Investment Banking Firms Who are they and What do they do

An investment banking firm is a financial institution that offers a range of services including raising capital for corporations and governments, providing advice on mergers and acquisitions, offering strategic financial guidance, and engaging in trading securities. These firms play a pivotal role in the global financial markets by facilitating corporate transactions and capital formation while also generating profits through various financial activities.

Primary Function of Investment Banking Firm:
Trading: Investment banking firms engage in trading various financial instruments such as stocks, bonds, currencies, and derivatives. They buy and sell these securities on behalf of clients or for their accounts to generate profits. Trading activities may include market making, proprietary trading, and facilitating transactions for institutional investors.

Mergers and Acquisitions (M&A): Investment banks advise companies on mergers, acquisitions, divestitures, and other corporate restructuring activities. They assist in the negotiation process, perform valuation analysis, conduct due diligence, and help structure the deal to maximize value for their clients. Investment bankers also provide strategic advice on the financial and operational aspects of M&A transactions.