How does an investment bank make money?

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asked Mar 29, 2022 in Investing by Oweelsee (2,430 points)
How does an investment bank make money?

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answered Mar 30, 2022 by Wenja921 (26,070 points)
An investment bank makes money when they earn money on commissions and fees on underwriting new issues of securities via bond offerings or stock IPOs.

Investment banks also often serve as asset managers for their clients as well.

Investment banks are best known for their work as intermediaries between a corporation and the financial markets.

That is, they help corporations issue shares of stock in an IPO or an additional stock offering.

They also arrange debt financing for corporations by finding large-scale investors for corporate bonds.

Investment bankers make a lot of money because they sell companies for huge amounts of money while earning a generous commission and spending hardly anything in the process.

Investment banks help companies and governments raise capital by issuing stock or borrowing money.

They also act as advisers and go-betweens on mergers and acquisitions.

The capital markets are a fast-paced, high-stakes, and highly regulated environment.

4 of the biggest investment banks are.

JPMorgan Chase. Goldman Sachs. BofA Securities. Morgan Stanley.

Global investment banks include JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse, and Deutsche Bank.

Many of these names also offer storefront community banking and have divisions that cater to the investment needs of high-net-worth individuals.
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answered Mar 24, 2023 by Hilarysmith (1,520 points)
There are a lot of ways to invest in stocks. The Investing Stock Research Tool https://numfin.com/ is a tool to help you understand the market and make decisions about your stocks. This stock analysis tool helps you explore what went into a company's valuation.

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