An investment bank is a financial institution that specializes in raising capital and providing advisory services to corporations, governments, and institutional investors. Unlike commercial banks, which take deposits and make consumer loans, investment banks focus on activities such as underwriting stock and bond offerings, facilitating mergers and acquisitions (M&A), issuing securities, and providing market-making and trading services.
In short, investment banks act as intermediaries between entities that need capital and the investors who provide it.
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