Investment Banking and Securities Intermediation

This industry comprises establishments primarily engaged in underwriting, originating, and/or maintaining markets for issues of securities, or acting as agents (i.e., brokers) between buyers and sellers in buying or selling securities on a commission or transaction fee basis. Investment bankers act as principals (i.e., investors who buy or sell on their own account) in firm commitment transactions or act as agents in best effort and standby commitments. This industry also includes establishments acting as principals in buying or selling securities generally on a spread basis, such as securities dealers or stock option dealers. Illustrative Examples: Bond dealing (i.e., acting as a principal in dealing securities to investors) Mutual fund agencies (i.e., brokerages) Securities brokerages Securities underwriting Stock brokerages Stock options dealing

Investment clubs or individual investors primarily engaged in buying or selling financial contracts (e.g., securities) on their own account are classified in Industry 523910, Miscellaneous Intermediation; and Establishments primarily engaged in accepting deposits and lending funds from these deposits are classified in Industry Group 5221, Depository Credit Intermediation.