What is an investment banker?
An investment banker is not a banker in the usual meaning of the term. An investment banker is a specialist who deals as an intermediary between a business who desires to sell stocks or bonds to the public and investors who want to buy these items from new or existing companies. Investment bankers guide a business through the preparation process in getting ready to sell securities and deal with the investing public in getting them ready to buy. Often, the investment banker acquires an ownership position in the securities, at least temporarily. They make their money from fees and from the spread between what the public pays and what the business receives for the stocks or bonds. This work of the investment banker is oversimplified, but you get the drift. For more information on this topic, contact your local SBDC.
