Investment banking firms sell shares in their firms to businesses and invest the pooled proceeds in corporate and government securities.

Question

Quizplus · Accepted Answer

Investment banking firms do not sell shares in their firms to businesses. They provide various financial services such as underwriting, mergers and acquisitions, and securities trading to corporations, governments and other entities. They may also invest in securities, but they typically do not pool the proceeds from selling shares in their own firm to do so.

Investment Banking Firms Sell Shares in Their Firms to Businesses