Wednesday, May 15, 2013

The Benefits of Investment Banking

An investment bank is a financial organization that assists persons, companies, and governments in improving capital by underwriting  and/or  acting as the consumer’s agent  in the issuance  of  securities.  An investment bank may also lend a hand companies involved  in  mergers and acquisitions  and  provide  auxiliary services such as market making, trading of derivatives and equity securities.


Investment banks have played and will continue to play a very crucial role in market transactions on behalf investors, government and corporations. There are so many advantages for investing in investment banks some of the benefits are
  1. Wide range of finance-oriented functions 
  2. Control in issuance of stock and oversee its sale to the public 
  3. No limitations on income
  4. Assured returns
  5. Capital protection
  6. Tax advantages (long term FD has tax advantages) 
  7. No downside risk


Source: http://www.quora.com/Investment-Banking/What-are-the-advantagaes-and-disadvantages-of-fixed-deposit

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