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The term Investment Banking is rarely misconceived as an investment in the field of banking. However, it is generally a banking function that commercial banks apply to assist their clients generate wealth and acquire funds through sensible investment of their assets. In fact the initial purpose of investment banking is to raise funds and advice on acquisitions, mergers and other corporate financial policies. Since, banking firms have been executing diversified activities, investment banking has come to play an different role which include distributing and underwriting latest security issues, offering financial advice to corporate clients, offering financial security to the investors and providing brokerage services to institutional investors and the public. The main role of investment banking is to advice companies in raising funds and money. There are two methods of raising funds and money which investment banking generally engages in they include through private placements and capital markets. Through capital markets, investment banking can raise funds in two ways which include by advising the company on debt issues and by selling the companies equities in the stick market in an IPO (initial public offering) or by secondary offering. Some of the private placement transactions include merchant banking, divestitures, private debt placements, private equity investments and acquisitions. Investment banking has an exclusive network of financial and industrial contacts, legal processes, current market know-how and comparable events which will make their clients to produce an edge to their competitors. ABN Amro, Barclays Capital, Banc of America Securities and BNP Paribas are some of the main global private and public investments banks which deal in this process of investment banking.

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