2006-06-19 23:50:46 · 2 answers · asked by Ghouse M 1 in Business & Finance ➔ Investing
When people talk about investment banking, they usually are talking about one of the following functions of a large brokerage firm:
1. The group that raises cash for firme, helping them to issue new bonds or equity.
2. The group that deals with merger and acquisitions activity.
3. A group that structures new securities, like asset-backed securities.
I-Banks usually have trading units and research groups as well.
2006-06-20 00:37:24 · answer #1 · answered by Ranto 7 · 1⤊ 0⤋
It's the banking services that companies use to sell off their future cash flows so that they can have money now. They can sell these cash flows in the form of highly structured debt (meaning that there is a defined repayment period, interest rate, etc.) or they can sell the future cash flows as equity on which the payback is based on the residual cash flow a company has left over after paying on the bills, including debt.
2006-06-20 11:54:50 · answer #2 · answered by ZepOne 4 · 0⤊ 0⤋