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Functions and Operations of Investment Banks

Need to examine the functions & operations of investment banks in the U.S. economy and discuss two financial services provided by investment banks. Identify two types of securities that investment bank syndicates sell high, globally. Is it beneficial to search for the best available investment bank or should a firm stay loyal to a given investment bank? Can the U.S. government reduce its regulatory constraints on investment banks in a way that would help firms and the economy? Explain.

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Functions & Operations of Investment Banks

In the US, investment banks perform several functions and operations for the growth of the economy. For instance, the US investment banks like Bank of America (BOA) help the businesses to raise capital for their operations by selling investment securities to the general public. This is the primary function of BOA for the economic growth of US (Stowell, 2010). In addition, the US investment banks create securities, including stocks, bonds and derivatives such as call and put options for themselves and other companies, and facilitate the trade in them. They also help companies manage mergers and acquisitions operations (Matson & Hardy, 2004).

Apart from this, the US investment banks provide financial resources, consultancy and financial infrastructure to the business organization. For example, the investment banks in the US raise reliable capital for the client through underwriting and sale of securities such as stocks, bonds and loans. There are several other loans, credits and borrowings, which are facilitated by the investment banks in the US economy (Stowell, 2010). Additionally, the US investment bank helps ...

Solution Summary

The expert examines the functions and operations of investment banks. The beneficial best available investments are determined. Functions and operations of investment banks are determined.

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