There are a number of ways to raise equity capital. Some of the major forms include listed equity and unlisted equity, while others are hybrids. Professionals in the equity capital markets will advise you on the full range of capital market products. There are a number of advantages to working with a professional firm specializing in equity capital markets.
Equity capital markets require a high level of detail, as any mistakes can land you in serious legal trouble. Because of this, a combination of deal experience, academics, and analytical skills is important when building an equity capital markets CV. In addition to this, you will have the opportunity to work with a variety of industry groups, making this position challenging but rewarding.
The equity capital markets are divided into two segments: the primary and secondary markets. The primary market deals with new issues and the secondary market is where existing shares are traded. The secondary market also involves futures, options, and swaps. The primary market focuses on IPOs. Both markets are crucial for a company to thrive.
Raising equity capital is a complex and time-consuming process, and involves a number of actors. Equity capital investors are more risk-tolerant than their debt market counterparts, but they are also very focused on returns. If a company is not able to meet its target returns, impatient investors may abandon the company.
