Theories and Practice of Investment Banking
Release Date: 2017-09-21Basic Information
1. Course Type: Compulsory Major Courses
2. Class Hours: 36
3. Credits: 2
4. Suitable for: Graduate Students of Finance
Course Introduction
this course includes: the development and prospect of Investment Banking, the securities underwriting business, brokerage services, mergers and acquisitions, fund management, finance engineering, project financing, risk capital operations and supervision of Investment Banking, etc.
Course Objectives
This is a specialized course of "Theories and Practices of Investment Banking" that plays an important role in modern economic activities. Through studying of this course，students will comprehensively manage development phases, main contents system and future development trends of Investment Banking, and gain an initial and general perception
Outline of Course Content
Chapter 1 The birth and development of investment banking
Overall Objective:
1. Understanding the history of investment banking.
2. Understanding main business and characteristics of investment banking.
3. Understanding the development trends of investment banking.
Contents:
1. Basic introduction of investment banking.
2. details about investment banking, its birth and development, business and characteristics, investment banking in China.
Chapter 2 Functions of investment banking
Overall Objective:
1. Understanding general intermediary functions of finance institution.
2. Understanding major functions of investment banking.
3. Understanding significance and usage of developing investment banking.
Contents:
1. General functions of investment banking.
2. Significance and usage of developing investment banking.
Chapter 3 Organizational structure of investment banking
Overall Objective: Understanding general principles of organizational structure.
1. Understanding how to project organizational structure.
2. Understanding the developing history of investment banking and characteristics itself.
3. Understanding main departments of investment banking in reality.
Contents:
1. Theories about organizational structure of investment banking.
2. History of organizational structure of investment banking.
3. Reality mode of organizational structure of investment banking.
Chapter 4 Securities issuance and underwriting
Overall Objective: Managing the registration and approval system of securities issuance.
1. Understanding conditions and procedures of securities issuance, managing main pricing theories of securities issuance.
2. Understanding conditions and procedures of bonds issuance as well as its credit rating.
Contents:
1. General introduction of security issuance.
2. Stocks issuance and underwriting.
3. Bonds issuance and underwriting.
Chapter 5 Securities brokerage
Overall Objective:
1. Understanding the Basic Meaning and characteristics of securities brokerage.
2. Understanding main body of securities brokerage.
3. Understanding procedures of securities brokerage
4. Understanding functions and risks of security brokerage
Contents:
1. General introduction of on security brokerage
2. Procedure of security brokerage.
3. Credit brokerage.
Chapter 6 Self-operated business of securities
Overall Objective:
1. Understanding concepts and characteristics of self-operated business of securities.
2. Understanding the classification of self-operated business of securities.
3. Understanding procedure and management of self-operated business of securities.
4. Understanding risk management of self-operated business of securities.
Contents:
1. General introduction to self-operated business of securities.
2. Procedure and management of self-operated business of securities.
3. Risk management of self-operated business of securities.
Chapter 7 Financial consultant
Overall Objective:
1. Understanding the objects and business the field of financial consultant.
2. Understanding related knowledge of financial consultancy for enterprises.
3. Understanding related knowledge of financial consultancy for government.
4. Understanding concepts and classification of principal financial consultancy.
5. Understanding related knowledge of investment consultancy.
Contents:
1. General introduction of financial consultancy.
2. Financial consultancy for enterprises.
3. Financial consultancy for government.
4. Principal financial consultancy.
5. Investment consultancy.
Chapter 8 Corporate mergers and acquisitions
Overall Objective:
1. Understanding the purposes and concepts of corporate mergers and acquisitions.
2. Understanding roles played by investment banks in a merger or acquisition
3. Understanding patterns of mergers and acquisitions
4. Understanding main loops that investment bank takes part in in a merger or acquisition.
5. Understanding assessment theory of Corporate mergers and acquisitions
Contents:
