15. Investment Community

  1. Steven M. Bragg

Published Online: 13 DEC 2011

DOI: 10.1002/9781118268391.ch15

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

How to Cite

Bragg, S. M. (2011) Investment Community, in The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268391.ch15

Publication History

  1. Published Online: 13 DEC 2011
  2. Published Print: 11 JUL 2011

ISBN Information

Print ISBN: 9780470912874

Online ISBN: 9781118268391

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Keywords:

  • brokers;
  • cash flow;
  • forecasting model;
  • growth rate;
  • investment banker;
  • investment market;
  • share purchase

Summary

The investment market is divided into two halves: the sell side and the buy side. Sell-side entities include investment bankers and brokerage firms, and they employ analysts, stock traders, investment bankers, and institutional salespeople. The buy side is any entity managing capital funds, such as pension funds, mutual funds, or individual investors. This chapter covers how to deal with both sides of the market. Maintaining contact with each of the brokers over a long period of time is not always cost effective, given the relatively small volume of share purchases that each one may generate. The usual process is that the company and investment banker mutually create a multiyear forecasting model of the company’s likely growth rate, cash flow, and valuation. The chapter describes several types of investors, each one with different reasons for buying, holding, and selling stock.

Controlled Vocabulary Terms

Brokers; Forecasting methods; Investors