Professional Documents
Culture Documents
AE 18 Report
AE 18 Report
investment, and capital markets. While the terms are sometimes used interchangeably.
Mergers and Acquisitions Investment banks advise Wealth Management: Some investment houses
(M&A): companies on buying or focus on providing
selling other companies. comprehensive financial
They assist in negotiations, services to high-net-worth
valuation, and structuring individuals, including
deals. investment advice, estate
planning, and financial
planning.
Trading and Sales Investment banks engage in Mutual Funds and Investment houses may
buying and selling financial Hedge Funds operate or sponsor mutual
instruments on behalf of funds and hedge funds,
clients and for their own pooling money from
accounts. multiple investors to invest
in a diversified portfolio of
assets.
Research: Investment banks often Private Equity: Some investment houses
conduct financial research, engage in private equity
analyzing markets, activities, investing in
industries, and specific private companies and
securities. This research is providing capital to support
used to provide insights to their growth.
clients and support trading
decisions.
Investment banking
- It is a specific branch of banking that helps businesses raise funds and provides them with financial advice and
support.
- It provides substantial financial advising, capital raising, government and financial institution services, financial
and risk management services, and help to enterprises.
- An investment bank is a type of financial services firm that serves as a middleman in large and sophisticated
financial transactions.
- When a new firm is ready to launch its initial public offering (IPO) or when a company combines with a rival, an
investment bank is approached.
- For large institutional clients like pension funds, it also serves as a broker or financial advisor.
Investment bank Do
- Example: Company ABC wants to merge with another company. How will it know that the other company will
benefit from it? Or how is it going to raise the desired funds? And who is going to handle the complete
documentation and help in figuring out new investment plans?
- Well, the short answer to all these questions is an investment bank.
- Investment banks play a vital role in in making a company go big by acting as a risk taker or say, middleman.
- Investment banking focuses on two main areas:
1. M&A (Merger and Acquisition) Advisory – it is the process of assisting corporations and institutions in the
location, evaluating and completing company acquisitions.
2. Underwriting – is a procedure used by banks to get funds from investors for a client mostly in the form of
equity or debt securities.