Equity capital markets
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Equity capital is raised in many ways; the major types of equity capital are , and hybrids.[1] Equity capital market practices traditionally advise on a full range of equity, debt equity-linked, hybrid, asset-backed, credit-linked and derivative products that are offered in capital markets.
An Equity Capital Market (ECM) is a market between "companies and financial institutions" that is aimed at earning money for the company.[2] Examples of financial institutions involved include Goldman Sachs and Citigroup.[2] The company gives information about their finances to the institution, and the institution helps the company increase their profits through "market transactions."[2] Institutions providing ECM services may be involved in initial public offerings (IPO),convertible bonds, and other services involving equity.[3] They may also raise money for a company merge or acquisition of another company.[4] There was a peak in the amount of profits generated through ECM in 2006-2007, but profits took a dive following those years.[4] It has been reported that ECM profits are beginning to normalize.[4]
References[]
- ^ Bragg, Steven. "Equity capital definition". AccountingTools. Retrieved 2021-10-07.
- ^ a b c Equity Capital Market (ECM), Investopedia
- ^ "Archived copy". Archived from the original on 2013-12-16. Retrieved 2013-12-02.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ a b c Tide turns for equity capital markets?
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