Which term describes financial entities that handle securities but are not banks?

The correct response is investment banks, as they are specialized financial institutions that deal primarily with underwriting new debt and equity securities for all types of corporations. Their primary functions include advising on mergers and acquisitions and acting as intermediaries between issuers of securities and the public. They do not accept deposits like traditional banks, making them distinct entities in the financial sector.

In contrast, while credit unions are financial cooperatives that provide similar services to banks, they are based on member deposits and loans. Brokerage firms, often involved in buying and selling securities, serve as intermediaries for investors but may not engage in the broad financial advisory and capital raising activities that investment banks do. Portfolio management companies focus on managing investment portfolios for clients but do not typically handle securities in the same way that investment banks do. Thus, investment banks are specifically defined by their function and role within the financial market, making this term the best fit for the question.