Howdy Shoaib,
A reminder of the "Important Disclaimer: Answers and comments provided on
Google Answers are general information, and are not intended to substitute
for informed professional medical, psychiatric, psychological, tax, legal,
investment, accounting, or other professional advice."
It helps to know what we are talking about, so here is a definition of
"investment bank" from the Investor Dictionary web site.
http://www.investordictionary.com/definition/Investment+bank.aspx
"A financial intermediary firm that assist company?s in the initial sale
of securities in the primary market or facilitate mergers and acquisitions.
The main service of an investment banker is underwriting. An example of a
financial intermediary would be Goldman Sachs."
We find out from the above that an investment bank acts as a "go between"
for a company for the company's sale of securities. Securities can come in
the form of notes, stocks or bonds, etc.
It depends on the situation and what needs to be financed that determines
if an investment bank is a traditional or non-traditional funding source.
If it is a startup company, some traditional funding sources are private
investors or business loans from a traditional bank. Nonprofit companies
would seek out foundations for funding. For such companies, an investment
bank would probably be considered a non-traditional funding source.
If an existng company is looking to expand and needs an infusion of cash to
do so, then an investment bank would be considered a traditional funding
source for that type of situation.
If you need any clarification of my answer, feel free to ask.
Search strategy:
Google search on: "investment bank"
://www.google.com/search?q=%22investment+bank%22
Looking Forward, denco-ga - Google Answers Researcher |
Request for Answer Clarification by
shoaib-ga
on
07 Oct 2004 04:18 PDT
Denco researcher I am "satisfied" with the answer provided by
you but please provide to a little more clarification of
your answer. Denco researcher you had indicated above that
"depending on the situation and what needs to be financed
does the investment bank acts either as traditional or
non-traditional funding source" so therefore I want to
know that if an entrepreneur wants to purchase a
Condominium in the resort area for example in the prime
Cancun resort area of Mexico country for commercial
investment and that entrepreneuer contacts any "leading" real
estate company doing excellent business in the Cancun
resort area of Mexico country for above mentioned
Condominium purchase and that entrepreneur needs
"non-traditional real estate mortgage loan and
non-traditional equity loan" to pay for 'all' the
property purchasing costs for purchase of that mentioned
Condominium and that entrepreneur contacts international
investment bank for example Griffin Securities
international investment bank or WWW.GRIFFINSECURITIES.COM
organization for purchase of that mentioned Condominium
then in this situation that entrepreneur would be able
get that mentioned
non-traditional real estate mortgage loan and
non-traditional equity loan so as to totally complete
that property purchase
process for commercial investment ?? Thanks for that help.
|
Clarification of Answer by
denco-ga
on
07 Oct 2004 09:31 PDT
Howdy Shoaib,
Here is what Griffin Securities has to say about themselves.
http://www.griffinsecurities.com/about.asp
"Griffin Securities, Inc., is a New York City based Investment Banking
firm providing Corporate Finance, Merger & Acquisitions, Asset Management,
Brokerage and Research services for Institutional, Corporate and Private
Clients."
For the purposes that you outlined, Griffin Securities, and other investment
banks, would not be an example of a funding source for such a project.
Investment banks work on different financing than the type of transaction
you describe. Investment banks, such as Griffin Securities, generally
arrange for the issuance of stocks or bonds for a company.
The type of project you outline is not the kind where an investment bank
would issue stocks or bonds to finance. Rather, they most often issue such
securites to take a company that is already in business and make it "public"
in the sense that the public can purchase the securities issued.
Hope this helps!
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
25 Oct 2004 18:05 PDT
Denco researcher please note that the clarification you have
provided above is wrong. Denco if you take a look at the
following website;
http://www.answers.google.com/answers/threadview?id=229347
you will notice that livioflores researcher has stated that
investment banks work in the "same" way as commercial banks
with the difference that investment banks does "not" have a
depository of cash available but the commercial banks do
have depository of cash available to give that cash in the
form of 'loan' to the borowers and the investment banks
work with its "investors and providers of securities" to
arrange the "property loan and equity loan or collateral
based loan" for its borrowers to complete the property
purchase or aquisition process.
