A:

The 'FIG' at an investment bank usually refers to the financial institutions group - a group of professionals that provides investment banking and merger and acquisition expertise to financial institutions. In order to provide more tailored services, some investment banks further segment their areas of expertise under the financial institutions group into a banking or financial services group, and an insurance group. Some investment banks use these sorts of divisions more as a marketing technique than as a representation of real expertise.

Some examples of companies that may represent prospective FIG clients include insurance companies specializing in personal or commercial insurance products, commercial finance companies that provide financial services to businesses, banks, brokerages, investment dealers, and asset and wealth management companies.

The services that the FIGs may provide to clients include, but are not limited to: private and public equity or debt financing, recapitalization, financial restructurings, mergers, acquisitions, corporate valuations, expert financial opinions and corollary analysis and advisory services.

Some other investment banking segments include: health care, industrial, media, telecommunications, mining, energy, retail, technology and real estate, although this is by no means an exhaustive list of the business divisions within which investment banks operate.

For further reading, see IPO Basics Tutorial and The Basics Of Mergers And Acquisitions.

RELATED FAQS
  1. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
  2. What is the financial services sector?

    Go beyond banks and credit unions to learn about the diverse group of companies that make up the fast-growing financial services ... Read Answer >>
  3. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  4. What are examples of popular companies in the banking sector?

    Learn about some of the popular companies for bank stocks in the banking industry, a prime component of the financial services ... Read Answer >>
  5. What is a typical price-to-book ratio in the financial services sector?

    Understand key distinctions of the financial services sector and learn some of the equity valuation metrics analysts use ... Read Answer >>
  6. What's the difference between a merger and an acquisition?

    Learn about the difference between mergers and acquisitions. Discover what factors may encourage a company to merge or acquire ... Read Answer >>
Related Articles
  1. Insights

    The World's Top 10 Banks

    Learn more about the world's largest banks and how more financial power shifts eastward as China is home to four of the world's largest banks.
  2. Small Business

    What Merger And Acquisition Firms Do

    The merger or acquisition process can be intimidating. This is why merger and acquisition firms step in to facilitate the process.
  3. Insights

    The Role of Commercial Banks in the Economy

    We interact with commercial banks daily to carry out simple financial tasks. That said, the function and creation of a commercial bank is anything but simple.
  4. Investing

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...
  5. Insights

    How Investment Banks Make Money

    Take a look at methods through which investment banks make money, such as investment research, asset management, and brokerage and underwriting services.
  6. Investing

    Top 4 Companies Owned by JPMorgan (JPM)

    Read about JPMorgan Chase & Company's main operating subsidiaries, including its retail and investment banking operations and its global asset management firm.
  7. Managing Wealth

    What's Investment Banking?

    An investment bank is a special type of bank involved in a variety of large and complex financial services for major institutions.
  8. Personal Finance

    Financials Sector: Industries Snapshot (WFC, BLK)

    Learn about the industries and stocks that make up the financial sector of the S&P 500 index. The industries include banking, wealth management and insurance.
  9. Investing

    The Globalization Of Financial Services

    The key to survival for many financial institutions will be to efficiently serve a global customer base.
RELATED TERMS
  1. Capital Markets Group

    A division within a larger company that uses its expertise in ...
  2. Financial Institution - FI

    An establishment that focuses on dealing with financial transactions, ...
  3. Advisory Management

    A group within a bank or brokerage that provides professional, ...
  4. Investment Banking

    A specific division of banking related to the creation of capital ...
  5. Assisted Merger

    The merger of two or more financial institutions undertaken with ...
  6. Australian Bankers Association (ABA)

    An association of banks that work on behalf of its member financial ...
Hot Definitions
  1. Five Cs Of Credit

    A method used by lenders to determine the credit worthiness of potential borrowers. The system weighs five characteristics ...
  2. Straddle

    An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration ...
  3. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  4. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  5. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  6. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
Trading Center