1. Commercial Banking
It centers around accepting deposits and lending money to individuals and businesses, offering services like mortgages, auto loans, and business loans…
In contrast, investment banking does not deal with individual deposits but instead focuses on capital market activities and advisory services!
2. Asset Management
Asset managers oversee portfolios of securities or assets on behalf of their clients, aiming to achieve specified investment goals, handling mutual funds, pension funds, or individual portfolios…
Investment bankers, on the other hand, don’t typically manage long-term investments,
but facilitate transactions, such as helping a company go public or advising on a merger.
3. Private Equity
These firms invest in private companies (or take public companies private) with the aim of selling their stake later at a profit.
Investment banks may sometimes advise or facilitate these transactions for PE firms, but they don’t typically engage in long-term company ownership.
4. Financial Advising
Financial advisors help individuals plan and manage their finances, often providing advice on retirement, education funding, or investments.
Investment bankers, however, advise companies on significant financial decisions and strategies, like capital raises or acquisitions.
5. Hedge Funds
These funds pool capital from various investors to invest in a broad array of assets, often employing aggressive strategies.
Investment banking can intersect with hedge funds when the latter participate in significant transactions, but the core operations differ.
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