investment-banking

Vocabulary Word

Definition

'Investment banking' is a special type of banking focused on raising capital. Investment banks act as intermediaries between companies that need money to grow or make acquisitions, and people or other organizations who have that money and want to invest it.

Examples in Different Contexts

In Mergers & Acquisitions, 'investment banking' firms offer expertise in negotiating deals and structuring transactions to align with strategic business goals. A business consultant might explain, 'Investment banking is essential for navigating the complexities of acquiring another company.'

Practice Scenarios

Business

Scenario:

Our company is in serious need of capital to expand our services overseas. We should consider partnering with an organization that can help us.

Response:

It sounds like this is where investment banking can really assist us. Let's discuss partnering with an investment bank.

Academics

Scenario:

Many opportunities await in the field of finance. An advanced business degree with a specialization could open up a variety of roles.

Response:

Yes, an MBA with a focus on investment banking might be perfect for our students who wish to pursue a career in finance.