Investment banking is a financial service industry that primarily focuses on providing financial advice, capital raising, and transactional services to corporations, governments, and other entities. Investment banks act as intermediaries between issuers of securities and investors who are interested in purchasing those securities.

Here are some key aspects and services provided by investment banks:

Capital Markets: Investment banks assist companies in raising capital by issuing securities such as stocks, bonds, and derivatives. They help in determining the appropriate pricing, structuring the offering, and finding potential investors.

Mergers and Acquisitions (M&A): Investment banks play a crucial role in advising companies on mergers, acquisitions, and divestitures. They provide strategic advice, valuation analysis, negotiate deals, and facilitate the entire transaction process.

Underwriting: Investment banks often act as underwriters in the issuance of securities. They assume the risk of buying the securities from the issuer and then sell them to investors at a higher price, thereby facilitating the issuance and distribution process.

Corporate Finance: Investment banks offer a range of corporate finance services, including financial restructuring, initial public offerings (IPOs), debt financing, and equity financing. They help companies optimize their capital structure and raise funds for various purposes.

Sales and Trading: Investment banks engage in sales and trading activities, facilitating the buying and selling of financial instruments such as stocks, bonds, commodities, currencies, and derivatives. They provide liquidity, execute trades, and offer market-making services to clients.

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