Investment Banker Law and Legal Definition
An investment banker is a stock broker who underwrites securities. An investment banker is the underwriter that helps a corporation issue its new securities to the public. It is a person employed by a financial institution that is in the business of raising capital for corporations and municipalities.
Investment banks help companies and governments issue securities, help investors purchase securities, manage financial assets, trade securities and provide financial advice. Investment banks also have a large role in facilitating mergers and placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals. There are several divisions in most firms; there is sales and trading which works with owners of securities, investment banking which works with issuers of securities (firms and governments) and capital markets which goes in between the other two.
