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What is the Meaning of Investment Bank | Definition and What is Investment Bank

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Meanings, definitions, concepts of daily use
The concept of Bank has several uses. One of them refers to all banks and bankers. The Bank can therefore refer to entities that are dedicated to facilitate the financing.
Investment, on the other hand, is an economic concept related to the investment of capital for future earnings. This means that the investor resigns an immediate gain for a future that is unlikely but which, in principle, must be greater than the current. Investment includes three primary variables: performance expected (how much money is expected to win), the risk (what is the probability of obtaining the gain expected) and time (when it reaches the gain).
Means investment bank or Bank business banking entity that is specialized to obtain money or other financial resources so that private companies or Governments may make investments. These financial instruments are obtained by the Investment Bank through the issue and sale of securities on the capital markets.
Often, the Investment Bank also offers consulting services for the development of acquisitions, mergers or divisions.
The investment bank operating rules vary depending on country. In general, the authorities grant special for this kind of banking licences, without that they can function at the same time as commercial banks. The Investment Bank, therefore, is not able to accept deposits.
The financial crisis that erupted in the United States in 2008 was generated primarily by the bankruptcy of many banks of investment such as Lehman Brothers.
Published for educational purposes

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