What is investment banking? Particularly, how is it distinguished from commercial banking?
Investment Banking Training at Quality Thought
Overview
Step into the world of high finance with Quality Thought’s Investment Banking Program — a specialized training course designed to prepare you for a dynamic career in global finance, mergers and acquisitions, IPOs, and corporate advisory. Whether you are a fresh graduate, finance enthusiast, or working professional looking to pivot into investment banking, this course equips you with the essential skills and industry insights.
Why Choose Investment Banking?
Investment banking is one of the most prestigious and rewarding career paths in finance. Professionals in this domain work on:
Raising Capital for corporations and governments
Mergers and Acquisitions (M&A) strategy and execution
Equity and Debt Market Advisory
Initial Public Offerings (IPOs)
Financial Modelling & Valuations
What is Investment Banking?
Investment banking is a specialized segment of banking that focuses on helping companies, governments, and other entities raise capital and provide financial advisory services related to large, complex financial transactions. These include:
Mergers and Acquisitions (M&A)
Initial Public Offerings (IPOs)
Debt and Equity Financing
Corporate Restructuring
Underwriting of Securities
Valuation and Financial Modelling
Investment banks act as intermediaries between issuers of securities (like companies) and investors, and they often take on advisory, underwriting, and sales/trading roles.
Investment Banking vs Commercial Banking: Key Differences
| Feature | Investment Banking | Commercial Banking |
|---|---|---|
| Primary Role | Capital raising, advisory services, underwriting | Accepting deposits, giving loans, and managing savings |
| Clients | Corporates, governments, institutional investors | Individuals, small businesses, corporations |
| Revenue Model | Fees, commissions, trading profits | Interest on loans, fees on accounts |
| Risk Exposure | Market risk, deal risk | Credit risk, liquidity risk |
| Products/Services | IPOs, M&A, private placements, financial restructuring | Savings accounts, loans, credit cards, fixed deposits |
| Regulation Focus | Securities laws and capital markets regulations | Central bank regulations (e.g., RBI in India) |
| Example Firms | Goldman Sachs, Morgan Stanley, JPMorgan (IB divisions) | HDFC Bank, SBI, ICICI Bank, Bank of America (retail side) |

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