The main difference between investment banks and commercial banks is that investment banks make highly leveraged bets on small, hedged risks, while commercial banks take on huge risks speculating on market moves commercial banks pool money from investors to invest in stocks, bonds and real estate, while investment banks do not investment banks pool money from investors to invest in stocks, bonds and real estate, while commercial banks do not investment banks buy securities from businesses and sell them to investors, while commercial banks create their own securities and offer them to depositors and borrowers commercial banks buy securities from businesses and sell them to investors, while investment banks create their own securities and offer them to depositors and borrowers The main difference between investment banks and commercial banks is that investment banks make highly leveraged bets on small, hedged risks, while commercial banks take on huge risks speculating on market moves commercial banks pool money from investors to invest in stocks, bonds and real estate, while investment banks do not investment banks pool money from investors to invest in stocks, bonds and real estate, while commercial banks do not investment banks buy securities from businesses and sell them to investors, while commercial banks create their own securities and offer them to depositors and borrowers commercial banks buy securities from businesses and sell them to investors, while investment banks create their own securities and offer them to depositors and borrowers