Investment banking is a division of banking related to the creation of capital through the sale of stocks and bonds to help companies to raise capital.
Operating as a bridge between large enterprises and the investors, investment banks advise businesses and governments on how to meet their financial challenges and the best way to raise funds, be it from stock offerings, bond issues or derivative products.
In addition, investment banks also help with the pricing of financial instruments so as to maximize revenue, navigating regulatory requirements as well as underwriting new debt and equity securities for all types of corporations, aiding in the sale of securities, and helping to facilitate mergers and acquisitions, reorganization and broker trades for both institutions and private investors.
While advising companies and helping them raise funds is an important part of investment banks’ role, investment banks are highly diversified and offer a host of financial services including: