capital market operations section within an investment bank. It is ideal for aspiring candidates looking to land jobs in global investment banks. Enrol in this banking course to start on the road to success.

Corporate Action and The Different Types of Corporate Action

Posted on by Imarticus Learning

Reading Time: 4 minutesCorporate action comprises crucial decisions made by companies, like mergers, acquisitions, stock splits, dividends, and rights issues. These choices greatly impact a company’s direction and relationships with shareholders. Knowing about these actions is key to understanding how businesses grow and change in the world of commerce and finance.

In investment banking, corporate action plays a big role. Investment bankers pay close attention to these moves because they affect how companies are valued and seen in the market. Whether it’s mergers, acquisitions, or dividends, these actions influence investment plans and strategies, making it important for bankers to understand them well.

This article will provide a clear understanding of corporate action types and their importance in both business and investment banking landscapes.

What is Corporate Action?

Corporate Action refers to significant actions undertaken by a company, impacting stakeholders like shareholders and investors. These actions have far-reaching implications for shareholder equity, voting rights, and overall investment value, necessitating a thorough understanding and effective management by investors, financial institutions, and the company itself. These actions are broadly classified into two types: Mandatory and Voluntary Corporate Actions.

Mandatory Corporate Action

These are non-discretionary events executed by a company without needing explicit consent from shareholders. Examples include stock splits, mergers, acquisitions, and rights issues. Shareholders are obliged to participate based on predefined conditions or legal requirements, without the option to opt in or out of these actions.

Voluntary Corporate Action

Contrarily, Voluntary Corporate Actions provide shareholders with the choice to participate or abstain from a proposed corporate event. Dividend payments, tender offers, rights offerings, and stock buybacks fall under this category. Shareholders have the freedom to decide whether to sell their rights, engage in buyback programs, or accept tender offers based on terms offered by the company.

It determines the level of control and decision-making power they have concerning different corporate events initiated by the company, influencing their involvement and potential impact on their investments.

Different Corporate Actions Explained

Here’s a breakdown of different Corporate Actions:

Stock Splits

A Stock Split divides a company’s current shares into several shares. For example, in a 2-for-1 split, investors receive an extra share for each share they own. This action doubles the number of shares for each investor but lowers the share price.

Despite the increase in quantity and decrease in price, the total market value of the company remains the same. Companies typically opt for stock splits to make their shares more affordable for investors, potentially increasing liquidity and trading activity in the market.

Dividend Distributions

Dividend Distributions are payments made by companies to their shareholders from their profits. These payments can be in the form of cash or additional shares. Cash dividends involve a set amount of money per share owned by the shareholder, providing them with a direct monetary return on their investment. 

Alternatively, companies may issue dividends in the form of additional shares, known as stock dividends. This rewards shareholders by increasing their ownership in the company without the company spending cash.

Mergers and Acquisitions

Mergers refer to the blending of two companies, combining their assets, operations, and resources to form a single, new entity. It’s akin to a partnership where both companies agree to work together as equals, resulting in a new, unified organisation. In contrast, Acquisitions occur when one company purchases another outright. 

Here, one company, known as the acquiring or parent company, assumes control over the acquired or target company. This could happen for various reasons, such as expanding into new markets, gaining access to new technologies or products, or even removing a competitor from the market. 

Rights Issues

Rights Issues are an offering made by a company to its existing shareholders, granting them the chance to buy additional shares at a discounted price compared to the prevailing market rate. This opportunity is usually offered in proportion to the number of shares already held by each shareholder. 

Companies opt for Rights Issues to raise capital from their existing shareholders without involving external investors or incurring additional debt. By offering shares at a discounted rate, companies aim to incentivise their shareholders to invest more in the company, providing funds for various purposes like expansion, debt repayment, or new investments.

Contingent Value Rights (CVRs)

Contingent Value Rights (CVRs) are special rights granted to shareholders that offer additional benefits based on specific future events. These rights might be attached to an acquisition or merger deal, typically tied to specific milestones or achievements. 

