What are investment banks, roles and characteristics?
Understand the Problem
The question is asking for an explanation of what investment banks are, including their roles in the financial sector and key characteristics that define them.
Answer
Investment banks are financial intermediaries that advise businesses and governments on finance strategies and help raise funds.
Investment banks serve as intermediaries between large enterprises and investors. They advise businesses and governments on financial strategies, help them to raise funds through stock or bond issues, and manage mergers and acquisitions.
Answer for screen readers
Investment banks serve as intermediaries between large enterprises and investors. They advise businesses and governments on financial strategies, help them to raise funds through stock or bond issues, and manage mergers and acquisitions.
More Information
Investment banks play a critical role in facilitating large-scale financial transactions and financial market efficiency. They enable growth and development by connecting those with capital to those who need it.
Tips
A common mistake is confusing investment banks with commercial banks; the former deal with large-scale financial transactions, instead of typical banking operations like savings accounts or loans.
Sources
- What are the functions of investment banks? - Investopedia - investopedia.com
- The Roles of Investment Banks - Investopedia - investopedia.com
- What Do Investment Banks Do? - Chief Executive - chiefexecutive.net
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