Online investment bank refers to that bank, which offers services related to investment banking online or over the Internet. At present, a large number of reputed investment banking institutions are providing this type of services to the customers.
Investment banking is that type of banking, which involves financing for government agencies and other corporations by issuance and trading of securities in the primary market. Investment banks help companies to raise finance both from the debt capital market and equity capital market in private and public sectors. Investment banks also offer consultation services regarding issues like mergers & acquisition, as well as other important financial events.
The investment banks are different in nature from the commercial banks. In a number of instances, the investment banks function as mediators or third parties for their customers in transaction of securities.
The principal activities of investment banks can be categorized into the following types:
- Collection of funds through capital markets
- Consultancy services associated with mergers and acquisitions
- Investment management services (administration of different types of investments like stocks, bonds, and real estate)
- Buying and selling of securities
- Research activities
- Risk analysis and management
- Investment portfolio management
The leading online investment banks include the following:
- Charles Schwab
- Chase
- Synthesis Bank
- Banknorth Group
- Boston Private Bank
- ICICI Bank
- Bank of America
