1, business scope. The main business of investment banks is to provide financing services for enterprises and governments, including stock issuance, bond issuance, mergers and acquisitions, asset securitization and so on. The main business of securities firms is to provide securities trading, investment consulting, asset management and other services for individuals and institutional investors.
2. Customer base. The clients of investment banks are mainly enterprises and governments, including listed companies, unlisted enterprises and government agencies. The clients of securities firms are mainly individuals and institutional investors, including retail investors, institutional investors and fund companies.
3. Risk management. The business risk of investment banks is relatively high, which requires complex risk management and control; However, the operating risk of securities firms is relatively low, mainly through securities trading and asset management.
4. Regulatory agencies. Investment banks are mainly supervised by banking regulators, such as the China Banking Regulatory Commission; Brokers are mainly supervised by securities regulatory agencies, such as China Securities Regulatory Commission.