Investment Bank
An investment bank is a financial institution that, on behalf of clients, underwrites and arranges (underwriting) the issuance of stocks, bonds, or derivatives, advises on fundraising or corporate acquisitions (advisory), provides liquidity for certain securities (market making), and trades securities, foreign exchange, commodities, and related derivatives on behalf of clients (fiduciary).
The field is narrow and performance pressure is severe, so lifespans are short, and even those doing well can easily collapse all at once. Those covering overseas markets may find their days and nights reversed. Of course, what is commonly true is that the really busy time is during market hours, and once the market closes, they can enjoy some free time. The difference from Asset Management Company or full-time investors is that the latter benefit when the valuation of invested assets rises, but in the case of S&T, the more commissions that come in, the better. In other words, even in a bear market, the higher the turnover of clients' money, the more advantageous it is.
Topics: Financial Institutions
Category: Wiki/Economy