Primary Market and Secondary Market | A Detailed Comparison

Primary market vs Secondary market

The companies or government entities fulfil their short term requirement of funds through the money market whereas they raise funds from the capital market to meet their long-term needs. The financial market is classified into three categories viz Money market, Capital market and Forex market.

Further, the capital market can be divided into the Stock Market and Debt market. Now the stock market, as well as Debt market, can be classified into Primary market and secondary market.

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Primary Market | Meaning, Functions and Features

primary market

Working capital is the basic requirement of any company for its operation or expansion whether it is public or private, and raising funds from the general public is one of the most popular ways to arrange finance. The companies or government entities raise capital by issuing securities to the investors.

The investors purchase those securities to invest their money to make returns which could be in the form of dividend or interest. Thus the issuing organisations meet their requirement of funds.

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Merchant Banking | Origin, Scope and Functions

merchant banking

Every corporation whether it is emerging or establish, require funds at some stage during its operation and raise capital from the financial market is the most popular and convenient mode of arranging finance. Hence, the business corporates raise from the market by issuing financial securities and on the other hand individuals or institutional investors purchase these securities to invest their money to earn a profit.

Thus the role of merchant banks emerges in such circumstances. In this topic, we will learn the concept of Merchant Banking in brief.

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Bank Deposits | Types of Deposit

bank deposits

Bank deposits simply refer to placing your money into banks or financial institutions for convenience, saving and safeguarding your money from theft and other risks of losses. To deposit your funds in a bank, you need to open a bank account in any commercial or other types of bank.

Also, the bank provides some interest against your balance amount at a certain rate called an interest rate. The interest rate varies from bank to bank and time to time and also depends upon the types of bank accounts you hold.

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Difference between Investment Banking and Merchant Banking

Difference between Investment Banking and Merchant Banking

In this lesson, we will discuss some key difference between investment banking and merchant banking services. Although, unlike commercial banks, both investment banks and merchant banks are engaged in specialized financial services to business corporations, yet there are some critical differences lies in their offered services, however, there is one similarity between both that is none of the banks provide their services to the general public.

Hence, let us discuss the key differences between investment banking and merchant banking.

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