What Does An Investment Bank Do?
An investment bank gains specialization in handling all types of financial transactions for the benefits of the corporate clients. It acts in the role of a mediator between the financial investors and the companies issuing securities for sale in the market. It takes care of both the parties and also underwrites for ensuring the financial security of the clients. The roles played by investment banking in India are highly beneficial for every large and small corporate house in commercial world.
Various roles played by the investment banks
Financial intermediates – The investment banks help their corporate clients in issuing fresh shares of stocks in the market, which are offered to the public. These bankers also aid in getting suitable financers for these corporate companies, in the form of the buyers of their marketed stock shares. The investment bank is supposed to check the financial condition of the client and issue a prospectus accordingly, for explaining the financial benefits to be offered in the upcoming shares or the securities of that company, for convincing the potential investors.
In mergers or acquisitions – When a company is going to be merged or acquired by another company, the investment banking firms can be of great use. They evaluate the present conditions of the company to be merged or acquired, as well as the chances of benefits for their clients, prior proceeding with the legal matters for merging or acquisition. These experienced firms also shape up the entire acquisition procedure to complete it smoothly for both the parties.
Financial guidance – An investment banker acts almost the same as a financial advisor, for giving useful financial advices to the corporate clients. The investment bank acts as the financial partner of a corporate company, who provides the best advices after scrutinizing the financial needs of the client and the current scenario of the financial market around the world. The wonderful insights of these banking firms offer both short-term and long-term benefits to their corporate clients.
Topmost investment banks of the world
Barclays Investment Bank, Deutsche Bank, JP Morgan, Rothschild, Morgan Stanley, Goldman Sachs, Bank of America Merrill Lynch, Citibank, UBS, Credit Suisse, HSBC, RBC Capital Markets, BNP Paribas, BMO Capital Markets and Lazard are the most famous investment banks that are widely known across the world for providing the best investment banking services to the corporate clients worldwide.
Hence, the money spent on hiring the services of an investment bank is always worth its cost for a corporate company.