An investment company refers to an enterprise organization that collects a large amount of funds and makes a reasonable combination according to its investment objectives. Investment companies in a broad sense include trust and investment companies, finance companies, investment banks, fund companies, commercial banks, investment departments of insurance companies and other financial institutions, as well as various enterprises engaged in property rights investment and securities investment. Its business scope includes buying stocks and bonds of enterprises, participating in the establishment and business activities of enterprises, providing medium and long-term loans, operating domestic and foreign government bonds and fund management. The main sources of funds are issuing their own bonds, stocks or fund units, obtaining loans from other banks and accepting entrusted deposits. In a narrow sense, an investment company refers to the main body of a legal person investment fund and is a profit-making joint stock limited company established according to law. Investors become shareholders by buying shares in the company, and the shareholders' meeting chooses an investment management company to manage the company's assets.
What is an investment bank?
Investment bank in a broad sense: refers to any financial institution engaged in Wall Street financial business, including almost all financial activities such as securities, international marine insurance and real estate investment.
Broadly speaking, investment banks refer to financial institutions that operate all capital market businesses, including securities underwriting and brokerage, corporate financing, mergers and acquisitions, consulting services, asset management and venture capital. Compared with the first definition, they do not include real estate brokerage, insurance and mortgage business.
In a narrow sense, investment banks refer to financial institutions that operate part of the capital market business, including securities underwriting and brokerage, corporate financing, mergers and acquisitions, etc. Compared with the second definition, it does not include innovative businesses such as venture capital, fund management and risk management tools.
In a narrow sense, investment banks only refer to financial institutions engaged in securities underwriting and financing in the primary market and securities trading and brokerage in the secondary market.