Difference between revisions of "Investment bank"
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Well-known investment banks include Goldman Sachs, Merrill Lynch and Citigroup. Other well-known brokerage firms include Moelis & Company, Lazard and Deutsche Bank. Investment banks are different from commercial banks in the fact that investment banks don't accept deposits, although some banks such as Citigroup ''do'' provide commercial banking services to both individuals and small businesses. | Well-known investment banks include Goldman Sachs, Merrill Lynch and Citigroup. Other well-known brokerage firms include Moelis & Company, Lazard and Deutsche Bank. Investment banks are different from commercial banks in the fact that investment banks don't accept deposits, although some banks such as Citigroup ''do'' provide commercial banking services to both individuals and small businesses. | ||
| − | There are two mainline businesses for investment banks. The trading and sale of securities (debt or equity) for cash & their promotion (underwriting, roadshows, launching IPOs & equity research) is known as the "sell side" while prospecting for buyers who want advisory on investment services such as M&A is known as the "buy side." Typical buy-side clients include private equity firms, hedge funds, mutual funds, insurance companies and pension funds; typical sell-side clients include companies wanting to sell securities or merge with another company. | + | There are two mainline businesses for investment banks. The trading and sale of securities (debt or equity) for cash & their promotion (underwriting, roadshows, launching IPOs & equity research) is known as the "sell side" while prospecting for buyers who want advisory on investment services such as M&A is known as the "buy side." Typical buy-side clients include private equity firms, hedge funds, mutual funds, insurance companies and pension funds; typical sell-side clients include companies wanting to sell securities, issue debt or merge with another company. |
All investment banks (regardless of size) and stockbrokers (registered representatives) must be licensed with Financial Industry Regulatory Authority (FINRA) & the Securities and Exchange Commission in order to provide brokerage, wealth management and financial advisory services. FINRA is the regulator for all investment banks and registered securities representatives; it is a self-regulatory organization, not a government agency unlike the [[SEC]]. | All investment banks (regardless of size) and stockbrokers (registered representatives) must be licensed with Financial Industry Regulatory Authority (FINRA) & the Securities and Exchange Commission in order to provide brokerage, wealth management and financial advisory services. FINRA is the regulator for all investment banks and registered securities representatives; it is a self-regulatory organization, not a government agency unlike the [[SEC]]. | ||
[[Category:Finance]] | [[Category:Finance]] | ||
Revision as of 23:55, June 6, 2013
An Investment bank is a financial institution that facilitates mergers & acquisitions activity between companies and trades equity, derivative & debt securities. Typical securities traded include bonds, shares/stock and futures. Some investment banks also provide financial planning and wealth management services to both individual and institutional clients.
Well-known investment banks include Goldman Sachs, Merrill Lynch and Citigroup. Other well-known brokerage firms include Moelis & Company, Lazard and Deutsche Bank. Investment banks are different from commercial banks in the fact that investment banks don't accept deposits, although some banks such as Citigroup do provide commercial banking services to both individuals and small businesses.
There are two mainline businesses for investment banks. The trading and sale of securities (debt or equity) for cash & their promotion (underwriting, roadshows, launching IPOs & equity research) is known as the "sell side" while prospecting for buyers who want advisory on investment services such as M&A is known as the "buy side." Typical buy-side clients include private equity firms, hedge funds, mutual funds, insurance companies and pension funds; typical sell-side clients include companies wanting to sell securities, issue debt or merge with another company.
All investment banks (regardless of size) and stockbrokers (registered representatives) must be licensed with Financial Industry Regulatory Authority (FINRA) & the Securities and Exchange Commission in order to provide brokerage, wealth management and financial advisory services. FINRA is the regulator for all investment banks and registered securities representatives; it is a self-regulatory organization, not a government agency unlike the SEC.