Question

Describe core functions of investment banking and give details about them in terms of fund based and non-fund based activities.

Answer 1

Core functions of investment banking are as follows-

A. investment bankers are performing the role of the underwriter at the times of initial public offering for various companies.

B. Mergers and acquisitions are also done between various companies through investment bankers

C. investment bankers are also playing an important role in equity research analysis and risk management of various investors

D investment bankers are also playing an important role in structuring of the derivatives.

E. Another core function of investment banker is merchant banking in which it will be trying to raise finance for a client or it will be trying to do broking on a stock exchange and project management.

F. investment bankers are also enhancing into investment management and it will be trying to prepare report which are based upon the performance of the company and it is based upon the risk appetite and the investment amount and time period of these clients

various fund based financial services which are provided by investment bankers will be involving credit which are offered by these investment bankers to various clients and they are also entering to various kinds of cash transactions.

they are mostly engaged into non fund based financial services which are involving various types of of underwriting and equity analysis which are mostly credit transactions.