What services do investment banks primarily offer?

Investment banks primarily focus on providing specialized advice and underwriting services for businesses. Their main role includes assisting companies in raising capital by issuing stocks and bonds, as well as offering strategic advisory services for mergers and acquisitions. This involves analyzing market conditions, determining the appropriate valuation of firms, and helping structure transactions to optimize financial outcomes.

Investment banks connect businesses with investors and facilitate the process of bringing new securities to the market, which is known as underwriting. They perform due diligence on the companies seeking to raise funds, ensuring that all regulatory requirements are met, and that the investment is sound for potential investors. This core function of investment banks plays a crucial role in the financial markets, enabling businesses to grow and expand through access to necessary capital.

The other options focus on services that are not primarily associated with investment banking. Providing loans to consumers is generally a function of commercial banks. Managing insurance policies falls within the realm of insurance companies, while investing in superannuation funds aligns with funds management and retirement planning firms. Therefore, the primary function of investment banks lies in their specialized advisory and underwriting capabilities for businesses.