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What You Should Know About Investment Banking

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Investment banking has garnered some big buzz in recent years. The rise of companies and IPOs and flagrant Wall Street executives have peppered the social consciousness more and more these days. But why? What is it about Investment Banking that has everyone so interested? Sure, it’s the primary means that American generate monetary wealth. But your everyday guy on the street may not know much about Iron Condor strategies and bearish markets. Yet, they know about investment banking as a whole. Here we’ll talk about the different aspects of investment banking and how you can get a piece of the action they push.

 

Openness and Versatility

Investment banking isn’t just for heady math majors. It’s not just for deep-rolling economists with scholarly views on the nature of human spending behavior. It’s for the practical and the real. It’s for people with experience in a field and an unwavering confidence in their ability to read the trends of said field. For instance, real estate investment banking is very close to the heart and the American Dream. Life, liberty, and the pursuit of happiness is deeply entrenched in the idea of owning property. Because of this, owning a home is still among the top goals and priorities of your everyday family. Real estate has a lot of psychology in it. We’re not just dealing with numbers. There’s a heavy human element, and investment banking takes this into account in its dealings.

 

Resilience

Investment banking, as an industry, is highly resilient. How and where one distributes their funds may be volatile or safe, but the act of study, analysis, and pure guts in relation to the market, will always prevail. This is why investment bankers haven’t seen a dip in their numbers. Even after depressions, wars, and crashes, there’s always a means to instill monetary confidence and profit. Because it’s not just a frivolous and cold cash generator like many seem to think. It’s trading risk for reward. It’s the very soul of choice. Educated decision making is what we do every single day. But with investment banking, the reward may be a lot more than expected. But conversely, it may plummet. That’s where the education part comes in.

 

Working International

Opportunities for investments and investment bankers are not limited to one’s locale. There are a billion different ways that an investment banking firm can make money, from all the countries around the world. One has to be able to assess how they play their international cards, but it’s definitely a possibility. So if you’re looking to expand your investments further, you could very well team up with an investment banker given their access. They have the means and the connections to make things happen on an international scale. Who wouldn’t want to get in on that kind of opportunity?

 

Investment banking is, despite all that is mentioned above, a very numbers oriented field. It’s meant to be a logical and scientific means for one to assess risk and gauge what is happening in the greater market. But, like anything worth doing, there is that human element. It’s seen in the brazen choices of some or the conservative calls of another. It’s about how you go about generating the most value for yourself and the people around you.

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Securities Commission shares investment red flags for 2021 – St. Albert TODAY

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The Alberta Securities Commission (ASC) has released a list of top investment risks in hopes of helping Albertans avoid falling victim to scams in 2021.

“We want to protect people from the scammers and fraudsters that unfortunately exist out there,” said Hilary McMeekin, director of communications and investor education with ASC.

McMeekin said fraudsters capitalize on people in any way they can, even if that means committing scams during the pandemic.

“They prey on our vulnerabilities,” she said. “We have seen an increase in activity when it comes to fraud services or products around the pandemic.”

In early January, the ASC released a list of six tips that McMeekin said will “arm Albertans with timely information to stay vigilant and protect their finances as we enter 2021.” 

The first red flag on the ASC’s list involves investments related to COVID-19. According to an ASC press release, a common way fraudsters take advantage of global events is through “pump-and-dump schemes,” which promise an opportunity to invest in new products or services that will prevent, detect or cure COVID-19 – or otherwise aid in the fight against the virus. 

These pump and dump schemes usually involve artificially inflating the price of a penny stock shell company through issuing false and misleading positive statements, according to the release. The price of the stock rises as people invest. However, the wrongdoers cash out their stock at a high price before the truth is revealed, and the price of the stock then falls dramatically, leaving investors with nothing.

Another scam ASC warns about is any investment that promises great expectations. According to McMeekin, the ASC has seen an increase in situations where investment is encouraged with the promise of high returns resulting from a proposed deal involving a letter of intent.

“Proposed deals can fall through, so if it’s being promoted as a sure thing, investors should be wary,” she said.

Affinity fraud, according to McMeekin, is another scam people should be on the lookout for this year. McMeekin said affinity fraud happens when victims are introduced to scams by someone they know, such as family members, friends or co-workers.

“Fraudsters will often target ethnic communities, religious organizations, social clubs or professional groups, taking advantage of the trust and relationships that exist within,” she said. “The fraudster becomes part of – or pretends to be part of – the community, flaunting their success or wealth and often enlisting unsuspecting ambassadors to spread the scheme to make it seem credible. Friends and family may unknowingly fall victim and encourage others to invest, too.”

Also on ASC’s list is a scam that promises quick profits by trading stocks at home. McMeekin said a lot of trouble can be avoided by just properly researching these promises.

