what is the difference between commercial banking and
investment banking?
Answer Posted / laxman singh rathore
INVESTMENT BANKING:-
Investment banking comprises of underwriting,an
intermediary between an issuer of securities and the
investing public, facilitating mergers and other corporate
restructuring, and also acting as a broker for
institutional clients. The basic work of investment banker
is to allot and receive the application form and money,and
refund the same as if there is partial allotment of shares.
Commercial Banking-
Commercial banks are what people typically refer to
as “banks.” A commercial bank can provide loans to
individuals and small businesses. It raises funds by
collecting deposits from these same groups of people, as
well as from interest charged on loans. It also purchases
bonds from governments and corporate entities.
The banks described above are the most common definition of
commercial banks. Commercial banking is also sometimes
defined as the provision of banking services such as
checking and loans to large businesses, as distinguished
from individual citizens. In this case, banking provided to
individuals is referred to as retail banking to
differentiate it from the second definition of commercial
banking.
Commercial banking and merchant banking both involve the
provision of financial services and advice.
Merchant banking and Investemnt Banking both are same as
they invest depositor's assets in finance portfolio and
managing these investments.
I think u all guyz r now clear......
thank you.....
Regards,
Laxman S. Rathore
JIMS college-Jaipur
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