For instance, if a pharmaceutical company acquires another company with a promising drug in its pipeline, CVRs might be issued to the acquired company’s shareholders. The CVRs entitle shareholders to receive additional payments or benefits if the drug achieves certain regulatory approvals or sales targets within a specified timeframe. CVRs provide shareholders with the opportunity to potentially benefit from the success of a particular asset or event.

Spinoffs

Spinoffs occur when a company decides to separate a part of its business into a new, independent entity, creating a distinct company out of a division or subsidiary. These new entities operate independently from the parent company. Shareholders of the parent company often receive shares of the newly formed company in proportion to their holdings in the parent company. Spinoffs can allow companies to focus on their core businesses, unlock value in underappreciated divisions, or streamline operations.

Name or Trading Symbol Changes 

Companies might opt to change their name or trading symbol for various reasons, such as rebranding, mergers, acquisitions, or strategic shifts in business focus. Name changes usually reflect alterations in the company’s identity and branding, or to align with new market strategies. Similarly, trading symbol changes occur to signify corporate changes, making it easier for investors to identify the company in the stock market.

Liquidation

Liquidation is the process of closing down a company’s operations, selling its assets, paying off its debts, and distributing any remaining funds to its shareholders. This typically happens when a company is insolvent, unable to pay its debts, or when it decides to cease operations. Liquidation can be voluntary, as decided by the company’s management or shareholders, or it can be forced through bankruptcy proceedings initiated by creditors.

Conclusion

Corporate Action is like a company’s compass, guiding important choices that shape its path in the business world. These actions, whether it’s mergers, dividends, or other changes, define how companies grow and affect their value for everyone involved. 

Getting certified, especially through programs like the Certified Investment Banking Operations Professional Course from Imarticus Learning, can really boost your career in banking. This certification isn’t just a fancy addition to your resume; it’s a deep dive into how Corporate Actions work alongside other crucial aspects of banking operations. So, if you’re eyeing a thriving career in banking, this certification might just be the ticket to get you there.

Analysing the Impact of Global Events on Financial Markets

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Reading Time: 3 minutesThe financial markets are intricate environments shaped by a multitude of factors, with global events exerting a considerable influence on their course. Shifts in economic, international relations, or political conditions often directly affect stock prices and the overall performance of financial markets.

This article explores the intricate relationship between global events and financial markets, analysing the significant repercussions that geopolitical, economic, and societal events can impose on investment landscapes.

Economic Indicators 

A global economic slum affecting several countries can greatly impact stock markets and economies worldwide. A notable example of one such crisis is the 2007–2008 Financial Crisis, widely known as the subprime mortgage crisis.

The beginning of this crisis has found its connections to the unravelling of a bundle of mortgage-backed securities on Wall Street. The reason behind this was the failure of the Supreme Mortgages. This led to a major financial disaster, as many US residents became homeless and major financial institutions collapsed. The implications of this were faced by other global markets, such as Canadian and Asian, that had nothing to do with the activities taking place on Wall Street. 

Natural Disasters and Environmental Events

Natural disasters and environmental events can exert both direct and indirect impacts on financial markets. These events possess the capacity to disturb business operations, disrupt supply chains, and impact consumer demand, thereby causing increased volatility in the stock market.

An illustration of a natural disaster causing upheaval in the financial market is Hurricane Katrina, which struck in 2005. Oil prices spiked up to $70 per barrel as offshore drilling platforms were damaged. It ultimately caused huge damage to the US oil production capacity in the Gulf of Mexico.

Global Health Crisis

The COVID-19 pandemic serves as a recent and vivid example of how global health crises can profoundly impact financial markets. Stock markets declined over 30%, and the pandemic triggered a worldwide economic downturn, causing widespread market sell-offs in the early 2020s. 

Specific sectors, such as technology and healthcare, experienced relative resilience, while other sectors, such as travel and hospitality, faced severe challenges. 