Please provide "clarification" to that mentioned statement and
thanks for that help.
|
Clarification of Answer by
denco-ga
on
25 Oct 2004 19:49 PDT
Howdy Shoaib,
Your referenced posting by my colleague livioflores-ga essentially states
what I already stated to you.
http://answers.google.com/answers/threadview?id=229347
"An investment bank operates differently. An investment bank does not have
an inventory of cash deposits to lend as a commercial bank does. In essence,
an investment bank acts as an intermediary, and matches sellers of stocks and
bonds with buyers of stocks and bonds. ... If a company needs capital ... it
may ask an investment bank to sell equity or debt (stocks or bonds)."
That said, your referenced company, Griffin Securities, would still not be
good source of non-traditional funding for a project such as the one you
outline. Investment banks are interested in funding an already existing
company for a project or expansion, and not in funding entrepreneurial
projects.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
03 Nov 2004 17:29 PST
Denco researcher please note that you have indicated above
that investment banks cannot provide the mortgage loan
according to the conditions I have indicated above. Denco
researcher please take a look at the following definition of
investment bank provided at the following website address:
An investment bank defined:
http://www.indiana.edu/~finance/ibanking.html
"Investment banking identifies, structures, and executes diverse and
innovative public and private market transactions, helping clients in
both developed and emerging markets to achieve their most important
strategic and financial objectives."
Denco you will notice that in that definition it is
written "investment bank helps clients or borrowers to
achieve their most important strategic and financial
objectives" so it means that "whatever" are the strategic
and financial objectives of the borrower investment bank
can meet those requirements or needs. So therefore please
provide "clarification" of that mentioned statement and thanks
for your help from Shoaib.
|
Clarification of Answer by
denco-ga
on
03 Nov 2004 20:48 PST
Howdy Shoaib,
If the question is "Does an investment bank exist that would or could
structure financing for the type of project outlined?" then the answer
is a greatly qualified "Maybe." Would the referenced Griffin Securities
be once such investment bank? From my reading of their web site, I do
not consider them to be such an investment bank.
There is no broad definition that one could apply to investment banks,
just as there is no one broad definition for a restaurant. Sure, they
all serve food, but you can't get good sushi at all of them.
Investment banks are the same way. There might be one that could put
together a investment package to handle the mentioned project, however
the Indiana University Undergraduate Finance Club's description of an
investment bank is not one that can be considered applicable to the real
world of investment banks as a whole.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
04 Nov 2004 17:38 PST
Denco researcher thanks for your answer above but Denco you
are still in doubt about your answer. Denco researcher please
take a look at the following website address of Kilpatrick
and Hart inc. company:
WWW.KANDH.NET
Denco please note that Kilpatrick and Hart Inc. company are
international financial consultants and are "correspondents" of
private investment banking firm arranging non-conforming
commercial real estate loans worldwide. Denco after visiting
their website then please click at the following webpage
address of that company:
http://www.kandh.net/page5.html
After visiting that webpage then please click on its link
stating "100% equity financing" is available for real estate
projects worldwide. Denco you will notice in that webpage
that private investment banking firm provides "specialized
financing" for real estate projects worldwide and that
investment banking firm can provide 100% loan-to-value real
estate or property loan and it can also provide 100% equity
loan to pay for "all" the property closing or transaction
costs even in the form of "hard equity loan".
So it means that those investment banks providing "specialized
financing" can meet any of the strategic and financial
objectives of the borrowers. Please provide "clarification"
of that mentioned statement and thanks for your help from
Shoaib.
|
Clarification of Answer by
denco-ga
on
05 Nov 2004 09:00 PST
Howdy Shoaib,
You are correct. According to the referenced document, and according to
Kilpatrick & Hart, there appears to be a private investment bank that
might consider financing a proposal such as the one you outline.
Looking Forward, denco-ga - Google Answers Researcher
|
Request for Answer Clarification by
shoaib-ga
on
16 Dec 2004 20:46 PST
Denco researcher I hope you would be fine. Denco researcher
I need answer of my another posted question but Denco
please note that if you are tired of anwering my questions
then please do not provide the answer of my another posted
question ID 443578 Denco if more money is needed I shall
increase the price of that posted question. Thanks for that
help from Shoaib.
|
Clarification of Answer by
denco-ga
on
17 Dec 2004 09:45 PST
Howdy Shoaib,
I will take a look at the referenced question.
Looking Forward, denco-ga - Google Answers Researcher
|
