Investment banking is different from commercial banking in a sense that their main customers are public and private corporations. Using this banking system, you can generate substantial wealth through prudent investment of your available resources. If you are running a company or a public corporation, you can also use investment banking to help with the various business transactions that you might be engaged in.
Objectives And Functions Of Investment Banking
- The primary objective of this banking system is to help public and private corporations raise funds in the capital market.
- The Investment banks also provide strategic advisory services to public and private corporations in a wide array of financial transactions, including mergers, acquisitions etc.
- Apart from the above two main functions, investment banking performs various other functions as well. For example, the investment banks offer brokerage services to public and institutional investors.
- They also act as a financial adviser for their various corporate clients. Security issues is one of the major area, where the corporate bodies find the financial advises of Investment banking very valuable.
- Corporate bodies also seek advice from investment banks in various merger and acquisition deals.
- Investment banks are also considered as experts to perform various financial security researches for individual investors and corporate clients.
- Recently, investment banks have also jumped into private banking.
- Foreign currency exchange and bridge financing also comes under their work profile.
How Investment Banking Helps Public And Private Corporations To Raise Funds
There are two ways that are used by the investment banks to help companies and corporations raise funds in the capital market. The investment banks can either raise funds through the capital market or through private placements. When it comes to raising funds in the capital market, the investment banking companies, have two options to go for. The banks can either raise funds by selling the equities of the company in the stock market in an initial public offering (IPO) or secondary offering. Another alternative is to offer financial advises to the companies in order to help them with various debt-related issues.
Overall, investment banking has emerged as a great helping hand for companies and corporations. The investment banks have the capability to help your business grow in a way that will ultimately give you a winning edge over your competitions.
C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer founded in 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
Since our founding in 1972, CL King has evolved from an equity boutique to a full-service investment bank. Our focus on debt and equity capital markets remains the core of our robust platform supported by a well-respected research, sales, trading and clearing operation.
To learn more about how C.L. King & Associates ’s capabilities align with your long-term goals, please contact us at 212.364.1830
Or visit us here: http://www.clking.com/