“Research the company, research whatever the investment is for,” she said. “Really look into and understand what that product or service is all about. Learn as much as you possibly can.”

Particularly during a recession or pandemic, people can be interested in earning additional income. According to McMeekin, taking the time to research the validity of various money-making opportunities can save people a lot of hardship down the road.

“Take that time,” she said. “Our hard-earned money is worth taking the time to do the research.”

Quite often, McMeekin said, when scams are reported, the companies or persons involved have not been registered with ASC.

“The first question isn’t ‘are you registered?’ but it should be,” she said. “If they are not registered, that is a red flag.”

The ASC has a website, checkfirst.ca, which McMeekin said can help people find out if companies they plan on dealing or investing with have taken necessary steps to register with the commission.

“It’s a website that is full of unbiased and free resources for investors,” she said. “No matter what stage of investing someone is in, it can be helpful.”

Jordan Stricker, AirdrieToday.com
Follow me on Twitter @Jay_Strickz

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FCA tackles flurry of investment scams – Investment Executive

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The report indicated that the FCA received more than 24,000 reports of unauthorized activity during the 10-month period, up from 20,300 in all of 2019.

The regulator also opened 1,542 supervisory cases involving suspected scams or risky investments.

“New cases have remained high throughout the year,” the FCA said, with peaks in February, June and July.

The regulator also rejected applications for authorization from 343 firms or individuals during the 10-month period, amid concerns about possible investor harm. That represented about 10% of the applications received during the period.

The incidence of financial scams being promoted through online has also been a key focus for the regulator.

“We think online platform operators, like Google, should bear clear legal liability for the financial promotions advertised on their platforms,” the FCA said, adding that it’s considering extending rules regarding financial promotions to these kinds of companies. It’s also considering whether it needs any new powers over those firms.

“This work is relevant not just to the promotion of higher risk investments but to our work to address online harms — including scams — more generally,” the report said.

“The UK has one of the world’s leading financial services industries, offering consumers access to a wide range of investment products. In some areas however, the consumer investment market is not working as well as it should and too often consumers are offered unsuitable products or advice,” said Sheldon Mills, executive director, consumers and competition at the FCA, in a release.

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Upbeat entrepreneurs signal improved investment intentions for 2021: Survey – CTV News

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MONTREAL —
A growing number of Canadian entrepreneurs say they plan to invest more in 2021 than they did last year as the vaccine rollout, improving cash flow and a quick rebound in some sectors buoys optimism for the year ahead.

The findings of the Business Development Bank of Canada’s quarterly survey of 1,000 entrepreneurs released in a new report today are the most upbeat since the pandemic began.

Pierre Cleroux, chief economist of the Montreal-based bank, says the more positive results bode well for the country’s economic recovery.

He says investment intentions are improving, with technology emerging as the biggest focus of spending.

The bank’s survey found that the key reasons for investing in technology included improving processes to reduce costs, boosting a company’s online presence and investing in remote working.

Cleroux says while many entrepreneurs were wary about allowing employees to work from home before the pandemic, he says the last 10 months have shown it can benefit a business.

“The pandemic has changed the game,” he said. “It changed the perception of working from home.”

Cleroux said remote work can improve productivity, increase worker motivation and spur innovation.

“It can also reduce costs,” he said, noting that 18 per cent of business owners surveyed by the bank said they plan to reduce their office space.

Despite an increase in COVID-19 cases across much of the country, Cleroux said the optimism uncovered by the survey is unlikely to change.

Businesses understand that once restrictions are lifted, the economy will rebound much faster than with other recessions, he said.

“This optimism we’re seeing will likely survive the second wave of the virus because we all believe the vaccine is going to improve drastically the situation of the economy,” Cleroux said.

Still, while business confidence has improved for the first time since the pandemic began, the study found that investment intentions compared to previous years are still relatively weak.

Across Canada, business investment intentions for the next 12 months are down three per cent compared with last winter, for example, but have improved significantly from last spring’s rock bottom decrease of 32 per cent, according to the bank’s report.

Investment intentions is the difference between negative and positive business sentiment.

Of note are the investment intentions of small- and medium-sized enterprises in Atlantic Canada and Quebec, which at one per cent and four per cent, respectively, are the only positive results on investment intentions in the survey.

Meanwhile, investment intentions in B.C. are down three per cent, Ontario came in at four per cent lower, while the Prairie provinces were the lowest at a 13 per cent decline.

The online survey of business owners was completed between Dec. 3 and Dec. 18, 2020. The poll measures the confidence of entrepreneurs in the economy, business and hiring outlooks, as well as investment plans over the next 12 months.

According to the polling industry’s generally accepted standards, online surveys cannot be assigned a margin of error because they do not randomly sample the population.

This report by The Canadian Press was first published Jan. 18, 2021

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