Investment Banking

Investment banks act as intermediaries between companies and the capital markets, providing a means for companies to raise debt, equity and acquire other companies. Investment bankers act as agents on behalf of companies (their clients) and connect them to buyers, sellers, and investors. To provide a simplified example, whenever General Motors needs to raise money or is acquiring a new company, it will enlist an investment bank for advisory and / or financing. The investment bank will recommend the most appropriate acquisition targets and financing options, and will facilitate the actual transaction. Investment banks will pitch their services to General Motors and the prospective target companies. The nature of these tasks makes investment banking a client-serving role.