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
- Biglari: The Hunter Becomes the Hunted
- Could This New Billion-Dollar Industry Put Banks Out Of Business?
- 3 Reasons Bank of America Is Less Profitable Than Its Peers
- 3 Top Stocks for Fighting Climate Change
- 3 of the Best Short-term Investments
- Robert Half International Inc. Gives Solid Earnings. Why the Sell-Off?