Editing Equity issuance (section)

==Role of investment banks==
[[Investment bank]]s such as [[Goldman Sachs]] or [[Morgan Stanley]] are frequently [[intermediaries]] in the equity issue process, and for some of these firms the [[fee]]s associated with [[Initial public offering|IPO]]s are a substantial part of their income. The role of these [[bank]]s is to study the characteristics and business plans of the firm which is issuing equity and then recommend a minimum purchase price to investors. On the other hand, they are in charge of convincing investors that the purchase is a good [[wikt:opportunity|opportunity]] and therefore the success of IPO placement partly hinges on the [[reputation]] of the investment bank that is doing it.

Often it is done by [[joint stock]] companies to raise money.<ref>{{Cite web|title=What Is the Role of an Investment Bank?|url=https://www.investopedia.com/articles/investing/111114/whats-role-investment-bank.asp|access-date=2021-10-08|website=Investopedia|language=en}}</ref>