Asset Management vs Investment Banking

Understanding asset management and investment banking. Investment bankers work with companies and make recommendations to buy, sell, and hold securities. Asset managers build and maintain investment portfolios for individuals and organizations.

The difference between asset management and investment banking is that asset management focuses on buying, while investment banking specializes exclusively in selling.

Investment banks play a crucial role as the intermediary between large enterprises and investors, facilitating the flow of capital in the financial ecosystem.

Functions of investment bank:

• ascertaining the nature and extent of borrowers' financial needs;
• negotiating the terms of the loan;
• choosing the type of securities, determining the terms of their issue and subsequent placement among investors;
• organization of guarantee banking syndicates, providing a secondary market for previously issued securities;
• buying and selling large blocks of stocks and bonds for its account;
• providing loans to buyers of securities.

FinCzech assists with asset registration in the Czech Republic.