Understanding Investment Banking Activities: Key Roles and Functions
Investment banking plays a vital role in the financial markets , offering crucial services to companies, governments, and investors. The activities of investment banks encompass a range of financial services designed to facilitate capital raising, mergers and acquisitions, and investment management. These services are designed to help businesses achieve strategic goals and maximize their economic potential. Capital Raising and Underwriting One of the primary functions of investment banks is capital raising. Companies and governments often require significant funds for expansion, projects, or debt refinancing. Investment banks assist by helping them raise capital through the issuance of stocks, bonds, or other financial instruments. This process is known as underwriting. In underwriting, the investment bank helps price and sell these securities to investors, ensuring that the offering is successful. The investment bank assumes the risk of underwriting by agreeing to purchase the entire ...