Corporate Finance #13 Investment Banking & Long-Term Debt
What you'll learn
- Define capital markets
- Describe government securities
- Explain what corporate securities are
- Describe the role exchanges play
- Explain the concept of market efficiency
- List and describe security markets regulations
- Describe the role of investment bankers
- Compare public and private financing
- Explain what long term debt financing is
- Describe bond prices, yields, and bond ratings and how they are used in decision making
- Basic understanding of corporate finance concepts
This course will discuss capital markets, investment banking, & long-term debt and lease financing.
We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.
Types of security markets include money markets and capital markets. Money markets are short-term in nature, with securities that have maturities of one year or less. Capital markets are long-term markets with securities that have maturities greater than one year. Our focus will be on capital markets.
Capital markets help link up businesses that need money to expand with investors who would like to find a good investment for their money.
Investment bankers often act as a middle person between the company issuing securities and the investors, the investment bankers taking on substantial risk as they play their role in the process. Investment bankers design and package securities, make offers, and sell to the public.
Commercial banks differ from investment banks. Commercial banks usually deal with individuals and small companies. They generate revenue from interest on home mortgages and small business loans.
Investment banks take much larger risks. They deal with large companies and high-risk startups. They act as a kind of bridge between the companies and the investors.
Capital intensive industries often need debt financing to grow, the most common form being corporate bonds.
We will compare and contrast debt financing and equity financing, discussing the pros and cons from the standpoint of the corporation and from that of the investor.
Who this course is for:
- Business students
- Business professionals
Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his.
Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA).
Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software.
In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible.
Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks.
Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business.
Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster.
Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts.
The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video.
Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like Udemy.