Investment Bank

Investment bank

Financial intermediaries who perform a variety of services, including underwriting and sale of securities, facilitating mergers and other corporate reorganizations, acting as brokers to both individual and institutional clients, and trading for their own accounts. See: Underwriters.

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Investment Bank

A financial institution that provides a variety of services for clients. Among the services of an investment bank are underwriting, facilitating transactions, assisting in mergers and acquisitions, and brokering. In general, an investment bank's clients are institutional investors, but high net-worth individuals also use them. The name can be misleading since investment banks rarely provide retail banking services.

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Investment bank. An investment bank is a financial institution that helps companies take new bond or stock issues to market, usually acting as the intermediary between the issuer and investors.

Investment banks may underwrite the securities by buying all the available shares at a set price and then reselling them to the public. Or the banks may act as agents for the issuer and take a commission on the securities they sell.

Investment banks are also responsible for preparing the company prospectus, which presents important data about the company to potential investors.

In addition, investment banks handle the sales of large blocks of previously issued securities, including sales to institutional investors, such as mutual fund companies.

Unlike a commercial bank or a savings and loan company, an investment bank doesn't usually provide retail banking services to individuals.

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Investment Bank (IB)

What Does Investment Bank (IB) Mean?

A financial intermediary that performs a variety of investment services, including underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations and also acting as a broker for institutional clients.

Investopedia explains Investment Bank (IB)

The role of an investment bank begins with preunderwriting counseling and continues after the distribution of securities in the form of advice.

Related Terms:
• Capital
• Initial Public Offering—IPO
• Private Equity
• Syndicate
• Underwriting