What is Equity in Investment Banking?

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A career in finance may take many paths, including investment banking and equity research. But, you need to choose the best banking courses after graduation that can prepare you for various branches of business and finance. If you want to know about equity in investment banking, then you must first understand how investment banking works and why equity is important. So, let us begin by learning what is investment banking in simple terms.

What is Investment Banking?

Investment banking is a division of any bank or financial institution that serves any organization, corporation, or even the government. Investment banking provides these institutions or corporations with underwriting for raising capital or mergers and acquisitions, as well as other advisory services. The job of investment banks is to act as an intermediary between the investors and the corporations that are in need of capital to grow their business.

Investment Banking course with placement in IndiaTo understand investment banking better, you can choose any of the multiple investment banking courses in India available online. These investment banking courses will help you understand the technicalities of investment banking better.

You can check out the certificate in Investment banking course details to see if it is one of the best banking courses after graduation you can go for.

When paying the investment banking course fees, one should look for a program that gives an in-depth knowledge of the topic at hand so that the investment is not regretted later. Out of the many investment banking courses in India, only a few cover equity in investment banking. You can check out one such certificate in investment banking course details here.

What is Equity in Investment Banking?

In finance and banking, equity is more commonly referred to as the shareholders’ equity. For privately held companies, it may also be called owner’s equity. Equity is the value that is attributable to the owners of the business. It is the value or amount of money that the shareholders of the company would be returned in case the assets of the company are liquidated and all of the debt of the company is paid off in liquidation.

In the case of acquisition, equity is the total value of the company’s sales minus any of the liabilities which is not transferred during the sale. Shareholder equity represents the book value of the company. It is one of the most important pieces of data used by analysts to assess the financial health of the company.

There are two types of equity values:

Book value - It is calculated by taking out the difference between assets and liabilities on the balance sheet of the company.

 Market value - It is determined by the current share price or estimated value of shares calculated by professionals.

When choosing what course to do for investment banking, one should zero in on a program that also teaches about shareholders’ equity in investment banking. This will not only give you a deep understanding of how investment banking works but also how equity operates along with investment banking and the difference between the two.

You should choose the program of the many investment banking courses that prepares you for the journey ahead in this industry and makes your Investment Banking career trajectory go higher.

Related article:

How To Become Equity Research Analyst

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