What are two main functions that investment banks perform?
Ans. The two main functions of an investment bank are:
(a) Raising funds for its clients: It raises funds through underwriting syndicate or from its own sources for its clients.
(b) Helping in Sale and Purchase of Securities: Investment bank advises the firm that is engaged in the process of capital acquisition regarding what kinds of securities should be issued, what will be right time for issue, what should be price of the security etc. It also ensures that all legal formalities related to issue are met.
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