What is an investment bank? An investment bank is a credit institution that specializes in stock trading. Investment banks are different from commercial banks because they offer a unique set of services in addition to basic banking. For example.
- an investment bank can act as a broker – it brokers transactions in securities, raw materials, currencies and derivatives trading.
it also analyzes all the markets in which it trades
it provides advisory services in the purchase and sale of businesses and securities
It conducts market research and provides underwriting services
It provides capital inflows in the financial markets for large corporations and government needs.
Investment banking also allows you to establish savings and checking accounts, conduct currency exchange operations, and even gives you an opportunity to establish business credit.
The many functions of an investment bank can be divided into four main categories.
- Analyzing (selecting investment targets)
Consulting (assisting in the formation of investment strategies)
Expertise (supporting all investment transactions and constructing portfolios)
Organization (to carry out settlements and conduct financial transactions) Trader (stock placement) Trader (stock placement).
Investment banks are classified based on their size. And “size” here includes several factors: average transaction volume, the number of offices an investment bank has, and the number of employees. Based on this characteristic, there are four types of investment banks: regional boutique banks, elite boutique banks, middle market banks, and large investment banks. And each of these banks has its own range of services to meet the needs of individual clients and large corporations.