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Definition

Investment Bank

An investment bank is an institution that acts as an underwriter or agent for a firm issuing securities. The investment bank acts as the firm’s advocate and adviser and walks it through the process of going public. The most important issues the firm and its investment bank must agree on are the amount of capital needed by the firm, the type of stock to be issued, the price of the stock when it goes public, and the cost to the firm to issue the securities.

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