Economy, asked by bhuvisinghal13, 4 days ago

6) write a note on the mechanism of a bank?​

Answers

Answered by ShreyashJain34
0

Answer:

Definition of 'Investment Banking'

Definition: Investment banking is a special segment of banking operation that helps individuals or organisations raise capital and provide financial consultancy services to them.

They act as intermediaries between security issuers and investors and help new firms to go public. They either buy all the available shares at a price estimated by their experts and resell them to public or sell shares on behalf of the issuer and take commission on each share.

Description: Investment banking is among the most complex financial mechanisms in the world. They serve many different purposes and business entities. They provide various types of financial services, such as proprietary trading or trading securities for their own accounts, mergers and acquisitions advisory which involves helping organisations in M&As,; leveraged finance that involves lending money to firms to purchase assets and settle acquisitions, restructuring that involves improving structures of companies to make a business more efficient and help it make maximum profit, and new issues or IPOs, where these banks help new firms go public.

Explanation:

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Answered by presentmoment
0

The mechanism of a bank is very defined and planned in a way so that the customers get the service and the banks earn their profits.

Explanation:

  • Banks have a very organized and defined way of functioning.
  • The banks allow their customers to deposit their savings as well as funds with them.
  • These funds allow the banks to lend loans to other customers.
  • The banks charge a higher rate of interest on loans and offer a rate of interest that is comparatively lower on savings.
  • This way, the banks are able to serve their customers as well as get some profits for their functioning.
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