What type of organizations manage securities for investment purposes?

Investment banks and investment companies are specialized organizations that manage securities for investment purposes. Investment banks primarily focus on underwriting new debt and equity securities, facilitating mergers and acquisitions, and providing advisory services for financial transactions. They play a critical role in helping companies raise capital by issuing stocks and bonds.

Investment companies, on the other hand, pool money from multiple investors to purchase a diversified portfolio of securities, which can include stocks, bonds, and other financial instruments. These companies manage mutual funds, exchange-traded funds (ETFs), and other investment vehicles, allowing individual investors to gain exposure to a managed portfolio without the need to buy and manage the securities themselves.

The other options, while involved in financial services, do not primarily focus on managing securities for investment purposes. Insurance companies mainly provide coverage and risk management rather than investing for growth. Retail banks typically offer savings and checking accounts and loans and may engage in limited investment services, but they do not primarily manage investment portfolios like investment banks and companies. Credit unions serve their members by offering financial services, but they also do not specialize in managing securities for investment purposes.