INVESTMENT BANKING PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 22. INVESTMENT BANKING

 

A Raising capital Ruth Henly works in an investment bank in New York. “Unlike commercial banks, investment banks like ours don’t lend money. Instead we act as intermediaries between companies and investors. We help companies and governments raise capital by issuing securities such as stocks and bonds – that is, we offer them for sale. We often underwrite securities issues: in other words, we guarantee to buy the securities ourselves if we can’t find other purchases. B Mergers and acquisitions Investment banks often represent firms in mergers and acquisitions, and divestitures. A divestiture is when a company sells a subsidiary – another company that is owns. C Consulting and research “Large corporations have their own finance and corporate development departments. But they often use an investment bank like ours because, like a consulting firm, we can offer independent advice, and we have a lot of experience in financial transactions. We also have a large network of contacts, and relationships with investors and companies that could be interested in a merger acquisition. EXERCISES 22.1 Complete the table with words from A, B and C opposite and related forms. Put a stress mark in front of the stressed syllable in each word. The first one has been done for you. 22.3 Complete the sentences form a newspaper articles with words from the box. acquiring advised divesting fees IPOs merged underwritten 1 Deutsche Telekom’s IPO was ___________ by Goldman Sachs. 2 During their acquisition of Mannesman, Vodafone were ___________ by UBS. 3 Large multinationals are always ___________ less successful parts of their business as well as ___________ successful companies. 22.3 Match the words in the box with the definitions below. Look at A, B and C opposite to help you. financial restructuring consulting firm forecasters institutional investor strategic planning pension fund subsidiary valuation 1 a company of experts providing professional advice to businesses for a fee 2 a financial institution that invests money to provide retirement income for employees 3 deciding what a company is going to do in the future.

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