Geopolitical Events

Geopolitical conflicts can yield significant consequences for the worldwide financial market. A prime example is the 2016 Brexit referendum, where the United Kingdom opted to exit the European Union, introducing a heightened level of uncertainty. This decision sparked extensive volatility across diverse asset classes.

The most immediate effect of the referendum was on the British pound. As the referendum results unfolded, the pound experienced a sharp decline against major currencies. 

Trade Disputes

Lastly, trade tensions across major economies can cause significant market volatility. From introducing uncertainty to disrupting supply chains, they carry the potential to impact the economic prospects of involved countries. 

One notable example that vividly illustrates this phenomenon is the US-China Trade War that unfolded in 2018. It escalated with both countries imposing tariffs on each other’s goods.

 A total amount of $300 billion was imposed on US imports from China by the US government. It caused a significant increase in the tariff rate (17.5%). 

In response to this, China increased the average tariff that was applied to US exports to as much as 20.4%.

The most immediate result of this was faced by the companies that relied heavily on global supply chains, especially those with exposure to US-China trade. Corporate profits declined, thereby leading to concerns among investors about the financial health of affected companies.

Conclusion

The relationship between financial markets and global events is multifaceted. Investors need to be cautious in monitoring geopolitical developments, economic indicators, and environmental factors to make well-informed decisions. The interconnected nature of today’s globalised economy ensures that events in one part of the world can have serious consequences for financial markets everywhere. 

If you wish to know more about how global events can impact financial markets or simply want to pursue a career in the field of finance, you can check out investment banking courses online. 

One such among the available banking certification courses is the Certified Investment Banking Operations Professional course brought to you by Imarticus Learning. This program is specifically designed for finance graduates with 0-3 years of experience.

In addition, it also brings forth several advantages, some of which include industry-recognised certification, extensive career support, 100% job assurance, and access to live training modules, among others. 

Static and Dynamic Data: A Comprehensive Approach to Financial Market Forecasting

Posted on by Imarticus Learning

Reading Time: 3 minutesIn today’s fast-paced world of financial markets, the importance of accurate forecasting has increased manifold. It has become a crucial component for making well-informed investment decisions. 

Gone are the days when businesses simply focused on the traditional methods of forecasting, which included static data, historical trends, and fundamental analysis.

As financial markets evolved, the integration of dynamic data became increasingly essential.

In this article, we will explore the comprehensive approach of combining static data and dynamic data for more accurate financial market forecasting. While investment banking courses after graduation may cover these in brief, let us give you an in-depth overview of these concepts for better understanding. 

What Do We Mean by Static Data?

Static data refers to the historical information that remains constant over time, providing a foundation for understanding market behaviour. This includes historical price movements, earning reports, and economic indicators.

Static data enables you to make accurate calculations or reports based on events that have already occurred. It includes the following:

Historical Trends

By examining past market performance, you can identify recurring patterns and behaviours. Some of the most common tools in this aspect are chart analysis, trendlines, and moving averages. All of these are crucial for extracting valuable information from static data.

Fundamental Analysis

Static data is also crucial for fundamental analysis, which involves evaluating a company’s financial health and performance. Metrics like Earning Per Share (EPS), price-to-earnings ratio, and debt levels are useful in providing a clear view of an organisation’s stability and growth potential.

Economic Indicators

Static economic indicators such as unemployment figures, inflation rates, and GDP growth rates also contribute to understanding broader market conditions. They ultimately play a pivotal role in shaping investor sentiment. 

What Is Dynamic Data?

Dynamic data, on the other hand, represents real-time information that constantly changes. The data tends to be interactive, which denotes that you can investigate any numbers to get to the required answers, thereby enabling you to boost the decision-making process. 

Dynamic data includes market sentiments, news, social media trends, and technological advancements. By integrating dynamic data into financial analysis, you can have a more responsive and adaptive forecasting model. 

Market Sentiment Analysis

By carefully monitoring social media, news articles and forums, businesses can gather valuable insights into market sentiments. Sentiment analysis algorithms can accurately quantify the mood of market participants, thereby enabling investors to gauge potential market movements. 

