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Investment Bank


An investment bank is an institution that performs a variety of financial services for corporations, individuals, and the government. The primary function of an investment bank is to raise capital for growing companies and the government by issuing equity and debt securities. In essence, the role of an investment bank is to operate as an agent between companies in need of funding and the public markets. The chief difference between an investment bank and retail bank is that an investment bank does not accept deposits or originate loans. An investment bank also offers advisory and strategic services related to mergers, acquisitions, and corporate restructuring. Today, a typical investment bank may offer risk management and broker dealer services as well. An investment bank is also known as an underwriter.

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