Investment bank is an investment bank is a financial institution that helps companies take new bond or stock issues to market, usually acting as the intermediary between the issuer and investors. Investment banks may underwrite the securities, for example, by buying all the available shares at a set price and then reselling them to the public. Or they may act as agents for the issuer and take a commission on the securities they sell. Investment banks are also responsible for preparing the company prospectus, which presents important data about the company to potential investors. In addition, investment banks handle the sales of large blocks of previously issued securities, including sales to institutional investors, such as mutual fund companies. Unlike a commercial bank or a savings and loan company, an investment bank doesn't provide retail banking services to individuals.
| APA | Barry Goldsmith. (2010). investment bank. Retrieved September 28, 2026, from http://smartdefine.org/investment_bank/definitions/1156492 |
| Chicago | Barry Goldsmith. 2010. "investment bank" http://smartdefine.org/investment_bank/definitions/1156492 (accessed September 28, 2026). |
| Harvard | Barry Goldsmith 2010, investment bank, Smart Define, viewed 28 September, 2026, <http://smartdefine.org/investment_bank/definitions/1156492>. |
| MLA | Barry Goldsmith. "investment bank" 21 October 2010. Web. 28 September 2026. <http://smartdefine.org/investment_bank/definitions/1156492> |