The Wall Street Primer

Book excerpt: How does Wall Street, that great bastion of American Capitalism, really work? This book provides the multifaceted answer to that question clearly, concisely, and on a practical level for anyone seeking to better understand the inner workings of the capital markets. Tracing the dealings of a fictional company from inception to maturity, The Wall Street Primer provides the reader with practical insights on Wall Street and its functions and operations. Written for professionals new to the industry, investors, job seekers, students, brokers and traders, and entrepreneurs and business executives, the book goes well beyond nice to know information. Instead, it will be, for many people, must have information about organizations, professions, and transactions that can help them make deals, get ahead in their careers, or better fund and build their businesses. Everybody has heard of Wall Street, but very few know anything about its institutions and processes. What is the buyside? Who works on the sellside? How do companies raise capital? Why do companies hire investment bankers? What is the difference between a mutual fund and a hedge fund? What is the process for selling a company? What does it take to go public and how is it done? The Wall Street Primer lifts the veil and answers these questions and many more. Besides covering financings and mergers and acquisitions, Pedersen illuminates the players involved. These include venture capitalists, private equity investors, public portfolio managers, activist shareholders, investment bankers, institutional salespeople and traders, and all those associated with their activities, like regulators, lawyers, and accountants. Along the way, readers learn about the offering and trading of stocks and bonds, what is involved in M&A transactions, how technology is affecting the brokerage industry, what concerns institutional investors, and much more. Best, it's written by an insider who has seen both Wall Street's public face and its backroom dealings. Author and former investment banker and securities attorney Jason Pedersen searched for years for a book he could recommend to clients and professionals that contained practical information on how the pieces all fit together—who the players are, what they do, how they interact, and how, why, and when deals get done. But he never found that book and so decided to write it himself. The result is a fascinating look at how people navigate Wall Street—and wake up to find themselves living the American Dream.