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* Investment banking and corporate finance) is the traditional investment banks, which also involves helping clients to raise funds in capital markets and advising on mergers and acquisitions (mergers and acquisitions). This can be imposed on investors, the issuance of Security, in coordination with the bidders, or negotiating with the goal of integration. Last term of the Division on Investment banking and corporate finance, advisory group is often called the mergers and acquisitions. Create a book where the information is in the banks financial market to the meter and the potential customer, if the pitch is successful, the Bank arrange the deal for customers. Divided into general and the investment banking division (IBD) in the coverage of industry groups and product coverage. Industry coverage groups focus on a particular sector, such as health, industrial, technology, and maintaining relationships with the companies in this industry to achieve in the business for a bank. Groups of product coverage to focus on financial products, such as mergers and acquisitions, corporate finance, project finance and asset finance leasing, structured finance, and restructuring of equity and debts are high quality and work in cooperation with industry groups on the more complex needs, and specialized client.

Sales and Trade: On behalf of the Bank and its clients, the function of a large investment bank in the first place to sell products. Market makers and traders buy and sell financial products to the growing amount of money on each trade. Sales is a sales force in the investment bank, which is important to appeal to institutions and high net worth investors to trade ideas for the proposal (in the warning based on the buyers responsibility), and take orders. Contact sales offices and customer orders for the offices the right brand name, which can price and execute trades, or structure new products that fit a specific need. Restructuring activity is relatively recent derivatives also comes in play, with the staff a high degree of technical writing and arithmetic to create complex structured products which typically offer much greater margins of securities and cash infrastructure.
In 2010, and investment banks came under pressure due to the sale of complex derivatives to municipalities in Europe and the United States of America [2] strategic advice. Follows the external and internal clients on the strategies in different markets. Starting from derivatives to specific industries, companies and industries strategic place in a quantitative framework with full consideration of the macroeconomic scene. This strategy is often the way the company will operate in the market, and the direction it will take in terms of their flow, and sales staff to offer suggestions to customers as well as how structurers create new products. Banks also have to take risks through their own trade, conducted by a private group of traders who interact with customers and through the "main risk" risks undertaken by the dealer after you buy or sell the product to the customer and not hedge his total exposure. Banks seek to maximize the profitability of a certain amount of risk on the balance sheet of their own. The need for numerical ability in sales and trading has created jobs for physics, mathematics and engineering doctoral degrees and quantitative analysts.

* Search is the division which reviews companies and writes reports on their prospects, often with "buy" or "sell" ratings. While the research department may or may not generate income (on the basis of policies in different banks), and the resources that are used to assist in marketing and sales force in suggesting ideas to clients and investment banks by giving their customers. Research also works with external customers investment advice (such as institutional investors and high net worth individuals) in the hope that they are represented by these customers and sales marketing ideas of the Commercial Bank Run, and theore revenue for the company. There is a potential conflict of interest between investment banking and analysis, and analysis was published that could affect the banks profits. Even in recent years has become the relationship between investment banking and research is very organized, a Chinese wall between public and private employment.

Fundamental Analysis and the five main ratios

Fundamental analysis also known as quantitative analysis involves the detailed analysis of financial statements to assess how a company may perform in the future. Fundamental analysis is not qualitative analysis, i.e., it does take account of the intangible and hence hard-to-measure aspects of a companys operations such as the value of its goodwill, the value of any brands it may own and other intangibles. Neither does fundamental analysis encompass technical analysis where decisions to trade are based solely on a shares price and volume movements. Fundamental analysis uses real, hard data to ascertain a shares real (intrinsic) worth by examining revenues, earnings, future growth, return on equity, profit margins and other data. When positive anomalies are found i.e. a companys share appears undervalued, then the investor may consider buying in.

Investors who depend solely on fundamental analysis (Value Investors) will normally use at least five key ratios to decide whether a share represents good value or not. For these ratios to be meaningful, the comparisons should be between i) similar entities in similar sectors or industries and ii) well established businesses as distinct to start ups, or businesses in other special circumstances.

Price-to-Earnings Ratio (P/E)
One of the best-known and most valuable of the five key ratios. P/E compares a companys current share price with its past (trailing P/E) or potential earnings (forward P/E) per share. If, for example, a companys share price is currently 10 a share and the earnings over the last 12 months (a trailing P/E) were 0.50p a share, then the P/E ratio would be a value of 20 (10 divided by 0.50p). Assuming the financial performance of two companies is almost identical, then the company with the lowest P/E ratio costs less per share for the same financial outcome than the one with the higher P/E.

Price-to-Book Ratio (P/B)
The P/B indicates the amount investors are willing to pay for a share of the companys tangible assets, which by definition excludes intangible assets such as goodwill. The investor must first know the book value of all the companys fixed and current assets minus its current and long-term liabilities values which can be obtained from the balance sheet. The ratio is calculated by dividing the total value of the assets by the total number of issued shares. If the resultant ratio is less than 1, it would mean that shares can be bought in that company for less than the book value of its assets.

Debt-to-Equity Ratio (D/E)
The D/E ratio also known as Gearing indicates what proportion of shareholders funds (and some other types of debt such as loans or bonds) are being used to finance the assets of the business. It can also indicate how much money a company can safely afford to borrow over the long term. To determine the D/E ratio, the companys total long term debt is divided by shareholders equity. If a company has total debts of 1,000,000 and shareholders equity of 4,000,000 then the debt/equity ratio would be 0.25 (1,000,000 divided by 4,000,000). Where the ratio is higher than 100 the majority of the companys assets are financed through debt: if the ratio is less than 100, then the assets are financed mainly through equity.

Free Cash Flow (FCF)
Free cash flow measures how much money a company has left over after paying its overheads and taxes, making any capital investments and covering its working capital requirements. Knowing the FCF is particularly important to shareholders as it shows the amount of money thats available for dividend payments. FCF also enables the business to buy back shares, reduce or eliminate debt and invest in plant and equipment. The ratio is calculated by subtracting non-discretionary costs such as capital expenditure from the companys operating cash flow and then dividing that figure by the companys market capitalisation and total debt. Strong companies usually show positive free cash flow and the higher the FCF ratio, the better.

The price to earnings growth ratio (PEG)
This is an extended version of the P/E ratio as it takes earnings growth into account. PEG compares a companys P/E ratio to its earnings growth rate to determine whether the shares are undervalued or overvalued. The ratio is calculated by dividing a shares P/E ratio by its projected year-over-year earnings growth rate. So if for example the companys earnings per share the previous year were 15p and projected earnings per share this year are 18p that represents an earnings growth rate of 20%. On that basis if the companys P/E ratio were 30 then the PEG would be 1.5 i.e. 30/20 suggesting that the shares may be overvalued by as much as 50%. Conversely, and as a rule of thumb only, a PEG of less than 1.might suggest the shares are cheap. Generally speaking, the lower the PEG, the better the value, because each module of earnings growth costs the investor less.