Editing Investment banking (section)

==History==
===Early history===
The [[Dutch East India Company]] was the first company to issue [[Bond (finance)|bonds]] and [[Share (finance)|shares]] of [[stock]] to the general public. It was also the first [[publicly traded company]], being the first company to be publicly [[Listing (finance)|listed]].<ref>{{cite book |last1=Cross |first1=Frank B. |last2=Prentice |first2=Robert A. |title=Law and Corporate Finance |publisher=Edward Elgar Publishing Ltd. |date=2007 |isbn=978-1847201072 |page=130}}</ref><ref>{{cite web |url=https://www.cscollege.gov.sg/Knowledge/Pages/Hub-Cities-London.aspx |title=Hub Cities — London: Why did London lose its preeminent port hub status, and how has it continued to retain its dominance in marine logistics, insurance, financing and law? |publisher=[[Civil Service College Singapore]] |last=Wu |first=Wei Neng |date=26 February 2014 |access-date=21 November 2017 |archive-date=8 March 2021 |archive-url=https://web.archive.org/web/20210308234412/https://www.cscollege.gov.sg/Knowledge/Pages/Hub-Cities-London.aspx |url-status=dead }}</ref>

===Further developments===
{{See also|History of investment banking in the United States}}
Investment banking has changed over the years, beginning as a partnership firm focused on underwriting security issuance, i.e. [[initial public offering]]s (IPOs) and [[secondary market offering]]s, [[brokerage firm|brokerage]], and mergers and acquisitions, and evolving into a "full-service" range including [[securities research]], [[proprietary trading]], and [[investment management]].<ref>{{cite journal |first=Andrew F. |last=Tuch |url=https://www.hblr.org/wp-content/uploads/sites/18/2018/09/Tuch-2.pdf |title=The Remaking of Wall Street |journal=Harvard Business Law Review |pages=316–373 |volume=7 |access-date=2019-06-19 |archive-date=2020-12-03 |archive-url=https://web.archive.org/web/20201203222402/http://www.hblr.org/wp-content/uploads/sites/18/2018/09/Tuch-2.pdf |url-status=live }}</ref> In the 21st century, the SEC filings of the major independent investment banks such as [[Goldman Sachs]] and [[Morgan Stanley]] reflect three product segments:
# investment banking (mergers and acquisitions, advisory services, and securities underwriting),
# asset management (sponsored investment funds), and 
# trading and principal investments (broker-dealer activities, including proprietary trading ("dealer" transactions) and brokerage trading ("broker" transactions)).<ref name=Rhee2010>{{cite journal |last=Rhee |first=R. J. |date=2010 |url=http://digitalcommons.law.umaryland.edu/fac_pubs/937/ |title=The Decline of Investment Banking: Preliminary Thoughts on the Evolution of the Industry 1996–2008 |journal=Journal of Business and Technology Law |pages=75–98 |access-date=2013-01-11 |archive-date=2021-11-02 |archive-url=https://web.archive.org/web/20211102114341/https://digitalcommons.law.umaryland.edu/fac_pubs/937/ |url-status=live }}</ref>

In the United States, commercial banking and investment banking were separated by the [[Glass–Steagall legislation|Glass–Steagall Act]], which was repealed in 1999. The repeal led to more "[[universal bank]]s" offering an even greater range of services. Many large commercial banks have therefore developed investment banking divisions through acquisitions and hiring. Notable full-service investment banks with a significant investment banking division (IBD) include [[JPMorgan Chase]], [[Bank of America]], [[Citigroup]], [[Deutsche Bank]], [[UBS]] (Acquired [[Credit Suisse]]), and [[Barclays]].

After the [[2008 financial crisis]] and the subsequent passage of the ''Dodd-Frank Act of 2010'', regulations have limited certain investment banking operations, notably with the Volcker Rule's restrictions on proprietary trading.<ref name=Morrison>{{cite journal |last1=Morrison |first1=A. D. |last2=Wilhelm |first2=W. J. |date=2007 |url=http://gates.comm.virginia.edu/wjw9a/Papers/JACF%20Morrison%20Wilhelm%20Final%20version.pdf |title=Investment Banking: Past, Present, and Future |journal=Journal of Applied Corporate Finance |volume=19 |number=1 |pages=42–54 |doi=10.1111/j.1745-6622.2007.00124.x |s2cid=153324348 |access-date=2013-01-10 |archive-date=2020-10-31 |archive-url=https://web.archive.org/web/20201031130731/https://gates.comm.virginia.edu/wjw9a/Papers/JACF%20Morrison%20Wilhelm%20Final%20version.pdf |url-status=dead }}</ref>

The traditional service of underwriting security issues has declined as a percentage of revenue. As far back as 1960, 70% of [[Merrill Lynch]]'s revenue was derived from transaction commissions while "traditional investment banking" services accounted for 5%. However, Merrill Lynch was a relatively "retail-focused" firm with a large brokerage network.<ref name=Morrison />