What is investment banking?

Investment banks are a type of bank that engages in financial transactions on behalf of individuals, corporations, and governments. They also assist in raising financial capital by underwriting or acting as the client’s agent in the issuance of securities. They also help in merging companies or acquisitions of companies. Other services provided by these investment banks are market making, trading of derivatives, equity securities, and FICC services. But unlike the commercial or retail banks, these investment banks do not take deposits.