1. General introduction of corporate mergers and acquisitions.
2. Patterns of corporate mergers and acquisitions.
3. Main loops that investment bank takes part in in a merger or acquisition.
4. Assessment theory of corporate mergers and acquisitions.
Chapter 9 Funds management
Overall Objective:
1. Understanding the function, concepts and characteristics of funds.
2. Understanding classification and difference within investment funds.
3. Understanding initiation, establishment and management of funds.
Contents:
1. General introduction of funds management.
2. Classification of funds management.
3. Initiation and establishment of funds management.
4. Daily operation and management of funds.
Chapter 10 Derivative financial instruments
Overall Objective:
1. Understanding the function, concepts and characteristics of derivative financial instruments.
2. Understanding the similarities and differences between instruments by comparison.
3. Understanding current domestic situation of stock index futures.
4. Understanding the function and characteristics of stock option incentive plan.
Contents:
1. Futures contract and its application.
2. General introduction of options.
3. Swap Contracts and its application.
Chapter 11 Venture capital
Overall Objective:
1. Understanding the function and concepts of venture capital.
2. Studying the history of venture capital and its current domestic situation.
3. Understanding participants of venture capital.
4. Understanding operation practices of venture capital.
Contents:
1. Function and concepts of venture capital.
2. Participants of venture capital.
3. Operation practice of venture capital.
Chapter 12 Development of overseas investment banking
Overall Objective:
1. Understanding the history and current situation of investment banking in developed countries.
2. Understanding the development history in developing countries.
3. Understanding the development history in Asian emerging markets.
4. Understanding the difference and relation between an investment bank and a commercial bank in USA.
Contents:
1. General introduction of development of overseas investment banking in developed countries.
2. Investment banking in developed countries.
3. Investment banking in developing countries.
Chapter 13 Risk management of investment banking
Overall Objective:
1. Understanding the principles of risk management of investment banking as well as its classification.
2. Understanding main theories of risk management of investment banking.
3. Understanding procedures of risk management of investment banking
4. Understanding internal and external measures of risk management.
Contents:
1. General introduction of risk management.
2. The classification of risks.
3. Theories of risk management of investment banking.
4. Procedures of risk management of investment banking.
5. Measures of risk management.
Class Hours Distribution
Week 1 Chapter 1
Week 2 Chapter 2
Week 3 Chapter2
Week 4 Chapter3
Week 5 Chapter3
Week 6 Chapter4
Week 7 Chapter5
Week 8 Chapter6
Week 9 Chapter7
Week 10 Chapter8
Week 12 Chapter9
Week 13 Chapter10
Week 14 Chapter11
Week 15 Chapter12
Week 16 Chapter12
Week 17 Chapter13
Week 18 Chapter13
The total course hour is 36 (45 minutes each class hour), which will be evenly distributed in 18weeks, that is every week will have 2 course hours.
Text book
1.Teaching Material
[1]Ren Huaixiu. Business and Management of Investment Banking. Renmin University of China Press.2008
2. Additional Material
[1]Luan Hua. Theories and Practice of Investment Banking. Lixin Accounting Press.2006
3. Reading List
[1]Ma Xiaojun. Theory and Cases of Investment Banking. Mechanical Industry Press.2011
Course requirements and grading:
Grading Policy: Your grade for the course will be calculated as follows:
Regular Homework and Class Participation 30%
Final Exam 70%
Attendance: Regular attendance is an important requirement for successful performance in this course. If a student repeatedly misses classes, questions will be raised with the administration and suggesting the student withdrew from the course.
Homework problems: problem sets will be assigned regularly. All of the students will get a chance to present homework solutions in class. At this point, it is not as important to have a correct solution as it is to demonstrate that you have worked on your homework seriously. Please, start looking at problems right away so that you can ask for help if you need it. In addition to my office hours and email, you can use the homework discussion board on Blackboard for homework help. Your homework problems will help you to understand the material and to systematically prepare for exams. Class participation and homework will account for 20% of your grade.