How the Trading Floor Really Works

Conclusion

In most cases, entities that need cash go to the equity or debt markets to raise that cash as facilitated by a bank. In almost all instances, a bank will facilitate the raising of cash in the debt markets whether the borrower is large or small. This is because the bank will either lend the money itself in the case of small borrowers (e.g. individual borrowers) or facilitate the access to larger investors in the case of large borrowers (e.g. international companies). In contrast, the equity markets have slightly less facilitation by banks. In the case of private equity, the smaller the issuer of equity, the less likely a bank will be involved even in the facilitation of the meeting of the issuer and the investor. But as the issuer becomes ...