INVESTMENT BANKING

MEANING –FUNCTION –NATURE-SCOPE

• Investment banking is a specific division of banking related to the creation
of capital for other companies, governments and other entities. Investment
banks underwrite new debt and equity securities for all types
of corporations, aid in the sale of securities, and help to facilitate mergers
and acquisitions, reorganizations and broker trades for both institutions
and private investors.
• Investment banks help companies and governments and their
agencies to raise money by issuing and selling securities in the
primary market.
• They assist public and private corporations in raising funds in the
capital market (both equity and debt)
• As well as in providing strategic acquisitions and othe rtypes of
financial transactions.
Principal businesses of investment banks
• Arranging finances for corporations and governments
Debt
Equity
Convertibles