You might not be familiar with investment banks, which are neither typical financial institutions nor investment companies. For instance, you don’t walk into one and ask for advice on high-yield investments from an investment broker. Instead, good investment banks support the global financial economy by helping companies bring shares to market and conduct high-level financial activities.
How Investment Banks Make Money
If you’ve ever owned a share of stock or a mutual fund, you’ve indirectly benefited from an investment bank. Small, boutique investment banks and large well-known ones assist private companies with becoming publicly traded corporations. The investment returns on your mutual funds are actually a result of an investment bank’s initial work with a company.
