Definition of Investment Banking

sunandaC

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Definition of Investment Banking


“An individual or institution which acts as an underwriter or agent for corporations and municipalities issuing securities, most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors”.


“Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals, are also called investment banker”.


“Division of banking encompassing business entities dealing with creation of capital for other companies. In addition to acting as agents or underwriters for companies in the process of issuing securities, investment banks also advise companies on matters related to the issue and placement of stock”.



In short, we can say that Investment banks are the intermediaries in financial transactions which assist the company in raising capital (both equity and debt) as well as in providing strategic advisory services. They are experienced in carrying out projects that, for most companies, take place very rarely, but are critically important.
 
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