Question

What is a pure-play investment bank?

Answer 1

Pure play is a business term used to indicate a company, business model or investment focused on a particular industry, product, service or line of distribution.

For example - A software company that only makes one particular type of application, such as a content management system, is a pure play company.

A pure play is an investors term for a publicly traded company that focus its resources on only one line of business. As such, the performance of its stock correlates highly to the performance of its particular industry or sector.

-->> The pure plays investment banks offered services such as equity and debt underwriting, asset management for both institutional and private clients, and trading market making services.

Goldman Sachs (GS), Morgan Stanley(MS), Merrill Lynch, Lehman Brothers, and Bear Stearns are perfect examples of pure-play investment banks.