This is highly specialized work to deal in investment and the poor investor lack knowledge usually are guided investment banking in this field. They specialized in the marketing of new issues of stock and bonds. They sell these stocks and bonds to general public or institution. Usually investment banks underwrite a coporations's new security issues. They in the capacity of securities and bonds guarantee the sale of the company's securities and deliver a cheque to it for these new securities. They make their profit by charging a commission. The securities of investment banks are useful not only to the company or the promoters but also to the investors.
No comments:
Post a Comment