Introduction to the business of Investment Banking Assignment

Introduction to the business of Investment Banking - Assignment Example An ardent need was felt for having a regulator which would ensure that the trading takes place keeping the interest of the investor in the mind. Hence in 1984, a ministerial committee was formed with the sole motive of regulating the capital market of Saudi Arabia (Tadawul, 2014, p. 1). The Saudi Arabian Stock Exchange is mainly run by the Board of Saudi Arabia which includes 9 members. The Capital Market Authority of the country takes care of the recommendation through which the members of the Board are nominated. The board comprises of the Chairman as well as the Vice Chairman apart from 7 other members. The operations of Tadawul are conducted in the electronic mode. Most of the orders of buy and sell as well as the ordering system or the trading procedure take place with the help of the electronic modes. This was started since 1990 and ensures that there is very little scope for fraudulent activities or illegal trading practices in Saudi Arabian Stock Exchange. The trading session of the exchange takes place between 11 am in the morning and 3.30 pm in the afternoon. The Tadawul All Share Index or the TASI is the index which indicates the performance of the stocks which are listed in the Tadawul Stock Exchange. The stocks of more than 168 companies are traded in the stock exchange. There are a number of sectors under which he stocks are traded. These sectors include the financial, consumer goods, Healthcare, telecoms, oil and gas as well as the industrial goods and materials. The products that are mainly traded in the Tadawul Stock Exchange include the Equities, Sukuk and Bonds, Mutual Funds as well as Exchange Traded Funds. The investment banks have a very active role in the entire process of the listing of the shares as well as in the raising of the funds from individual investors as well as the corporate clients when a company goes public. The investment bank ensures that the interests of