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Simple English definitions for legal terms
investment banking
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A quick definition of investment banking:
Investment banking is a type of business that helps companies sell stocks or bonds to investors. They also help companies find other companies to buy or merge with. Investment bankers give advice to companies about their finances. They work in a department that is usually not seen by the public. This department is called the investment banking department.
A more thorough explanation:
Investment banking refers to the business of selling or underwriting securities, such as stocks or bonds. This can include acting as a dealer, broker, or market maker. Investment bankers work with companies to help them raise money by selling securities to private investors, such as insurance companies. They also provide financial advice to client companies and help them find acquisition partners.
For example, if a company wants to raise money by selling stocks, they may work with an investment bank to underwrite and sell those stocks to private investors. The investment bank may also provide advice on how to structure the sale to maximize the company's profits.
Another example is if a company wants to acquire another company, they may work with an investment bank to find potential acquisition partners and negotiate the terms of the deal.
Overall, investment banking is a complex field that involves a range of services to help companies raise money and make strategic financial decisions.