Merchant Banking vs Investment Banking - Investment Banking by eduCBA

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For full text article go to : https://www.educorporatebridge.com/investment-banking/merchant-banking-vs-investment-banking/ Learn the differences between Merchant Banking vs Investment Banking, its roles and responsibilities and how each one is related to the capital markets in domestic and global arena

Transcript of Merchant Banking vs Investment Banking - Investment Banking by eduCBA

Page 1: Merchant Banking vs Investment Banking - Investment Banking by eduCBA
Page 2: Merchant Banking vs Investment Banking - Investment Banking by eduCBA

Merchant

Banking

Investment

Banking

Page 3: Merchant Banking vs Investment Banking - Investment Banking by eduCBA

Merchant banks and Investment banks both are the financial institutions that provide different kind of services. However there are some key differences between Merchant bank and Investment bank.

What is meant by Investment Bank?

Firstly we need to understand:

What is meant by Merchant Bank?

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What is meant by Investment Bank?

Investment Bank is a financial institution that helps to government, corporate, HNI (high Net Worth) individual in raising capital. They provide services like:

Research

Raising capital

Merger and acquisition

Sales and Trading

Underwriting

Restructuring

Page 5: Merchant Banking vs Investment Banking - Investment Banking by eduCBA

What is meant by Merchant bank?

Merchant Banking is a combination of Banking and advisory services. It provides advisory services to its clients like:

Project Promotion

Underwriting of securities

Venture Capital

Syndication of Loan

Corporate Counseling

Placement of securities

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Differences between Investment Banks and Merchant Banks

Basis Investment Bank Merchant Bank

Activity Traditional investment banks were engaged in the underwriting of shares and issuance of shares

Merchant banks are well known in international financial activities.

Merger & Acquisition Investment banks assist companies in the acquisition and merges

Traditional Merchant banks not assist companies in the acquisition and merges