What are Some Real World Examples of Investment Banking?

Here are a few real-world examples of investment banking:

1. Initial public offerings (IPOs): Investment banks often help companies go public by underwriting and selling their shares to the public for the first time. For example, in 2020, Goldman Sachs and JPMorgan served as lead underwriters for the IPO of snow sports equipment company Burton.

2. Mergers and acquisitions (M&A): Investment banks advise companies on M&A transactions and help them structure and execute deals. For example, in 2019, Goldman Sachs advised on the acquisition of biotech firm Adverum by pharmaceutical company Alcon.

3. Debt and equity financing: Investment banks help companies raise capital by issuing debt or equity securities. For example, in 2020, Morgan Stanley helped biotech firm Moderna raise $1.34 billion in an equity financing round.

4. Restructuring: Investment banks may help companies restructure their operations or finances in order to improve efficiency or address financial difficulties. For example, in 2020, Goldman Sachs advised on the restructuring of troubled oil and gas company Chesapeake Energy.

5. Derivatives: Investment banks may work with clients to develop and trade derivatives, such as options and futures, to manage financial risks. For example, in 2020, Bank of America Merrill Lynch helped a client hedge its exposure to oil price fluctuations using futures contracts.

By working on these and other transactions, investment banks help companies raise capital, grow, and improve their operations.