What is Investment Banking ?

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An "investment bank" is generally a financial house which helps raise money for organisations. They generally do this through the following ways:
Corporate Finance - this is where the investment bank helps companies raise additional money. For example, say a company needs to raise additional money to fund research into new products so that they can stay ahead of their competitors. The investment bank might help sell shares in the company in order to raise additional capital. Another way of raising capital might be for the investment bank to act as on behalf of their clients by in trading in stocks.
Mergers & Acquisitions (M&A) - this term is fairly self explanatory. As an example, a company that has been doing well might seek to buy another company thereby creating a more competitive and more cost effective company. The companies come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.
Investment banks make their money by charging a percentage of the deal as their fee.