Investment Banking

Business, Legal & Accounting Glossary

Definition: Investment Banking


Investment Banking

Quick Summary of Investment Banking


Investment Banking is a division of the bank that provides a series of services for business clients. A small portion of these services include underwriting, working on mergers and acquisitions, creating new bond and stock issues to the market, brokering deals, and acting as a middleman between issuers and investors. Most often, investment bankers deal with institutional investors. Often investment banks work as a syndicate on new security products as well.




Full Definition of Investment Banking


Division of banking encompassing business entities dealing with the creation of capital for other companies.

In addition to acting as agents or underwriters for companies in the process of issuing securities, investment banks also advise companies on matters related to the issue and placement of stock.


Examples of Investment Banking in a sentence


During the 2008 financial crisis, unstable loans were taken out through investment banking that could not be traced back to the origin.

When my business could no longer support its own growth from our stock growth, we turned to investment banking to make sure we were getting the best use from our investments.

The investment banking arm of the multinational bank is responsible for underwriting new securities for existing company’s as well as the IPOs of newly public startups.


Related Phrases


selling group
investment banking group
Banking Act of 1933
flotation cost
pay to play
Harvard MBA Indicator
syndicate
banking syndicate
Investment Bankers Association


Cite Term


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Modern Language Association (MLA):
Investment Banking. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/investment-banking/.
Chicago Manual of Style (CMS):
Investment Banking. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/investment-banking/ (accessed: April 19, 2024).
American Psychological Association (APA):
Investment Banking. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/investment-banking/

Definition Sources


Definitions for Investment Banking are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th November, 2021 | 0 Views.