Investment banking is a business activity in which a company purchases newly issued securities, such as stocks and bonds, from businesses and governments. Such a company, called an investment bank, then resells the securities to individual investors in smaller quantities. Thus, the investment bank helps large borrowers raise money quickly and efficiently by taking over much of the job of marketing the stocks and bonds that are being issued. Without investment banks, businesses that lack experience in doing so would have to market their own securities.

