Invention Funding

Running Head: Funding

Funding
Introduction to Business
Written by Michael Diaz
A.I.U.
November 21, 2010

Funding     1

Abstract

An investment banker is a representative of a bank or financial firm who’s job is to raise capital for corporations, boroughs, communities, cities, towns and districts to name a few. Some of the responsibilities of an investment banker are to organize and negotiate large financial transactions. They also take on the role of advisor to company clients as well as introduce beneficial financial ventures for their own firm. What a company goes public, an investment banker will also assist in creating the value for an I.P.O., initial public offering.

The purpose of the stock market is to give firms a public forum where they can sell off portions of their company to raise capital. The portions of the company being sold are called stocks. These stocks give the shareholders a minority ownership in the company. Although the stockholders are considered part owners of a company, they do not have the decision making powers on everyday items. The capital raised by the company can be used to promote, enhance or expand the business or product line.

Financial management consists of several factors. Long term investments are one of the facets of financial management. Long term investments are contributions that will not fulfill their financial expectations for 10 or more years. Additional elements of financial management identifying, assessing and prioritizing of risk though risk management. Other attributes of financial management are obtaining funds and daily financial activities.

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There are several components to risk financing. One way is to purchase insurance or by issuing debt, that is referred to as risk transferring. Risk pooling is another element which entails the grouping the risk of a single investment with a larger investment with similar uncertainty.

The appropriate funding for a new or enhanced...