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.