There were a lot of people who requested for this answer from a few e-mails I have been receiving, so I figured I will conduct an article which explains it. Investment banks have numerous methods in which they receive revenue. Just to inform you, the major investment banks are JP Morgan, Goldman Sachs, Meryll Lynch and Morgan Stanley. These investment banks have proven to be government backed, due to the size of the company’s operations and the how their overall performance impact our economy. An Investment Bank is exactly how it sounds. They handle other corporations, hedge funds, governments and individual investor’s funds, and also give them investment advice. Primarily, they have a number of top shareholders that invest huge sums of capital to the investment bank with expectations of the company’s stock to rise in the future, which will yield the investor a profit. These banks have traders and investments managers within its firm for various other methods of other financial gain.