What Is Investment Banking?

Investment banking is a term used for the various financial-related services, as well as other services concerning the creation of capital for other companies, governments and other entities. Investment banks focus on this specifically, dedicating their resources and staff to this area of banking entirely.

Investment Banks and Investment Bankers

An investment bank offers various different services regarding business finances. This can include financial advice, underwriting, raising of capital, insurance of shares and bonds and more. It’s common for businesses to employ the services of an investment bank when large amounts of funding are being moved around.

An investment banker is someone who carries out the same services of an investment bank, however they are not always employed by one. They work with clients such as businessmen and women, entrepreneurs and investors.

Investment banking is most often carried out by larger businesses and companies, who have the additional resources to put into an often risky area of financial development.