Investment Banking and Capital Markets have a harmonious relationship in helping companies raise capital when required. Investment Banking assists companies in making financial decisions like the price of the deals and the timing when a deal should be made. They help in deciding how the company’s finances can be designed and offer advice related to finance. They keep themselves updated with the changing trends and rules and always make sure that the company follows those rules. When the company wants to trade stocks, and bonds (financial products) these investment banks get paired up and work along with Capital Markets. They bring these securities to shareholders in the primary market. As we have seen, these capital markets have primary and secondary markets that pose as a platform for buying and selling these securities.

In these Primary Markets, Investment Banking plays the role of an underwriter and makes sure that the securities are sold smoothly. The secondary market is where used securities are traded. They help in the fluidity of the transaction between the parties involved. To put it simply. Investment Banking and Capital Markets get along together to maintain harmony in the financial environment by ensuring the perfect capital flow and growth of the company’s economy