What is the primary role of investment banks?

The primary role of investment banks is to advise and assist companies in raising financing. Investment banks play a critical role in the capital markets, helping businesses issue new securities, such as stocks and bonds, to raise capital for various purposes, including expansion, acquisitions, or restructuring. They provide expertise in structuring financial transactions, navigating regulatory requirements, and positioning a company in the market to attract investors.

Investment banks also conduct thorough analyses of a company's financial situation and market conditions, allowing them to provide tailored advice on the optimal strategies for raising funds. Their involvement typically includes underwriting new securities, where they guarantee that the issuer receives a certain amount of funds by purchasing the entire issue and selling it to investors. This ensures that the company raising funds can secure the necessary capital while shifting the risk of sale to the investment bank.

In contrast, managing personal wealth pertains more to private banks or wealth management firms, which focus on individual clients rather than corporate financing. Selling stocks directly to consumers is typically associated with brokerage firms, which act as intermediaries rather than providing comprehensive advisory services related to financing. Facilitating real estate transactions generally falls under the purview of real estate agencies or specialized firms rather than the traditional scope of an investment bank's activities. Thus, the role of advising