Investment banks work with companies needing capital, usually the CFO, to work out the best method to obtain needed financing. Usually the company has the ability to issue stock, preferred stock, bonds, debentures, or a variety of debt instruments. The investment bank knows the markets and looks for the most cost effective source of financing that meets the company's requirements. They price the issue, decide what features are needed to make it profitable, estimate what bond rating it will likely succeed, and then shepard the deal through meeting legal requirements and finally issuing and distribution.
Compare: Commercial bank
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- 4 Reasons Why Millennials May Be Worse Off Than Baby Boomers Come Retirement
- The Surprising State That Could Become the 24th to Legalize Medical Marijuana
- 3 Bank Stocks All Retirees Should Consider Owning
- The Dirty Word Crushing Big Dividend Stocks
- Gold Falls to a 6-Year Low, but Could Fall Another 25%
- Where Will J.C. Penney Company Inc Be in 10 Years?