Merchant banks deal with funds raised through?
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A Merchant Bank is a form of bank that deals with international finance, loans for expansion and start up of businesses. A Merchant Bank is significantly known for its aid in international trade. Through a merchant bank, a multinational company can deal its transactions. The money exchange etc is dealt by this form of bank.
A Merchant Bank supports new startups which cannot raise their funds through public financing. A Merchant Bank deals with the funds raised by sale of private securities. These securities belong to small selective investors which include; large banks, mutual funds, insurance companies and pension funds.
A Merchant Bank supports new startups which cannot raise their funds through public financing. A Merchant Bank deals with the funds raised by sale of private securities. These securities belong to small selective investors which include; large banks, mutual funds, insurance companies and pension funds.
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Answer:
A merchant bank is a company that conducts;
-Loan services
- Financial advising
- Fundraising services for large corporations and high net worth individuals.
Unlike other banks it does not offer services to the general public.
Explanation:
Unlike other banks, merchant bank uses more creative forms of financing.
Typically, they work with companies that may not be large enough to raise funds from the public through the initial public offerings (IPOs).
Merchant bank invests directly in the clients’ businesses as one way of raising funds.
On the other hand, merchant bank makes money through fees they charge their big clients for providing financial services and consultation. This is also one and the main way how merchant raise their funds.
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