Functions

Underwriting New Stock Issues

• Investment banks act as intermediaries between companies and investors through initial public offerings (IPOs).
• Companies hire investment banks to offer IPOs. Investment banks will "set everything and list IPO in a stock exchange".

Merger and Acquisitions

• Investment banks help companies to purchase/join other companies. They might represent the seller or the buyer in the M&A transaction.
• The banks provide funds and also issue new securities to the market.

Risk Management

• Investment banks help organizations to manage financial risks. The banks highlight the risks and how they can be handled.
• These risks include "business risk, investment risk, legal & compliance risk, and operational risk".

Research

• The aim of investment bank research is to give a rating of the business and enable investors to make an investment decision.
• Types of research include "equity research, fixed income research, macroeconomic research", and qualitative research.

Structuring of Derivatives

• Investment banks prepare derivatives in order to attract investors. The derivatives may be based on single or multiple securities.

Merchant Banking

• Investment banks may provide consultancy services to companies.
• This may include raising funds, project management, leasing services, money market operations, portfolio management, and broker in stock exchange.

Investment Management

• Investment banks guide investors in purchasing and managing their portfolio.
• They also prepare reports based on performance and use the reports to make decisions on financial securities.