How Investment Banks Actually Make Money

Ever wondered how investment banks actually make money? In this video, we break down the business model of investment banks in simple terms and explain how firms like Goldman Sachs, Morgan Stanley, and JPMorgan generate billions of dollars every year. You'll learn how investment banks earn revenue through IPOs, mergers and acquisitions (M&A), underwriting, trading, asset management, and advisory services. We'll also explain what investment banks actually do, how they differ from commercial banks, and why companies are willing to pay them millions in fees. 📈 Invest with Webull! Deposit $500 & Receive $20 worth of fractional shares + 1 month of Webull Premium🚀 https://www.webull.com/k/MartikFinance 💰 Invest with Moomoo & Receive Up To 30 Free Stocks! 🤑 https://start.moomoo.com/0eflId 🔍 30$ discount on Seeking Alpha Premium (Best Stock Research 📈) https://link.seekingalpha.com/4HBD5TR/4G6SHH/ 📢 50$ discount on Alpha Picks https://link.seekingalpha.com/4HBD5TR/4HKP84/ ⭐$156 discount: Premium + Alpha Picks https://link.seekingalpha.com/4HBD5TR/4JZKZP/ Moomoo is a trusted, legally registered platform and a subsidiary of Futu Holdings, a company listed on the NASDAQ. Webull Financial LLC, Member SIPC, FINRA. Investing involves risk. (These are affiliates links, which means I get a commission for each purchase. See Terms & Conditions) 0:01 Intro 0:53 Volcker Rule 1:27 M&A Advisory 2:48 Underwriting 3:40 Spacex's IPO Example 4:08 Trading & Market Making 5:04 Asset & Wealth Management 6:30 Are Investment Banks Overpaid? 6:42 Relationships 6:57 Distribution 7:12 Balance Sheet 7:25 Trust 8:10 Commercial Bank 8:23 Hedge Fund 8:37 Investment Bank 9:00 Outro 📊 Next Watch: 👉 https://youtu.be/xmdBlkrkTN4 👉 https://youtu.be/UC-OkNBFNx4 💡 Don’t forget to like, subscribe, and hit the 🔔 bell icon for more easy-to-understand investing videos! *Disclaimer:* This video contains affiliate links, which means I may earn a small commission if you fund your account through them. Please invest responsibly and always conduct your own research before making any financial decisions. The content on this channel is for entertainment and informational purposes only. It is not intended to provide investment or financial advice, or recommendations regarding specific securities or investments. Always consult a qualified financial professional before making any investment decisions. Every investment involves risks.