News and Events

Dynamic data includes geopolitical events and corporate announcements that can have a direct impact on asset prices. By integrating real-time news feeds into forecasting models, investors can react swiftly to emerging trends. 

Technological Advancements

Lastly, technological advancements have also paved the way for forecasting models that can process huge amounts of data in real-time. 

A Comprehensive Approach

Although the concept of dynamic data seems straightforward, making static data more dynamic can be a daunting task for many. In fact, many businesses are still not aware of how to start the process of data clean-up or diligent data management. 

A comprehensive approach to financial market forecasting in this aspect can prove to be a better choice, as it allows investors to combine the strengths of static data and dynamic data.

  • Integrated analytics platform – Utilising integrated analytics platforms that combine historical data with real-time feed allows for a holistic view of market conditions.
  • Machine learning models – With the help of machine learning algorithms, you can enhance forecasting accuracy by continuously learning from both static data and dynamic data.
  • Risk management – By considering historical patterns and real-time developments, investors can better assess and mitigate risks associated with investment portfolios.

Conclusion

A comprehensive approach to forecasting that involves both static data and dynamic data is paramount for every business. The former provides a foundation, whereas the latter allows for real-time adaptation to market sentiment. By properly harnessing the synergy between these two data types, investors can not only make well-informed decisions but also optimise their investment strategies for long-term success.

If you wish to explore more such intricacies of the finance world or simply pursue a career in banking, check out the Certified Investment Banking Operations program brought to you by Imarticus Learning. With this 150-hour course, you will get to unravel the fundamentals of the financial markets. In addition to this, it also brings forth several advantages, including extensive career support, industry-recognised certification, 100% job assurance, and more!

Budgeting and Forecasting Models: Helping Businesses Reach Their Financial Goals

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Reading Time: 4 minutesBudgeting and Forecasting models are considered effective tools in the world of business. These models play a crucial role in molding the future of a business. Financial management of a particular business is carried out by certain tools, which are budgeting and forecasting methods. These methods provide a specific structure for the financial management of a business which includes making the right decisions, having financial goals, etc. While budgeting focuses on the financial triangle which provides a detailed plan about expenses and income, forecasting draws a picture of their future in terms of what they want to achieve.

Create a career in banking and finance and explore more about it through Imarticus Learning’s Certified Investment Banking Operations Professional or CIBOP course and master them yourself. This investment banking course will broaden your idea in the world of business. To have a prolific career in investment banking explore this course.

Budgeting Methods

It is a procedure that was primarily developed to keep tabs on a specific business’s expenses and revenue. These topics are considerably the two most importantly focussed ones in any banking course. Expected revenue and estimated expenditure are the two key components of it.

The earlier one discusses cash inflow, while the later one discusses cash outflow. It employs both a top-down and bottom-up strategy. They estimate the cost using a top-down method, which is then filtered by additional levels. The top-level authorities compile and estimate the final data using input from various groups in the bottom-up approach. Six techniques make up the budgeting tool. The methods are:

      1. Incremental Budgeting Method

The conventional method is where the previous year’s stats come into play. It is a widely used method that is not complex as it doesn’t have any specific formula. This method of budgeting involves adding or taking away specific numbers from the previous year’s figures to determine the budget for the current year. The business’s overall growth is taken into account when adding or subtracting.

      2. Zero-Based Budgeting Method

With this method, a complete reset is accomplished, as the name implies. The entire financial picture is reset to zero and begins with a clean slate with no prior history. The approach is risky because justifications are needed for each and every number displayed in the budget. Zero-based budgeting has many benefits for those with small businesses and extremely low revenue.

      3. Activity-Based Budgeting Method

The third option is where the goals are prioritised first. The efficient task committed by the organisation in dividing work into tiny segments where they are given a specific amount, which is further calculated as a whole. This method of budgeting is highly suggested by large companies as it provides accurate data, on the other hand, it is quite challenging for small-scale businesses as they have comparitively lower revenue.

