The-definition.com

Definition

Investment Banking

A specific division of banking related to the finance of capital for other companies, governments and other entities is known as investment banking.

Investment banks do varied services like granting short and long term loans, subscribing to shares and debentures, drawing and accepting bills etc.The banks not only finance but also help the promotion of new companies.The banks also provide working capital and capital for expantion and modernization, and provide guidance to issuers regarding the issue and placement of stock.

Share it:  Cite

More from this Section

  • Liquidity Risk
    Liquidity means the ability of a firm to honor its financial obligations. Therefore the ...
  • Synergy
    ...
  • Putable Swap
    A putable swap provides the party making the floating rate payments with right to terminate ...
  • Undervaluation
    When a firm’s securities sell for less than their intrinsic, or potential, or long-run ...
  • Loss frequency
    Loss frequency means the probable number of losses that may occur during some given time ...