Selecting an Investment Bank
After a company decides to go public, it faces the problem of how to sell its stock to a large number of investors. Although most companies know how to sell their pro ducts, few have experience in selling securities. To help in this process, the company will interview a number of different investment banks, also called underwriters, and then select one to be the lead underwriter. To understand the factors that affect this choice, it helps to understand exactly what investment banks do.