     4. Collaborative Budgeting Method

Participation from all groups of people in the business triangle is part of a bottom-up approach where a participative approach is demonstrated. Managers provide recommendations and suggestions, which are combined to form a budget. In contrast to the conventional method, where the officials impose a specific budget on the executives, this method is more democratic because the officials at the top also offer suggestions.

    5.  Negotiated Budgeting Method

One of a kind where equity is established, it’s a highly recommended budgeting method as it has recommendations, negotiations, and arguments from different sectors in a business. The budgeting becomes more accurate, and the data is attained much more easily. It is flexible, making it easier for the employees to make last-minute changes.

    6. Value-Proposition Budgeting Method

Contrary to the conventional approach, one of the least common methods focuses primarily on planning and its impact. By placing a strong emphasis on a product’s value, this kind of budgeting eliminates idling cash flow. In accordance with this method, the businesses allocate a specific budget based on the value of the product. The value essentially summarises the budget. 

Forecasting Methods

Forecasting method in business is important as it shapes the future. In the forecasting method, certain techniques are used, which draw the picture of an upcoming trend, or events that are going to be superior. The future is visualised with the help of previous historical data or patterns which were successful in the past.

Companies who work deep in sales and marketing find forecasting methods as a blessing. It is also considered a lifesaver due to its effective way of reducing risks by predicting the future. For any banking and finance course, exploring forecasting methods is a must. Forecasting has several methods ranging from simple to complex, it is up to the companies as to choose which one.

1. Time Series Method

A frequently used method in which historical figures come into prominence, a time series method talks about data analysis with respect to the previous trends, events, etc. where revenue is shown. It has a specific formula that is used for calculation where the previous year’s revenue is multiplied with the growth rate.

2. Econometric Method

The practical application of economic theories and techniques is done to predict the changes in supplies. During the creation process, these models incorporate sophisticated data and knowledge. As suggested by its name, this kind of statistical model is useful for forecasting economic growth.

3. Judgemental Method

When launching a new product or dealing with unpredictable market conditions, judgmental forecasting models can be useful. To make predictions, various judgmental forecasting models use subjective and intuitive information. Its accuracy distinguishes it from the other methods, allowing it to add more information. This type of forecasting model is especially beneficial in research and development. Focus groups and specialist panels can provide information that a computerised model cannot.

4. Delphi Method

It is a qualitative method that prioritises expert opinion. The group theory, which states that a group can provide better suggestions than an individual, is used here. These experts are asked to answer a series of questions in rounds which leads to an estimated answer that the company wants. The accuracy of the information improves with each round as the experts update their earlier assumptions in light of new information from the panel. The technique concludes when the preset criteria are reached.

Conclusion

Budgeting and Forecasting methods are prominent in the world of business. Companies should follow certain procedures to ensure that their needs are satisfied. The use of technology to attain accuracy is a prominent technique as it molds the image of the business in an expanding world. They will be able to make better decisions as a result, which will enhance their overall financial performance.

Earn your investment banking certification through Imarticus Learning’s Certified Investment Banking Operations Professional or CIBOP course. Dive into the world of banking with the help of this solid investment banker course. Go through the latest investment banking courses online in Imarticus Learning. 

Weighted Average Cost of Capital (WACC): Forecasting Cash Flows

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Reading Time: 4 minutesEvery organisation requires financing to fund its operations. Weighted average cost of capital is the average cost that is required by a company for carrying out daily operations. It is quite similar to the required rate of return (RRR) as the WACC of a company is the amount that shareholders and investors seek as returns for their investment. One may take up an investment banking course to learn the fundamentals of WACC. 

It is a critical study that involves multiple parameters. The concept of Weighted Average Cost of Capital is of immense importance if one wants to build a career in investment banking.

Read on to improve your understanding of WACC. One may also consider signing up for an investment banking certification to enhance their knowledge.

What is the Weighted Average Cost of Capital (WACC)?

