Investment banks serve several important functions: (1) They act as advisors to companies on raising capital and provide financial analysis and advice on mergers and acquisitions. (2) They underwrite new stock and bond issues, ensuring the purchase and resale of securities at a fixed price. (3) They conduct research through financial analysts and sell reports to help managers make investment decisions.

1. 7 Main Functions of Investment Banking Firm
Investment banks are the intermediary organizations that serve
a variety of services such as handling of mergers and
acquisition, underwriting of new stock issues, and acts as a
financial advisor. They act as a middleman between issuer and
investor and helps clients raise capital through equity and debt
offering. Some of the investment banks are Goldman Sachs, JP
Morgan Chase, Morgan Stanley, Credit Suisse, etc.

3. Functions of investment banking firms are:
1. Advisor: An investment bank serves as an adviser to any
company and assists in the best possible way to raise capital,
including selling bonds and shares, if necessary. Financial
analysts analyse various factors, such as earning potential, before
selling their stocks or bonds to determine the value of the
company. Banks advise the company’s management on how
valuable the company is and how the organization is likely to
benefit from merger and acquisition.

4. 2. Underwriting stocks and bonds: If an individual
decides to raise capital through a sale of equity and bonds,
the shares will also be underwritten by one or more
investment banks. This ensures that the company
purchases or re-sells a certain number of shares – or
securities – at a fixed value via an auction.
3. Research: Bigger investment firms have analysts who
analyse business information and decide how they are
likely to benefit from selling or buying. Reports are sold to
managers of mutual funds and hedge funds for capital
generation.

5. 4. Trading and sales: Various firms have a department
for trading that can sell bonds or stocks as per the need of
their clients.
5. Asset Management: Companies such as Goldman
Sachs and JP Morgan use their asset management division
to handle pension funds, insurance companies and charity
accounts.
6. Wealth Management: Investment banks also provide
funding options for pension and other long-term needs of
individuals and families.

6. 7. Securitized Products: Enterprises also pool
financial assets these days – from loans to receivables
from credit cards – or market them as fixed-income
securities to shareholders. An investment bank will
propose sources of income to be "secured," arrange
the assets, and sell them to institutional investors.
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of-investment-banking.html