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Published:
July 21, 2020

Investment Banking For Dummies

Overview

Wrap your head around the complicated world of investment banking with this understandable and comprehensive resource 

The celebrated authors of Investment Banking For Dummies, 2nd Edition have updated and modernized their best-selling book to bring readers an invaluable and accessible volume about the investment banking industry. 

Written in the straightforward and approachable tone the For Dummies series is known for the world over, authors Matthew Krantz and Robert Johnson have created an indispensable resource for students and professionals new to investment banking. 

The book covers all the crucial topics required to understand the fundamentals of the industry, including: 

  • Strategies for different types of risk management: market, credit, operating, reputation, legal, and funding 
  • The key investment banking operations: venture capital, buyouts, M&A, equity underwriting, debt, and more 
  • The relationship between leverages buyout funds, hedge funds, and corporate and institutional clients 

Investment Banking For Dummies, 2nd Edition offers, for the first time, a brand-new chapter devoted to cryptocurrencies, and new content on “unicorn” IPOs, including Uber, Lyft, and Airbnb.  

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About The Author

Matt Krantz (Los Angeles, CA) is a nationally known financial journalist who specializes on investing topics. He has been with USA TODAY since 1999, where he covers financial markets and Wall Street, concentrating on developments affecting individual investors. In addition to covering markets for the print edition of USA TODAY, Matt writes a daily online investing column called "Ask Matt." Matt's recent books include Investing Online For Dummies and Fundamental Analysis For Dummies. Krantz is the author of Investing Online For Dummies and Fundamental Analysis For Dummies. Robert R. Johnson, (Charlottesville, VA), PhD, CFA, CAIA, is a Professor of Finance at Creighton University, where he teaches in the Master of Security Analysis and Portfolio Management Program.  He was formerly President and CEO of The American College of Financial Services and Deputy CEO of the CFA Institute. He has been extensively quoted in the global financial media.

Sample Chapters

investment banking for dummies

CHEAT SHEET

Investment banking has a big impact on the world you live in, whether you have investments or not, and understanding what investment bankers do is important. Part of investment banking has to do with mergers and acquisitions, like why companies buy other companies and what’s in it for them. Even people who aren’t big on investing sometimes get the urge to be part of an initial public offering, more commonly known as an IPO.

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Articles from
the book

Investment banking has a big impact on the world you live in, whether you have investments or not, and understanding what investment bankers do is important. Part of investment banking has to do with mergers and acquisitions, like why companies buy other companies and what’s in it for them. Even people who aren’t big on investing sometimes get the urge to be part of an initial public offering, more commonly known as an IPO.
The IPO (Initial Public Offering) still remains one of the pinnacles of what a company can achieve in its early life. When a company sells stock to the general public for the first time, it’s a sign that the company has a compelling enough story that it can attract outside investors to buy a piece of the company.
Mergers and acquisitions (M&A) is a key function of the investment banker. When companies get together and combine, which happens during mergers and acquisitions, the terms of a deal usually are straightforward. Typically, a larger company is looking to bolster a part of its business.The company could hire a team of people to build that company from scratch, pairing up researchers to design the product, finance people to price it right and control costs, marketing people to whet the consumers’ appetite, and operations people to get the product.
Research reports aren’t exactly the kinds of things you start reading and can’t put down. J. K. Rowling probably doesn’t worry much about competing with the latest research report on IBM from a major investment bank. That said, oodles of important information about a company can be stuffed into a research report.
Investment bankers spend a great deal of time constructing financial models on spreadsheets and manipulating them to arrive at values for companies, divisions, and potential projects. These models are often very complex and involve many assumptions and inputs. This article provides some ideas on how investment bankers can improve their analyses and deliver greater value to clients.
If you’re like most people, you probably figure investment banking got its start in a towering office skyscraper in New York City. But the real story of the origin of investment banking is far less metropolitan, yet arguably even more interesting. Investment banking traces its roots to the age of kings and queens.
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