Investment Banking

Definition

  • Bank operations that manage a bank's funding position, as well as its holdings of Treasury bills, bonds, and preferred and common stock.

Synonyms
Investment Bank

Acronyms
IBK

Related Terms and Acronyms

  • Bank Definition,
    • An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
  • Bond Definition,
    • A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
  • Canadian Bankers Association (CBA) Company Est. 1891, Canada, Very Important,
    • Professional industry association that provides information, research, advocacy, education and operational support services primarily to the banking industry.
    One of Canada's oldest business associations.
  • Common Stock (CS) Acronym,
    • A security that allocates partial ownership in a corporation, but at a lower standing than preferred stocks.
  • Corporate and Investment Banking (CIB)Acronym,
    • Investment Definition,
      • Something you put your money into in order to make money.
    • Investment Banking Division (IBD)Acronym,
      • Preferred Stock Definition,
        • A type of security that signifies part ownership in a corporation and is given preferential treatment over common stocks.
      • Real Estate Investment Banking (REIB)Acronym,
        • Return Definition,
          • Any increase in value or in income you earn on purchase or investment.
        • Return on Assets (ROA) Acronym,
          • A ratio that shows how profitable a company is when compared to its assets.
        • Return on Equity (ROE) Acronym,
          • A ratio that shows how profitable a company is when compared to shareholder equity.
        • Return on Investment (ROI) Acronym, Very Important,
          • The profit an investment generates, expressed as equity divided by cash flow.
        • Security Definition,
          • A tradable financial implement that represents ownership, the rights to ownership or debt.
          • Property designated as collateral.
          • A document stating ownership of a stock or bond.
        • Treasury Bills Definition,
          • Short-term government obligations that are payable to the bearer and sold on a discount basis; the difference between a T-bill's market or discounted price and its face or redemption value is effectively interest if the T-bill is held to maturity.
        • Underwriting (UW) Acronym, Important,
          • Assessing individuals for eligibility and issuing and distributing a financial product such as insurance, equity capital or credit.
          • The analysis of risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves evaluating the property as outlined in the appraisal report, and also evaluating the borrower's ability and willingness to repay the loan.
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