What is Investment bank?
{{no sources|date=January 2024}} An '''Investment Bank''' is a [[business]] that helps other businesses (and also governments) [[Investment|borrow money]] and/or allow businesses to partially or fully sell themselves to other people and businesses. Unlike a regular [[bank]], they do not typically lend their own money or use their own money to buy part or all of a business. They help to match the business [[Finance|financing]] need to investors who are seeking to earn money by either lending to the business or owning part of the business. In the mid [[20th century]], certain investment banks started to help their business clients to sell their business entirely to other businesses instead of to investors, as well as to help businesses decide what other business they should buy, with a [[fee]] based on the sale price of the business. This is called [[Mergers and acquisitions|Mergers and Acquisitions]]. There are many small investment banks that only offer this activity, and do not help businesses to borrow money or sell ownership in the business. An investment bank helps businesses to borrow money using a contract known as a [[Bond (finance)|bond,]] and to sell ownership in the company using a contract known as [[stock]]'''.''' Most countries have government rules about these processes. The business must operate and disclose their [[Results|financial results]] in a certain manner. They can then borrow money using bonds and sell ownership using stock to the [[public]]. People can sell bonds and stock without being responsible for the operation and financial disclosures of the business. Some reasons that a business might choose to borrow money from [[Investor|investors]] instead of a bank may include: * The for lower [[Interest rate|interest rates]] * An interest rate that is [[Fixed interest|fixed]] (cannot changed) for a longer time than most banks would normally allow * Investors might be more willing to lend to a company more at risk at not being able to pay than a bank would be willing to do Some reaso