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Question 14.1: What services are provided by investment banks (IBs)? Who ar...

What services are provided by investment banks (IBs)? Who are their principal clients?

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The primary role of investment bankers is to serve as financial advisers to corporations, governments, and other large institutions. Investment bank help underwrite a number of securities for corporations including common and preferred stock, corporate bonds, government and federal agency securities and others. In addition, they can provide a number of services including advising clients regarding acquisitions and mergers, creating and trading in derivatives, brokering loan sales, setting up special purpose entities, stock and bond trading, currency and commodity trading, issuing credit and liquidity enhancements and developing business plans so companies can expand into new markets.

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