Explanation :
Investment banking is a separate section of banking that deals with capital creation for institutional investors, including large corporations and governments. Large investment banks such as Citigroup, Goldman Sachs or Morgan Stanley, to name a few, offer a wide range of financial services pertaining to mergers and acquisitions, debt restructuring, proprietary trading, leveraged finance, and so on. In addition, investment banks maintain a large share of the underwriting of initial public offerings (IPOs) and new debt as well as in the placement of new stocks.
In a nutshell :
- Investment banking deals primarily with the creation of capital for other companies, governments, and other entities.
- Investment banking activities include underwriting new debt and equity securities for all types of corporations, aiding in the sale of securities, and helping to facilitate mergers and acquisitions, reorganizations, and broker trades for both institutions and private investors.
- Investment bankers help corporations, governments, and other groups plan and manage the financial aspects of large projects