What does an investment bank do?

Investment banking activities include underwriting new debt and equity securities for all types of corporations. Investment banks will also facilitate mergers and acquisitions, reorganizations, and broker trades for institutions and private investors. Investment bankers work with corporations, governments, and other groups.

How do investment banks help the capital markets?

Investment banks help the capital markets function efficiently. Investment banking is a business that facilitates capital markets and the larger financial community. Investment bankers connect investors to companies that are raising money by issuing stocks and bonds.

What is the difference between investment banks and retail banks?

In a nutshell, retail banking institutions serve the everyday banking needs of people, and commercial banks serve corporate entities. Meanwhile, investment banks offer a range of financial services to pension funds, private equity funds, hedge funds, government, corporations, and other financial institutions.