Meaning of Investment Banking
Investment banking is a specific division of a bank or financial institution that provides funds to governments, corporations, and institutions. it helps to facilitate mergers and acquisitions. Investment banking act as intermediaries between investors and corporations. Some of the investment banks are JP Morgan Chase, Goldman Sachs, Credit Suisse, Morgan Stanley, etc.
Functions of Investment Banking
Helps to Issue IPO
Investment banks help to issues IPO to the company. it acts as a broker between investors and issuing company. Company hire an investment bank. Investment bank works on financial detail of IPO in the underwriting agreement.
Merger and Acquisitions
The main role of the investment bank is to selling or buying of new securities. Investment bank builds the strategy for M&A for both of companies. It helps a company in raising funds for M&A.
Research helps to provide rating to the companies, that helps the investors to take the right decision for their investment. Research reports shows what is the right time to sell or buy.
Provide Asset Management
Investment banks only do not provide market information but they also provide assets management to the companies. they provide portfolio management, Leasing service and etc.