1. Investment Banking and Services offered by banks

Investment Banking Definition

An Investment banking is a bank who provide consulting services to governments, organisations, individuals, corporate for raising capital investment, mergers and acquisitions, trading into equities, currencies, derivatives, commodities, fixed income instrument, etc. For corporations, investment banks plays important role by offering advisory services on when and how to launch securities into open market. Apart from consulting services most of the Investment banks also act as an agent for almost all the services.

Most important difference between commercial banks or retail banks with investment banks is that, Investment bank does not take participates in accumulating deposits from their clients. Investment banks also participate in other services like cash management, professional management services for securities, custody services, and banks also offer capital exchange for equities shares and many more.

Mostly Investment banking financial institutions deals in two categories know as sell category and buy category. Under sell category, Investment bank participates in trading activities for securities, currencies, derivatives or promotes research, underwritings. The buy category of investment bank provide consulting or advisory services to government or institutions related to buying investments, mutual funds, equities, hedge funds, unit trusts, life insurance, etc.

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