Investment Banking

Investment Banking is simply defined as the raising of capital for companies and advising them on financial alternatives.  Companies need capital to grow and expand their businesses.  Investment banks facilitate this process by selling securities to public investors through a variety of means.  The leading investment banks including Morgan Stanley, Merrill Lynch, and Goldman Sachs are said to be in the bulge bracket.  Other investment banks are regionally oriented or situated in the middle market (e.g. Lincoln International).  Others are small, specialized firms called boutiques which might be specialized in a certain sector and may focus in a specific area including bond-trading, M&A advisory, or private equity.