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Aspiring Investment Bankers Should Study the Tech Industry Since Tech

question 11

Essay

Aspiring investment bankers should study the tech industry since tech firms represent a large portion of firms selling shares on public stock markets for the first time. This process is known as _____.


Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.

Capital

Financial assets or the financial value of assets, such as cash, used by a company to fuel its business operations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to present value.

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