what is an investment banker 
investment bankers are financial professionals who advise corporations as well as governments or other entities they help these clients raise capital money by issuing shares of stock or offering bonds investment bankers also can assist clients with financial transactions such acquisitions mergers and even the sale of the company investopedia jake shiinvestment banker role and responsibilitiesinvestment bankers facilitate large complicated financial transactions these transactions may include structuring an acquisition merger or sale for clients another responsibility of investment bankers is issuing securities as a means of raising capital this involves creating detailed documentation for the securities and exchange commission sec necessary for a company to go public an investment banker can save a client time and money by identifying the risks associated with a particular project before a company moves forward in theory the investment banker is an expert in their field or industry who has a finger on the pulse of the current investing climate businesses and nonprofit institutions often turn to investment bankers for advice on how best to plan their development an investment banker also assists with pricing financial instruments and navigating regulatory requirements when a company holds its initial public offering ipo an investment bank will buy all or much of that company s shares directly acting as an intermediary in this case acting on behalf of the company going public the investment bank will subsequently sell the company s shares into the public market creating immediate liquidity an investment bank stands to make a profit in this scenario generally pricing its shares at a markup while experienced analysts at the investment bank use their expertise to price the stock accurately an investment banker can lose money on the deal if they have overvalued the shares investment bankers and their firms take on a high level of risk during an ipo they must have a strong sense of the market and the industry in which their clients are positioned to decide whether the risk is worth the potential profit an example of investment banking and an ipo