Does anyone know the logic behind a small investment bank?

by a searcher from University of Tampa

1 month ago

Hello All,

So I heard that for a boutique investment bank (not those famous ones), they need to open enough account from their customers, and raise enough money to survive. I do not fully understand the logic here. As an intermediary, why do they need to raise money to digest the stocks?

I know the question seems silly but thanks for any advices.

Thanks!

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searcher from University of California, Berkeley - Haas School of Business

Basics of IB: M&A Advisory, Research, Capital Markets (equity and debt). These are fee based businesses. They do not "open customer accounts" as in take their deposits. Most boutiques focus on specific industries and stay away from capital markets and research. The bigger non bulge bracket firms may selectively do some capital raises (mostly private markets) but only in industries where they are active.

1 month ago | like reply | 0 likes

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