The financial services industry encompasses the investment and banking industries as subsets, and are defined as businesses whose primary business activity is money management.
While part of the same system, corporate finance professionals deal in the day-to-day financial operations, while investment bankers raise capital in the public markets. Companies are managed through corporate finance and grown through investment banking.
Business operations require huge capital, which has to be obtained and used effectively to maintain the other business functions. In order for the business to sustain itself, capital investments have to see a return. Cash inflow and outflow need to balance for the successful operations of a business, and there are a lot of elements to be considered. There are times when outflow is profitable, just as inflow can incur a cost.
Investment and finance activities are the most prominent elements of cash inflow and outflow. Both contribute to the success of a business, but there are differences when it comes to profitability.
Investment banking refers to the activities of a financial services company that provides advice on financial transactions for individuals, corporations, and governments. Investment banking is different from commercial banking services, which is what most people think of as banking. Commercial banking is the client-focused side of the banking industry, which includes taking deposits from consumers and businesses and loaning money to customers. Investment banks provide services to businesses, governments, and individuals related to complex financial transactions.
Common investment banking activities are those having to do with mergers and acquisitions, and corporate financing. When it comes to mergers and acquisitions, investment bankers can provide valuation calculations, assist in negotiations, and present opinions on transactions.
Through corporate financing, businesses can take on debt or they can issue equity, either in the form of an initial public offering or a secondary offering and investment bankers can facilitate this process, as well. When a company makes a decision to go public through an initial public offering, an investment banker may act as an intermediary between the company and investors in order to sell its initial set of shares. This process is known as underwriting. The investment banker determines the initial offering price, ensures that the IPO is compliant with regulatory requirements, and purchases the shares from the company for later sale to the public.
Investment banks may also buy and sell derivatives for clients, as well as for the firm's own accounts. Many investment banks conduct investment research for clients, and will advise corporations and individuals on how to invest their capital, even managing client accounts.
Investment banks in the United States are regulated by the Securities and Exchange Commission, which oversees the securities industry.
Corporate finance deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to shareholders, and the tools and analysis used to allocate resources. The goal is to maximize or increase shareholder value. Corporate finance involves capital budgeting and the management of working capital. Capital budgeting involves the criteria for which value-adding projects should receive investment funding, and whether to finance the investment with equity or debt capital, while the administration of the corporation's monetary funds that deal with the short-term operating balance of current assets and liabilities is working capital management.
A financial plan is the evaluation of an individual's current salary and future financial state through known variables that can be used to predict future income, asset values, and withdrawal plans. Generally, this is a spending plan based on income and expenses.
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As a commercial finance company, AR Financing offers services to a variety of industries, including staffing, freight, apparel, oil fields, manufacturing, and governments. Located in Chicago, Illinois, clients doing business through its website can submit an invoice, wait for approval, then receive funding within one to twenty-four hours. Payment is received from the client's customer, and the balance is paid to the client. Its industries, contacts, and an informational blog are featured.
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Canadian Imperial Bank of Commerce
CIBC is a Canadian multinational banking and financial services corporation headquartered at CIBC Square in Toronto, Ontario. Created through the 1961 merger of the Canadian Bank of Commerce and the Imperial Bank of Canada, it is one of the two Big Five banks founded in Toronto. Its corporate profile, investor relations, personal and business banking services, and career opportunities are featured on the site, with contacts. Mortgage and other rates are also stated.
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The US-based financial services company was founded in Los Angeles in 1931. The privately held company has offices around the world, including the Americas, Asia, Australia, and Europe. Capital offers active management services of more than forty mutual funds through its subsidiary, American Funds Distributors, as well as separately managed accounts. Its products, planning and support services, investment approach, policies, and career opportunities are set forth.
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The global, not-for-profit organization provides investment professionals with financial education, including the peer-reviewed quarterly journal, The Financial Analysts Journal, as well as an investor blog. The CFA Institute also offers the Chartered Financial Analyst designation, the Certificate in Investment Performance Measurement, the Certificate in ESG Investing, and the Investment Foundations Certificate. Membership information and educational resources are included.
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Citizens Bank is an American bank headquartered in Providence, Rhode Island, but operating in Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, D.C. Established in 1828, the bank offers personal, small business, corporate, and financial education products, including checking and savings accounts, home, student, and auto loans, and investing and wealth management.
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Clime Investment Management Limited
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FactSet is a US financial data and software company headquartered in Norwalk, Connecticut that provides client support and learning, implementation services, business advisory, data delivery, index services, portfolio data management, and transition services. Founded in 1978, FactSet provides data and analytical applications to global buy and sell-side professionals, such as portfolio managers, market research and performance analysts, investment bankers, and others.
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International Finance Institute
Offering a financial modeling program that top-rated organizations recognize, seasoned professional bankers instruct IFI courses, and its training program is the same curriculum used to train analysts by investment banking firms. Several worldwide programs are available, and their schedules, corporate training programs, syllabi, accreditation, and job placement programs are set forth. All course materials are included in the tuition payment, and contacts are posted.
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Founded in 1999, and headquartered in New York City, Investopedia publishes investment dictionaries, advice, reviews, ratings, and comparisons of financial products like securities accounts. The site includes a free stock market simulator that allows readers to practice stock trading with virtual money. Additionally, Investopedia's premium Academy courses offer instruction on various topics related to investing. Resources for financial advisors are included.
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