A Comparative Study of Legal Nature of Investment Banks in Iran and the UK

Changes in financial markets across the world And organized development of financial markets (such as stock market) and new financial innovations lead to creation of new financial intermediaries such as investment banks that play the role of money transfer from surplus units to deficit units, as one of the most important financial intermediaries. Indeed, investment banks, as active financial institutions in the capital market, accelerate the process of qualitative and quantitative promotion of market actions. They can make and identify ideal opportunities for their customers, and prepare mechanisms for promotion of efficiency and effectiveness of capital market and thus economic development, with their large–scale interaction in economics by implementation of a combination of skilled human force and accurate recognition of economy inside and outside the country. That is why in research, we have tried to study their legal nature and their activities in the capital market, and to compare them with their English counterpart known as one of primary investment trading center in the world, comprising about half of investment firms. Then we will see how far Iranian investment banks are from the structure of real investment banks in the extensive domains such as organizational frame work, monitoring institutions and areas of activity in the world today.

Keywords:

Investment Bank , Legal Nature , Sanction