6 Investment banking vocabulary

Terms related to banking services that help companies and governments raise capital.

initial public offering (IPO) – the first sale of stock by a private company to the public.

underwriting – the process of assessing and assuming risk in exchange for a fee.

merger – the combining of two companies into one.

acquisition – the purchase of one company by another.

capital markets – financial markets for buying and selling equity and debt instruments.

equity – ownership interest in a company.

debt securities – financial instruments representing borrowed money.

securities – financial instruments that represent some type of financial value.

book building – the process of generating, capturing, and recording investor demand for shares during an IPO.