Investment bank is the product of the development of securities and joint-stock company system at a specific stage, and it is an important subject of developed securities market and mature financial system. In the development of modern social economy, it plays an important role in communicating the supply and demand of funds, building a securities market, promoting enterprise mergers and acquisitions, promoting industrial concentration and economies of scale, and optimizing resource allocation.

Hedge fund (also known as hedge fund or arbitrage fund) means "risk hedge fund", which originated in the United States in the early 1950s. At that time, the purpose of operation was to use financial derivatives such as futures and options, as well as the operational skills of buying and selling different related stocks and hedging risks, which could avoid and resolve investment risks to a certain extent.