There appears to be considerable confusion today about what does and does not constitute an «investment bank» and «investment banker». In the strictest definition, investment banking is the raising of funds, both in debt and equity, and the name of the division handling this in an investment bank is often called the «Investment Banking Division» (IBD). However, only a few small boutique firms solely provide this, with almost all investment banks heavily involved in providing additional financial services for clients such as the trading of fixed income, foreign exchange, commodity and equity securities. It is therefore acceptable to refer to both the «Investment Banking Division» and other ‘front office’ divisions such as «Fixed Income» as «investment banking».

More commonly used today to characterize what was traditionally termed «investment banking» is «sell side». This is trading securities for cash or securities (i.e., facilitating transactions, market making), or promoting securities (i.e. underwriting, research, etc.). The «buy side» constitutes the pension funds, mutual funds, hedge funds, and the investing public who consume the products and services of the sell side in order to maximize their return.