Can somone please help me write the conclusion for this essay. It must be in your own words do not copy word for word from any sites thanks.
Investment Banking and Underwriting
There are many businesses and corporations that are privately owned or operated that are very successful in their industry. Some businesses may weigh the options of transitioning from privately owned to publicly traded companies. Once a business decides to sell their company shares to the public, they may turn to investment bankers and underwriters to assist and guide them along the complicated process. The underwriters will inform both the company and the shareholders of the framework for the offering. Those duties involve, evaluating the industrial background; structuring the price amounts for the offer; and creating the company background or story to pitch to the potential investors. Once the underwriters compute the details of the offering the next step is to acquire a syndicate.
Underwriting Syndicate
An underwriting syndicate is a pool of investment bankers or brokerage firms who briefly join together to market or sell the newly formed offering to investors. The purpose of gathering or hiring a syndicate to assist the original underwriters, is to prepare an offering that is much more complicated in detail. The corporation may be massive in scale and may need the expertise of all the syndicate members and their professional field of knowledge. The syndicate will combine all the expertise of all the appointed members to configure the offering.
Risks Involved in Public Offering and Securities Laws
Purchasing of public securities has been seen to be accompanied by many significant risks. It applies to both the public and the company purchasing the securities. The period of the late 1990s was seen to be the marked by the high purchase of the new IPO. Seemingly, the prospect of the company being legitimate or not did not deter them from procuring the purchase. The companies later on realized that they had bought worthless stocks. It necessitated the creation of several legislations to minimize and avoid any form of risks posed by these enterprises. Such Federal Legislations include The Securities Act of 1993 and the Securities Exchange Act of 1934. They were followed by the Sarbanes-Oxley Act of 2002 which was created by the rise of several scandals such as the one involving Enron Company that deceived the people through the use of improper accounting (Oppel & Eichenwald, 2002). The above legislations protected investors by giving them the ability to determine the credulity of the stock before making any action of participating in the sale, buying and holding company’s stock. It, therefore, gave them knowledge on the best decision to make regarding stocks.
Foreign Exchange Risks
Dealing with foreign exchange risks has been seen to be difficult. Initial Public
Offering (IPO) has been associated with the foreign risks exchange. However, the
problem of the foreign currency rate has been seen to be counteracted through
diversification. The stock exchange experts have deemed it appropriate to deal with many
currencies concurrently. Such an action is effective as the level of currency fluctuation
has been observed to be parallel. Forwarding contracts for future trades is also another
way of combating the foreign exchange risk.
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