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Investment banking - Wikipedia, the free encyclopedia
An investment bank is different from your traditional bank down the street in the sense that it does not keep any deposits with itself to pay you an interest nor does it guarantees the "safekeeping" of your money.
An investment bank is more specialized organization that takes in your money and after analyzing the possible risks and economic conditions gives you advice to convert it into more money. The services provided by Investment Banks takes many forms: securities underwriting, stock and bond trading, facilitating mergers and acquisitions, arranging and funding syndicated loans and providing financial advice to companies on aspects like pricing of securities.
A broader and better definition of investment banking is to think of investment banking as an industry, which either trades directly in capital market products or uses the underlying capital markets, to construct different financial products
So an Investment Banker is an individual or institution who/which acts as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring.