Investment banking is a specialist sector of finance that helps people, organizations, and governments generate funds and handle financial transactions. Even if you’re not looking to become a banking investor, many of the strategies that these financial professionals use can definitely be helpful to know.
In this field, investment banks typically facilitate Initial Public Offerings (IPOs), which are the first sale of a company’s shares to the public. They also deal with bonds, which are effectively loans that firms or governments issue to obtain capital, with investors receiving periodic interest payments and the ultimate recovery of the principle amount.
Banks and Trading
Investment banks participate in trading, where they purchase and sell securities, such as stocks and bonds, on behalf of their clients, gaining profits from the differential in purchasing and selling prices.
Overall, investment banking plays a significant role in helping the growth and development of enterprises and economies throughout the world.
It’s hard to even scratch the surface about the subject in an article like this – so we’ve included a link to Udemy’s highest rated Banking Investment course below.
