Equity Research vs Investment Banking
Equity Research vs Investment Banking When looking at a career in the capital markets, it’s important to understand if you’re a better fit for investment banking or equity research. Both offer excellent work experience and great pay. Choosing one over the other really comes down to personality more than anything else. This guide will break...
Investment Banking Overview
What is Investment Banking? Investment banking is the division of a bank or financial institution that serves governments, corporations, and institutions by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. Investment banks act as intermediaries between investors (who have money to invest) and corporations (who require capital to grow and run their...
Lock-up Agreement
What is a Lock-Up Agreement? A lock-up agreement refers to a legally binding contract made between the insiders and underwriters of a company during its initial public offering (IPO) that prohibits them from selling any of their shares for a set period of time. These individuals may include venture capitalists, company directors, managers, executives, employees, and...
Lock-up Period
What is the Lock-up Period? A lock-up period, also called a locked-up, lock-in, or lock-out period, refers to the predetermined time frame in which corporate insiders, investors, and employees are not allowed to sell or redeem their shares after an initial public offering (IPO). It normally happens in instances where a private entity offers its...
Debt Free Cash Free Valuation
What is the Debt Free Cash Free Valuation Method? Debt Free Cash Free (DFCF) Valuation method values a business under the assumption that the business has no debt (debt free) and no excess cash (cash free). In some sense, the debt free cash free valuation method ignores the target company’s financial components (debt and cash...
