INTRODUCTION
Investment Banks offer a variety of services but their most notable business is selling newly created securities.
When a private firm wants to become a public firm,it will obtain the services of an investment bank to design and sell the new stocks for the investing public to purchase.When an already public firm wants to raise additional
Capital to finance its on going activities or future growth, it will also obtain the services of an investment bank to sell its newly created securities to the public .One can think of investment banks as intermediaries who sell new securities on behalf of firms. Both investment banks and analyst are in a good position to monitor the firm and to indentify problems for shareholders. We would expect investment bankers to sell good securities(i.e they should not be selling securities of a poorly run firm) and for analyst to recommend good securities(i.e they should not be recommending stocks that they think will go down in value) .Therefore, they both do represent an important and integral part of the corporate governance system.
