Investment bank

Investment bank – An individual or institution which acts as an underwriter or agent for corporations and municipalities issuing securities. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements, and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from or provide loans to individuals. The two main lines of business in investment banking are (1) trading securities for cash or for other securities (i.e., facilitating transactions, market-making) or the promotion of securities (i.e., underwriting, research, etc.), known as the “sell side”; and (2) dealing with pension funds, mutual funds, hedge funds and the investing public (i.e., consumers of the products and services of the sell-side), known as the “buy side”.