You might not be familiar with investment banks, which are neither typical financial institutions nor investment companies. For instance, you don't walk into one and ask for advice on high-yield investments from an investment broker. Instead, good investment banks support the global financial economy by helping companies bring shares to market and conduct high-level financial activities.
How Investment Banks Make Money
If you've ever owned a share of stock or a mutual fund, you've indirectly benefited from an investment bank. Small, boutique investment banks and large well-known ones assist private companies with becoming publicly traded corporations. The investment returns on your mutual funds are actually a result of an investment bank's initial work with a company.
Related: 10 Stocks for Beginners to Try in 2017
Investment banks provide specialized services for companies and large investors and help firms with complex financial transactions that include mergers and acquisitions and initial public stock offerings. Additionally, investment bankers handle various types of investments and trading for their own accounts.
GOBankingRates has identified a list of top 10 investment banks in the country. These picks were based on the investment banks' net revenues.
JP Morgan
Bank of America Merrill Lynch
Citigroup
Deutsche Bank
Morgan Stanley
Goldman Sachs
RBC Capital Markets
Credit Suisse
BMO Capital Markets
Barclays Investment
Investment Bank
Total Net Revenue
Financial Advisors
Treasury Services
Wealth Management
Corporate Banking
Mobile App
JP Morgan
$93.54 billion
Yes
Yes
Yes
Yes
Yes
Bank of America Merrill Lynch
$83.42 billion
Yes
Yes
Yes
Yes
Yes
Citigroup
$68.5 billion
Yes
Yes
Yes
Yes
No
Deutsche Bank
$35.55 billion
Yes
Yes
Yes
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Yes
Morgan Stanley
$35.2 billion
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Yes
Yes
Yes
Yes
Goldman Sachs
$33.82 billion
Yes
Yes
Yes
Yes
Yes
RBC Capital Markets
$26.74 billion
Yes
Yes
Yes
Yes
No
Credit Suisse
$23.38 billion
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Yes
Yes
Yes
Yes
BMO Capital Markets
$14.68 billion
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Yes
Yes
Yes
No
Barclays Investment
$6.8 billion
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Yes
Yes
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JP Morgan Chase
Net revenue: $93.54 billion
Headquartered in New York City, JP Morgan Chase gets GOBankingRates' top investment banking spot. A global leader, the firm offers advice and solutions for raising capital, managing risk and finance trading to international players including corporations, institutions and governments. In addition, it offers clients institutional investment research and private banking.
JP Morgan Chase is the No. 1 merchant acquirer in the world and can authorize transactions in more than 120 currencies, according to The Nilson Report in April 2016. As of Dec. 12, 2016, the firm surpassed the $1 trillion mark in year-to-date merchant processing volume, an impressive climb from its 2013 $750 billion figure.
Bank of America Merrill Lynch
Net revenue: $83.42 billion
Headquartered in North Carolina, this huge conglomerate's business consists of delivering banking, investing, asset management and other financial and risk management products and services to small and large corporations. Its corporate and investment banking division guides companies through managing expansion, raising capital and facilitating mergers and acquisitions across the globe.
Bank of America paid $415 million to settle an SEC inquiry in June 2016, according to The New York Times. The SEC claimed Merrill Lynch misused up to $58 billion in customers' cash each day from 2009 to 2012 by making complex options trades that earned it $50 million in profits.
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Citigroup
Net revenue: $68.5 billion
Founded in 1988, Citigroup is a financial conglomerate with broad international reach. Recognized for its presence in 100 locations worldwide, it serves consumers, corporations, governments and institutions with a complete slate of financial products and services that include consumer banking and credit, corporate and investment banking, securities brokerage, wealth management and more.
As part of a Mexican expansion in October 2016, Citibank committed to invest more than $1 billion in Banco Nacional De Mexico; Banamex. Citi will rename it Citibanamex.
Deutsche Bank
Net revenue: $35.55 billion
Another big name in the global banking sphere is Deutsche Bank AG, headquartered in Frankfurt, Germany. It provides commercial, retail and investment banking to clients in 70 countries and its services include transaction banking and asset and wealth management. Deutsche Bank's clients include corporations, governments, institutional investors, businesses and individuals.
Morgan Stanley
Net revenue: $35.2 billion
Financial holding company Morgan Stanley was incorporated in 1981 and has grown into a global force. Through its subsidiaries and affiliates, the company advises governments, institutions and individuals on financial and banking-related transactions involving institutional securities and wealth and investment management.
Morgan Stanley recently faced some troubles. In September 2016, it invested in Cadence Education and in October 2016, the state of Massachusetts charged the company with pursuing unethical and dishonest sales contests to cross-sell securities-based loans to increase business, according to Reuters.
Goldman Sachs
Net revenue: $33.82 billion
Goldman Sachs Group was incorporated in 1998 and is involved in investment banking, securities and investment management. The company's clients include corporations, financial institutions, governments and individuals. Its investment banking arm serves public and private clients in the U.S. and abroad.
The investment bank drama continues with Goldman Sachs, which, along with JPMorgan Chase and other financial organizations, is investing in the blockchain startup Axoni, according to Reuters on Dec. 19, 2016. The Commodity Futures Trading Commission charged Goldman with attempting to manipulate a global interest rate benchmark -- the ISDAFIX -- and levied a $120 million penalty on the firm.
See: Most Expensive Scandals of 2016
RBC Capital Markets
Net revenue: $26.74 billion
The Toronto-based Royal Bank of Canada Capital Markets is the investment banking arm of the Royal Bank of Canada -- and has 70 offices in 15 countries. The firm offers banking, advisory and capital markets products and services to corporations, institutional investors, asset managers and governments across the globe.
RBC Capital Markets reputation was sullied by a $2.5 million SEC fine for providing substantially inaccurate and misleading information in one of its client's -- the Rural/Metro Corporation -- proxy reports regarding the company's sale to a private equity firm during 2016, according to Here Is the City, a London-based, financial news website. It might make you wonder if any investment bank has a clean regulatory slate for 2016.
Credit Suisse
Net revenue: $23.38 billion
Founded in 1856 in Switzerland, Credit Suisse reaches across the globe with offices in more than 50 countries. Its businesses include private banking, wealth management and unique investment banking services, and it maintains a special focus on emerging markets in addition to its work in important, developed regions.
The investment banking bad news continues this year with Credit Suisse agreeing to pay $5.3 billion to settle a U.S. investigation into the packaging and sale of toxic mortgages during the global financial crisis in 2008. Other big financial firms such as Barclays and Deutsche Bank are involved in the continuing investigation, according to The New York Times.
BMO Capital Markets
Net revenue: $14.68 billion
Headquartered in Toronto, BMO Capital Markets is another banking powerhouse with equity and debt underwriting, corporate financing, merger and acquisitions services, market risk management and more. This North American behemoth owns 30 international offices.
To increase its U.S. investment banking business, BMO decided to acquire Greene Holcomb Fisher, a mergers and acquisitions advisory firm in 2016, according to Reuters. BMO made the move in hopes of doubling its mergers and acquisitions activity.
Barclays Investment
Net revenue: $6.8 billion
Founded in 1896, Barclays PLC is a global financial company involved in retail banking, investment banking, and wealth and investment management. The company is divided into segments consisting of Barclays UK and Barclays Corporate and International.
In 2016, Barclays joined JP Morgan Chase and Bank of America in being charged with civil fraud, according to Reuters. The firm faces these charges for selling mortgage-backed securities during the 2008 to 2009 financial crisis.
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This article originally appeared on GOBankingRates.com: The Top Investment Banks