Question

In: Finance

discuss the concept,structure,roles, functions, and products of investment banking bank

discuss the concept,structure,roles, functions, and products of investment banking bank

Solutions

Expert Solution

Investment banking- This is a wide branch of banking that provides several services to the high net worth clients and institutions.

Concept of Investment banking- Investment banking came in picture when there were many other financial needs of the customers apart from lending and depositing funds. Investment banking performs many other financial functions that we will see in the coming sections.

Roles and functions of Investment Banking- Are as following:

  1. It provides finance to big corporates.
  2. It handles public issues (IPOs) and takes care of the bid price, lot size and issue size of the IPO. It works as underwriter.
  3. It provides portfolio management and equity, currency trading facilities and platform.
  4. It provides research related to stock market and mutual funds to the high net worth individuals.
  5. It handles merger & acquisition process of corporate.
  6. It works as "Merchant Banker".

Products and services of Investment banking- Are as following:

  1. Underwriting
  2. Public issues
  3. Merger & Acquisition
  4. Advisory services
  5. Wealth & Portfolio management
  6. Foreign exchange services

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