Mini Case Assignment 1
CEG GSB 703
Mini Case Assignment #1
Adam Ohanesian
Email: Adam.Ohanesian@nichols.edu
Table of Contents I. Intended roles of each of the institutions and intermediaries. a. Venture Capitalists b. Investment Bank Underwriters c. Sell-Side Analysts d. Buy-Side Analysts and Portfolio Managers e. Accounting Profession f. FASB II. Properly aligned incentives g. Venture Capitalists h. Investment Bank Underwriters i. Sell-Side Analysts j. Buy-Side Analysts k. Portfolio Managers l. Changes III. Internet Stock Market Bubble Responsibility m. My opinion n. Venture Capitalists proof o. Investment Bank Underwriters proof p. Sell-Side Analysts proof q. Buy-Side Analysts proof IV. Costs r. Investors s. Employees t. Companies
1. What is the intended role of each of the institutions and intermediaries discussed in the case for the effective functioning of capital markets?
The role of the venture capitalist is to provide capital for companies in their early stages of development. They expect a very high rate of return on their investment which is done by selling their stake to the public through an IPO or to another company in a trade. They screen good business ideas and entrepreneurial teams from bad ones. Also, they help companies until they reached a point where they are ready to face the public markets after an IPO.
The role of the investment bank underwriter is to provide advisory financial services, help companies price their offerings, underwrite the shares, and introduce them to investors.
The role of the sell-side analyst is to publish research on public companies, make buy or sell recommendations on stocks, and work with the buy-side analysts providing research before the company goes public.
The role of the buy-side analyst is to conduct industry research, communicate with the company management team,
Mini Case Assignment #1
Adam Ohanesian
Email: Adam.Ohanesian@nichols.edu
Table of Contents I. Intended roles of each of the institutions and intermediaries. a. Venture Capitalists b. Investment Bank Underwriters c. Sell-Side Analysts d. Buy-Side Analysts and Portfolio Managers e. Accounting Profession f. FASB II. Properly aligned incentives g. Venture Capitalists h. Investment Bank Underwriters i. Sell-Side Analysts j. Buy-Side Analysts k. Portfolio Managers l. Changes III. Internet Stock Market Bubble Responsibility m. My opinion n. Venture Capitalists proof o. Investment Bank Underwriters proof p. Sell-Side Analysts proof q. Buy-Side Analysts proof IV. Costs r. Investors s. Employees t. Companies
1. What is the intended role of each of the institutions and intermediaries discussed in the case for the effective functioning of capital markets?
The role of the venture capitalist is to provide capital for companies in their early stages of development. They expect a very high rate of return on their investment which is done by selling their stake to the public through an IPO or to another company in a trade. They screen good business ideas and entrepreneurial teams from bad ones. Also, they help companies until they reached a point where they are ready to face the public markets after an IPO.
The role of the investment bank underwriter is to provide advisory financial services, help companies price their offerings, underwrite the shares, and introduce them to investors.
The role of the sell-side analyst is to publish research on public companies, make buy or sell recommendations on stocks, and work with the buy-side analysts providing research before the company goes public.
The role of the buy-side analyst is to conduct industry research, communicate with the company management team,