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A8: Behavioural Qs > Understanding Industry > Flashcards

Understanding Industry Flashcards

1
Q

Investment Banking Divisions

A
  • M&A
  • Equity Capital Markets
  • Debt Capital Markets
  • Sales and Trading
  • Research
  • Leveraged Finance
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2
Q

M&A

A

Advises companies on mergers, acquisitions and divestitures, including deal structuring and valuation

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3
Q

Equity Capital Markets

A

Helps companies raise capital through equity offerings, including IPOs and secondary offerings.

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4
Q

Debt Capital Markets

A

Facilitates debt issuance for companies, such as bonds and loans, to raise capital.

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5
Q

Sales & Trading

A

Executes trades in equities, bonds, derivative and other securities on behalf of clients or the bank

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6
Q

IB research

A

Provides analysis and recommendations on stocks, bonds, market trends for clients

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7
Q

IB leveraged finance

A

Specialised in high-yield debt and loans used in LBOs and recapitalisations.

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8
Q

Consulting divisions

A
  • strategy consulting
  • management consulting
  • financial advisory
  • IT consulting
  • HR consulting
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9
Q

Strategy Consulting

A

Advises companies on high-level business strategy, market entry, growth and competitive positioning

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10
Q

Management consulting

A

Focuses on improving organisational efficiency, operations and performance management

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11
Q

Financial advisory consulting

A

Offers expertise in corporate finance, restructuring, risk management and transaction services

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12
Q

IT Consulting

A

Guides companies on digital transformation, IT strategy and technology implementation

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13
Q

HR Consulting

A

Specialises in optimising workforce performance, talent management and organisational design

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14
Q

Private Equity Divisions

A
  • Buyout
  • Growth Equity
  • Venture Capital
  • Distressed/ Turnaround
  • Real Estate PE
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15
Q

Buyout PE

A

Acquires controlling stakes in companies through LBOs

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16
Q

Growth Equity

A

Invests in companies at a later stage of development, providing capital for expansion without a full buyout

17
Q

Venture capital PE

A

Focuses on early-stage investments in startups and high-growth companies, in exchange for equity usually

18
Q

Distressed/ Turnaround PE

A

Invests in struggling companies, aiming to restructure and return them to profitability

19
Q

Real Estate PE

A

Invests in Real Estate assets or companies, typically involving property development or management

20
Q

Asset Management divisions

A
  • portfolio management - manage, balance risk and return based on client objectives
  • fund management - oversees mutual funds, ETFs, and other pooled investment vehicles, selecting assets to achieve fund goals
  • wealth management - personalised investment advice for high net worth individuals
  • quant analysis - math models and algos to guide investment strategies and portfolio construction
  • sales & distributions - focuses on selling investment to institutional and retail clients
21
Q

Portfolio management

A
  • Algorithmic Trading: Utilizes computer algorithms to execute trades automatically based on predefined criteria.
  • High-Frequency Trading (HFT): Executes a large number of trades at very high speeds to capitalize on small price discrepancies.
  • Statistical Arbitrage: Identifies pricing inefficiencies between related securities, trading to profit from these discrepancies.
  • Market Making: Provides liquidity by continuously quoting buy and sell prices, earning a profit from the bid-ask spread.
22
Q

Buy Side

A
  • Hedge Funds: Invest in a variety of assets using diverse strategies, often involving higher risk and leveraging techniques.
  • Private Equity Funds: Invest in private companies, typically aiming to improve and sell them at a profit.
  • Mutual Funds: Pools capital from many investors to invest in stocks, bonds, and other securities, managed by professionals.
  • Pension Funds: Manages retirement savings for employees, investing in a diversified portfolio to meet future obligations
23
Q

Sell side

A
  • Brokerage: Executes trades for clients, providing market access and investment advice.
  • Investment Banking: Facilitates capital raising, M&A, and other financial transactions for companies.
  • Research: Provides equity, fixed-income, and economic research to support trading and investment decisions.
  • Sales & Trading: Markets and executes the buying and selling of securities for institutional and retail clients.
24
Q

Venture Capital

A
  • Seed Stage: Provides early funding to startups to develop ideas and prototypes.
  • Early Stage: Invests in startups that have a proven concept but need capital to scale operations.
  • Growth Stage: Funds companies that are expanding rapidly but are not yet ready for an IPO or buyout.
  • Corporate Venture Capital: Large corporations invest in startups relevant to their industry to foster innovation and growth

A8: Behavioural Qs (11 decks)

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