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The purpose of this article is to describe the important role of investment banking firms in the capital market and their possible role in the econmic development of Iran. Unfortunately,
investment banking firms did not exist in Iran. Iranian corporations have not publicly issued securities because of easy
access to subsidized bank's credits. Now that bank's credits are
limited and becoming more expensive, we predict investment banking firms will begin to offer the following servies:
1- Advising Corporations on how to offer different securities
publicly.
2- Designing new securities according to the needs of Iranian
capital market.
3- Helping government organizations on privatization of
government owned companies.


4- Giving advice on pricing of new securities.
5- Helping corporations on mergers and acquisitions.