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
- What the Chinese Stock Market Crash Can Teach You
- Better Cloud Stock: Microsoft Corporation or International Business Machines Corp.?
- The 3 Worst Money Habits of Millennials
- You'll Never Guess What's Eating Away at Your Retirement Savings
- This Retail Trick Might Have Claimed Another Victim
- How to Buy Bank Stocks Like a Boss