What Is Investment Bank?

An investment bank is a financial institution that helps facilitate major financial transactions. It plays a crucial role in assisting startup companies with their initial public offerings (IPOs) and aiding corporations in merging with other companies. Additionally, it acts as a broker or financial advisor for big institutional clients like pension funds. So, what Is Investment Bank?

JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse, and Deutsche Bank are some of the global investment banks. These banks also provide community banking services and have divisions that serve the investment requirements of wealthy individuals.

Investment Bank Works?

An investment bank’s advisory division charges a fee for its services, while the trading division earns commissions based on market performance. Additionally, many have retail banking divisions that profit from lending money to consumers and businesses.

Professionals employed by investment banks can pursue careers as financial advisors, traders, or salespeople. While an investment banking career can be financially rewarding, it often entails working long hours and experiencing considerable stress.


Investment banks play a crucial role in the global financial system by facilitating capital raising, providing advisory services, and managing complex financial transactions. They act as intermediaries between issuers of securities and the investing public, helping companies and governments raise funds through the issuance of stocks and bonds. Additionally, investment banks offer strategic advice on mergers, acquisitions, and other corporate finance activities.