Foundations of Investment Banking

This unit introduces the core functions, history, and regulatory environment of investment banking and the primary capital markets tools and players. Students will learn to read key financial statements, use basic valuation techniques, navigate SEC resources and market data platforms, and recognize the alternatives and ethical issues that inform M&A and capital-raising decisions.

Learning Objectives

• Analyze the roles, history, and regulatory framework of investment banking by identifying key players, describing major historical events (e.g., the dot-com boom/bust), and locating relevant filings on the SEC website
• Apply financial statement analysis to interpret income statements, calculate return on equity, and identify signs of aggressive revenue recognition
• Demonstrate foundational valuation skills by computing and comparing common valuation multiples, preparing inputs for a discounted free cash flow, and outlining basic leveraged buyout structures
• Evaluate securities and capital-raising alternatives by distinguishing stocks from bonds, using Bloomberg and SEC data to source company information, and recommending appropriate financing or transaction options