Man learnt to invest a long time ago, but investment banking
has a relatively short history. It wasn't until the Dutch East
India Company, VOC, started issuing bonds and shares of stock
to the general public that investment banking saw the light of
the day. But since then, the services provided by investment
banks has grown exponentially and it is today considered to be
one of the most lucrative segments of financial institutions.
Investment banking is different from commercial or retail banks
in the fact that they do not take deposits. But this is not the
only difference, there are other things that make investment
banking unlike any other form of banking. There are a number
of functions performed by investment banks. Investment
bankers in the U.S. must be a licensed broker-dealer and they
must follow the rules and regulations laid down by the
Securities and Exchange Commission (SEC) and Financial
Industry Regulatory Authority (FINRA).
Knowing the history of investment banking, the manner in
which it has evolved over the period of time and the different
services that it offers can help anyone who wants to be an
investment banker or who is interested in investment banking.
