Investment banks help companies and governments raise funds by issuing and selling securitiesin the capital markets (both equityand debt), as well as providing advice on transactions such as mergers and acquisitions.

A majority of investment banks also offer strategic advisory services for mergers,acquisitions,divestitureor other financial services for clients, such as the trading of derivatives, fixed income,foreign exchange, commodity, and equity securities.

An investment banker can have one of the following departments:

1)       Traditional investment banking – Helping customers raise money (sale of securities, bonds) and advising on mergers and acquisitions. These are extremely challenging roles and difficult to land.

2)       Investment management – professional management of investments in various securities and other assets to meet the financial goals of the investors and to suit their risk appetite.

3)       Sales and trading – Sale of various financial products and proprietary trading

4)      Structuring - Structuring has been a relatively recent division as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities. The necessity for numerical ability has created jobs for physics and math Ph.D.swho act as quants.

5)      Merchant banking is a private equity activity of investment banks. Examples include Goldman Sachs Capital Partners, JPMorgan Partners, etc. Sometimes, merchant banking is a part of Alternative Investment division.

6)      Researchis the division which reviews companies and writes reports about their prospects, often with "buy" or "sell" ratings. While the research division generates no revenue, its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients.

7)      Strategyis the division which advises external as well as internal clients on the strategies that can be adopted in various markets. Ranging from derivatives to specific industries, strategists place companies and industries in a quantitative framework with full consideration of the macroeconomic scene. This strategy often affects the way the firm will operate in the market, the direction it would like to take in terms of its proprietary and flow positions, the suggestions salespersons give to clients, as well as the way structurers create new products.

Apart from this, employees in investment banks can have IT or back-office profiles. However the term Investment Banker is generally used for a person working in one of the above departments.