Investment Banking Firms

          Sell or market new securities issued by businesses to individual and institutional investors. Brokerage firms assist individual who want to purchase new securities issues or who want to sell previously purchased securities. Investment banking and brokerage activities are often combined in the same firms. However, unlike mutual funds, investment banking and brokerage firms are not actively involved in financial intermediation. Rather than gathering the savings of individuals, these firms obtain their financial capital to carry out their activities from their own resources or from other financial institutions.