What Is An Investment Bank? What Does He Do? Why Would A Company?

1268 Words Oct 2nd, 2016 6 Pages
What is an Investment Bank? What does he do? Why would a company use one?
An investment bank is a financial company that assists well-to-do individuals, corporations, and governments in raising funds by underwriting or acting as an agent in issuing securities. An investment bank may also assist companies with mergers and acquisitions that may provide support services in trading of various securities. There are significate procedures put in place to help investment bankers regulate businesses practices like registration, loan syndication to raise large amounts of capital, and market making for profits.
Registration, Under the Securities Act of 1933 was put in place to ensure investor received significant information about securities being offered up for public sale and to prohibit dishonesty and fraud for the sale of securities. The SEC achieves these goals mainly by requesting companies reveal vital financial details through the registration of securities. The information that an investment banker provides allows investors to make well informed decisions about whether to obtain a company 's securities or not. In the U.S. all securities offered must be registered with the SEC or qualify for an exemption from registration requirements. Investment bankers provide a registration form that is filed with SEC provides important facts like the description of a companies property and business, also a report of securities offered for sale and a financial statement. Registration…

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