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| *Ostroff, Fair and Company>>>Financial Services |
What is investment banking? |
What is investment banking? I think Fred is a little off here. I work for a bank holding company and can shed a little light on your question. What Fred is talking about is just a commercial banker, a banker that lends money or other services to commercial clients. An investment banker is an underwriting or agent "that serves as intermediary between an issuer of securities and the investing public." Basically, they take, lets say mortgages that have been sold to the secondary market, package them up, and re-sell them to the market. Many of the Wall Street banks are investment banks. Hope this helps. Put it this way. If you just want to buy a car, you do banking to borrow money from a bank. But if you want to start a business selling cars, where are you going to get the money? From an investment banker. The investment is you. The banker is the bank that invests in you. Read "Liar's Poker" by Michael Lewis for more information. It's a fun read. Fred is wrong, and Rebel only describes one part. Investment banking is basically financial advise for either extremely rich people ($10 mil+) or corporations. They advise them on the purchasing/selling of stock to raise captial, mergers/acquisitions of other companies, and deciding if projects are worth financing. Future investment banker |
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