Division of banking encompassing business entities dealing 
with creation of capital for other companies. In addition 
to acting as agents or underwriters for companies in the 
process of issuing securities, investment banks also advise 
companies on matters related to the issue and placement of 
stock

Investment banks offer security to both corporations 
issuing securities and investors buying securities. For 
corporations investment bankers offer information on when 
and how to place their securities in the market. The 
corporations do not have to spend on resources with which 
it is not equipped. To the investor, the responsible 
investment banker offers protection against unsafe 
securities. The offering of a few bad issues can cause 
serious loss to its reputation, and hence loss of business. 
Therefore, investment bankers play a very important role in 
issuing new security offerings