One of the main services offered by investment banks to companies is:
A) helping companies sell new debt or equity issues in the security markets.
B) making loans to companies.
C) taking deposits from companies.
D) all of the above.

Question

Quizplus · Accepted Answer

Investment banks typically act as intermediaries between companies and investors in the securities markets. One of their main services is helping companies issue new debt or equity securities, such as bonds or stocks, through underwriting and distribution. Investment banks may also provide advisory and other services related to mergers and acquisitions, asset management, and trading, among others, but these are not typically included in the main service of helping companies sell securities. Making loans or taking deposits are typically the realm of commercial banks, which are regulated differently and have different business models from investment banks.

One of the Main Services Offered by Investment Banks to Companies