About This Course

Investment banks play a crucial role in the capital market. One distinctive service provided by investment banks is to help firms raise fund through initial public offerings (IPOs). For instance, on September 19, 2014, Alibaba Group went public on the New York Stock Exchange, setting a historical record for the largest IPO ever. Six investment banks, including Credit Suisse, Morgan Stanley, JPMorgan Chase, Goldman Sachs, Deutsche Bank, and Citigroup, formed the underwriting syndicate for Alibaba’s IPO, selling over $21 billion worth of Alibaba shares to the market. In fact, investment banking has been around for centuries. As early as the early 17th century, the Dutch East India Company raised funds by selling stocks and bonds to the public. In addition to raising funds for companies, investment banks can also help governments raise funds by selling government bonds. For example, in the early days of the United States, the Washington government issued bonds to cover its huge fiscal deficit after the War of Independence. The services provided by investment banks are essential to the development of modern companies and government entities.

By providing financial services, investment bankers create value and wealth for themselves. Investment banks offer job opportunities in major financial centers around the world, such as London’s financial district, Manhattan’s Wall Street, and Singapore’s Marina Bay. Meanwhile, the compensation level in the investment banking industry has long been at the top of the financial sector.

The aim of this course is to reveal the key functions of investment banks in the capital market. We discuss the profit models and unique role of investment banks with finance theories, industrial practices, as well as case studies. Through this course, you will learn how investment banks help companies and governments raise funds, how they assist companies expand their business through mergers and acquisitions, how they provide trading services for market participants, and how they help investors manage their assets. The target audience for this course includes finance students and anyone interested in our course content. If you want to learn more about the role of investment banks in the financial market, we welcome you to join this online course.

Requirements

Fundamental Knowledge on finance are required.

Course Staff

Dr. Ruoran XU

The instructor of this course, Dr. Ruoran Xu, is from the School of Finance of Southwestern University of Finance and Economics. Xu holds a PhD degree from the National University of Singapore and published in internationally renowned SSCI journals. She teaches the course“Investment Banking” at both the undergraduate and postgraduate levels.

Frequently Asked Questions

What web browser should I use?

The Open edX platform works best with current versions of Chrome, Edge, Firefox, Internet Explorer, or Safari.

See our list of supported browsers for the most up-to-date information.

What are the reference books for this course?

• Stowell, D. (2017). Investment Banks, Hedge Funds, and Private Equity (3nd). Elsevier Inc.
• Pearl, J., & Rosenbaum, J. (2013). Investment banking: valuation, leveraged buyouts, and mergers and acquisitions. John Wiley & Sons.
• Gaughan, P.A. (2011). Mergers, Acquisitions, and Corporate Restructurings (5th). John Wiley & Sons.