What does investment banking include? How is it different from commercial banks? What is the main business?

1. Investment Bank (Investment Bank, Corporate Finance) is a class of financial institutions corresponding to commercial banks, mainly engaged in securities issuance, underwriting, trading, corporate restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses of non-banking financial institutions, is the main financial intermediary in the capital market. Investment bank is the United States and the European continent of the title, the United Kingdom called merchant bank, in Japan refers to the securities company. The organizational form of investment banks are mainly four kinds: one is an independent professional investment banks, this type of institution is more, all over the world, they have their own business direction, such as the United States of America's Goldman Sachs, Morgan Stanley; two is a commercial bank owned by the investment bank, mainly through mergers and acquisitions of commercial banks, other investment banks, shareholding or the establishment of subsidiaries to engage in the business of investment banking, the form of In Britain and Germany and other countries is very typical, such as HSBC Group, UBS Group; Third, all-powerful banks directly operating investment banking business, this form mainly appeared in Europe, the bank engaged in investment banking business at the same time also engaged in commercial banking business, such as Deutsche Bank; Fourth, some large multinational corporations organized by the finance company. In China, the main representatives of the investment bank: China International Capital Corporation, CITIC Securities and so on.

2. Commercial banks: commercial and industrial deposits, lending as the main business, and in order to obtain profits for the purpose of monetary management enterprises.

Investment bank: is the business of capital industry, its main role is to provide users and suppliers of funds in the hands of the endowment of resources to provide configuration and combination of intermediary services, so as to provide both sides of the resources **** enjoy the benefits created. (It is the combination and operation of the ownership, operation and use of capital)

Investment banks and traditional commercial banks, despite the word "bank" in their names, there is a clear difference between investment banks and traditional commercial banks:

From the perspective of market positioning, banks are the core of the money market, while investment banks are the core of the capital market. core, and investment banks are the core of the capital market;

From the service function, commercial banks serve indirect financing, while investment banks serve direct financing;

From the content of the business, commercial banks focus on the absorption of deposits and the issuance of loans, while investment banks do not absorb all kinds of deposits, nor to the enterprise to issue loans, the focus of the business is the securities underwriting, mergers and acquisitions and asset reorganization;

From the source of income, the commercial bank's income mainly from the deposit and loan spread, while the investment bank's income mainly from securities underwriting, mergers and acquisitions and asset reorganization of the business of the fees or commissions.

3. Main business: the traditional business framework of securities issuance and underwriting, securities trading brokerage, securities private placement issuance, etc., corporate mergers and acquisitions, project financing, venture capital, corporate finance, investment consulting, asset and fund management, asset securitization, financial innovation, etc., have all become the core business components of investment banking.