The Weighted Average Cost of Capital (WACC) represents a company’s cost of capital by assigning a proportional weight to each category of capital. WACC is a form of after-tax cost of capital that includes numerous sources such as equity, preference shares, common stocks, bonds, borrowings etc. A banking course explains the concept of WACC in a detailed manner which helps professionals earn a good grasp of this topic.

WACC is the most commonly used and convenient way to calculate the required rate of return (RRR) since WACC reflects the amount of profit for the shareholders and bondholders in exchange for their investment in a single value. The WACC of a firm tends to rise as investors always want to extract higher returns on investment. However, this will only happen if the company includes volatile stocks or if the debt is regarded as unsafe and risky.

Understanding the WACC Concept

This concept is very important for companies to analyse various aspects and components of corporate finance. WACC is an immensely integral tool for the management of the company, investors and analysts. A banking and finance course will help professionals understand the intricate details of the Weighted Average Cost of Capital. 

WACC is commonly used as a benchmark rate by organisations and their investors to assess the economic worth of a specific initiative or purchase. Hence, this discount rate is commonly used by businesses to determine their net present value or to evaluate their discounted cash flow. WACC is also necessary in the case of a merger project when one company acquires the business and assets of another firm as it provides a clear picture in terms of a higher or lower cost of capital.

Also, a business’s potential to increase its net profitability depends upon the WACC. It helps to maintain a balance between the company’s assets and the borrowed funds.

Generally, a lower WACC represents a flourishing organisation that has the ability to draw the attention of investors at a reduced cost. On the contrary, a higher WACC frequently corresponds with businesses that are often perceived as risky and reward investors with more returns.

Formula and Calculation: WACC

The WACC formula considers both the equity and debt of the company for its calculation. There are various investment banking courses online that help to enhance the proficiency in the calculation of the professionals who pursue a career in banking and finance.

The following is the formula for calculating the Weighted Average Cost of Capital:

WACC= (E/V x Re) + {D/V x Rd x (1-Tc)}

Where,

E= market value of the company’s equity

D= market value of the company’s debt

V= E+D

Re= cost of equity

Rd= cost of debt

Tc = corporate tax rate

The value of WACC is determined by multiplying each source of capital that is equity and debt with the specific weights that are assigned to them. Then each of the values is added to get the definite product. In the above-mentioned formula, the financial capital based on equity is represented as E/V and the debt capital financing is denoted by D/V.

Hence, the calculation of the WACC is the result of the addition of these two sources of finance, represented as under:

(E/V x Re) – This portrays the weighted value of the equity capital.

{D/V x Rd x (1-Tc)} – This denotes the weighted value of the debt capital.

For instance, an organisation acquires INR 10 lakhs through debt financing and INR 40 lakhs via equity financing. Then the value of E/V will be 0.8. (Rs 40,00,000 ÷ Rs 50,00,000 of total capital). Similarly, the value of D/V will be 0.2. (Rs 10,00,000 ÷ Rs 50,00,000 of total capital). 

WACC in Forecasting Cash Flows

One of the major use cases of this formula and concept is to properly estimate and forecast cash flows in the future operations of a business. For forecasting cash flows, WACC is presented as a discount rate which is used to calculate the net present value (NVP) of an initiative, project or acquisition of the company. 

The difference between the present value of cash inflows and outflows is known as the net present value. The NVP presents an idea about the profitability of the acquisition or project undertaken by the company. WACC is an integral parameter for locating various investment opportunities and judging whether the investment will result in profit or loss. 

Hence, acquiring a deep understanding of the Weighted Average Cost of Capital is essential for individuals pursuing a career in investment banking as it enhances the skills of identifying potentially profitable areas of investment. This step is a key aspect of increasing an organisation’s profitability while establishing a balance between equity and debt financing.

Conclusion

The significance of Weighted Average Cost of Capital (WACC) in the banking and finance industry is immeasurable. WACC is a very dynamic concept that has a variety of use cases, out of which, its usage in forecasting cash flows is the most notable one. 

If you are a banking and finance professional or want to start a career in finance, registering for an effective investment banker course can immensely help you gain the required knowledge.