Class History: Investment Banking (Summer 2019)
Course: Investment Banking (Summer 2019)
Regular classes: 7
Extra classes: 4
Total classes: 11
Class time: Saturday 2:30 PM, Room: 702
Class 1
June 15, Room 702, Time 15:00 - 17:20
Finance defined. Money market and capital market. Direct and indirect financing. Collection of funcs by the deficit group. Investment banks and their functions. Financial instruments and securities. The investment industry: planning service, management service, trading service, and information service.
Class 2
June 22, Room 702, Time 14:30 - 17:30
Financial trading services -- dealers vs. brokers. Buy side and sell side firms. Organization of a typical sell side firm. Leadership positions and staffs. A brief overview of financial regulations.
Primary and secondary market. Why do firms issue IPOs? Economic benefits of IPOs. The issuing process. The selling process -- underwriting vs. best effort. Secondary offerings. Rights offerings.
Suggestion of the midterm exam provided at the end of the class.
Midterm Exam
July 5, Time 15:00, Room 601
Class 3, Class 4 (Extra)
July 13, Room 702,
Time:
14:45 - 17:00 (Class 3)
17:00 - 18:10 (Class 4)
Project selection process: Plan-A vs. Plan-B. Optimum number of IPO for the project based on firm value. Optimum number of IPO based on TIE ratio and firm value. Optimum number of IPO based on DCC ratio and firm value.
Class 5
July 20, Time: 14:40 - 17:30
Analysis of IPOs from investors’ perspective in terms of PDF, HIR in first 30 days, HIR in first 6 months, peak delay, and other factors. Aftermarket behavior of IPOs. Recommendations for investors. Why is it not possible to choose option-1 and option-2 using conventional CID tools?
Class 6, Class 7 (Extra)
August 8, Room 702,
Time:
14:30 - 17:00 (Class 6)
17:00 - 18:00 (Class 7)
Contents of the prospectus. Determination of the offer price using P/E, P/BV, and DDM method. Prospectus investigation of GBB Power Limited (case).
Class 8, Class 9 (Extra)
August 17, Room 702,
Time:
14:30 - 17:00 (Class 8)
17:00 - 18:00 (Class 9)
Financial distress and insolvency. Flow based and stock based insolvency. Possible routes of actions when a firm is in insolvency. The liquidation process (math). Z-score (math). Net working capital. Bangladesh Bank’s CRG.
Class 10, Class 11 (Extra)
August 17, Room 702,
Time:
15:20 - 17:00 (Class 10)
17:30 - 19:40 (Class 11)
EMH concept. Types of efficiency. How to determine market efficiency. Behavioral finance. Prospect theory. Disposition effect. Why do investors take irrational decision? Why do smart investors cannot utilize the opportunities created by novice investors?
Final Exam
September 6, Room 1002, Time: 15:00 - 17:00
Syllabus: Ch 3, 4, 5, 7.