Question

In: Finance

Briefly describe each of the following financial institutions: investment banks, commercial banks, financial services corporations, pension...

Briefly describe each of the following financial institutions: investment banks, commercial banks, financial
services corporations, pension funds, mutual funds, exchange traded funds, hedge funds, and private
equity companies

Solutions

Expert Solution

Investment bank refers to intermediary services provided by financial institutions to their clients. They provide a channel between the investor and corporation. Investment banks provide advisory services on various corporate issues like public offer, underwriting, merger and acquisition etc.

Commercial banks -are those financial institutions which involve in the basic banking business and allied banking services. commercial banks accepts the public deposit and sanction funds in the form of loan and provides various services like brokerage services, and allied banking services.

Financial service corporations are the financial institutions which provide financial services. Financial institutions offer various services like banking, stock brokering services, insurance services, hire purchase services, lease financing services, factoring and forfeiting services, investment services etc.

Pension funds are also known as superannuation funds which provide retirement income. pension funds generally hold funds in large chunks to invest in listed public and private companies.

Mutual funds are those institutions which collect the fund from general public and investment in a portfolio on the basis of the investment objective on behalf of investors who contributed their funds to mutual funds. Mutual funds provide specialized investment and portfolio services.

Exchange traded fund is a type of mutual fund which follows or tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange

Hedge fund refers to the investment fund which pools funds from heterogeneous group of investors and invest into a variety of assets that uses varied and complex proprietary strategies and invests or trades in complex products like listed and unlisted derivatives

Private equity companies are those companies which invest their funds into private equity of start up companies and provides back up to the existing companies through a variety of investment strategies like venture capital, leveraged buyout and growth capital

jeff jeffy answered 9 months ago
Next > < Previous

Related Solutions

There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual...
There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual funds, hedge funds, pension funds, insurance companies, etc. Why are there so many different financial intermediaries other than commercial banks? How does an investor’s risk attitude and/or wealth play a role in his/her selection of a financial institution or intermediary? If you were an investor seeking moderate return for your investment, how would you select a financial institution or intermediary? Choose one and explain...
Briefly discuss the purpose and role that each type of financial institutions (depositary, contractual, and investment)...
Briefly discuss the purpose and role that each type of financial institutions (depositary, contractual, and investment) play in the U.S. economy. How do each of these institutions intersect with the various types of markets, i.e., capital, money, spot (cash), derivatives, Forex and Interbank, primary, and secondary (inclusive of OTC)?
Briefly discuss the purpose and role that each type of financial institutions (depositary, contractual, and investment)...
Briefly discuss the purpose and role that each type of financial institutions (depositary, contractual, and investment) play in the U.S. economy. How do each of these institutions intersect with the various types of markets, i.e., capital, money, spot (cash), derivatives, Forex and Interbank, primary, and secondary (inclusive of OTC)?
Non-Banking Financial Institutions: Are they substitute or complement of commercial Banks in Bangladesh? Give justifications.
Non-Banking Financial Institutions: Are they substitute or complement of commercial Banks in Bangladesh? Give justifications.
Explain how financial leverage at investment banks differ from financial leverage at more traditional commercial banks....
Explain how financial leverage at investment banks differ from financial leverage at more traditional commercial banks. What is the benefit of this leverage? What are the primary risks associated with the financial manager?
Why failure of (commercial) banks and many other financial intermediaries (such as investment banks) can lead...
Why failure of (commercial) banks and many other financial intermediaries (such as investment banks) can lead to a recession, such as the one observed after 2008 financial crisis? (Hint: your answer should relate to role of financial intermediaries and asymmetric information).
Briefly describe why it is important to impose capital requirements to commercial banks. What are the...
Briefly describe why it is important to impose capital requirements to commercial banks. What are the current capital requirements in the U.S.? Explain what Basel Accord is.
Impact of Regulation and Deregulation on Financial Services Carson Company relies heavily on commercial banks for...
Impact of Regulation and Deregulation on Financial Services Carson Company relies heavily on commercial banks for funding and for some other services. Explain how the services provided by a commercial bank (just the banking, not the nonbank, services) to Carson may be limited because of bank regulation. Explain the types of nonbank services that Carson Company can receive from the subsidiaries of a commercial bank as a result of deregulation. How might Carson Company be affected by the deregulation that...
Define the differences between Investment Banks and Commercial Banks. Discuss the differences in regulation and the advantages/disadvantages of each.
  Define the differences between Investment Banks and Commercial Banks. Discuss the differences in regulation and the advantages/disadvantages of each.
Briefly describe each of the following: the role of colonialism, international trade and debt, multinational corporations,...
Briefly describe each of the following: the role of colonialism, international trade and debt, multinational corporations, overpopulation, the distribution of resources, and agricultural technology on hunger and food insecurity globally.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT