Investment banking is a specialized sector of banking that assists individuals, corporations, and governments in raising capital by underwriting and issuing securities. It also provides advisory services for mergers and acquisitions (M&A), restructurings, and other financial transactions.

Characteristics
– Capital Raising: Investment banks help clients raise funds through the issuance of stocks and bonds.
– Advisory Services: They provide strategic advice on mergers, acquisitions, and other financial transactions.
– Market Making: Investment banks facilitate the buying and selling of securities, providing liquidity to the markets.
– Research: They conduct in-depth market research and analysis to inform clients and investors about investment opportunities.

Examples
– Underwriting: An investment bank may underwrite an initial public offering (IPO) for a tech startup, helping it to go public and raise capital.
– M&A Advisory: An investment bank could advise a large corporation on acquiring a smaller competitor, helping to negotiate terms and structure the deal.
– Debt Issuance: A government may work with an investment bank to issue municipal bonds to fund infrastructure projects, allowing it to raise necessary capital.