Corporate finance homework help: 4 different financial institutes and their roles
by Jordan Wilson Academic WriterStudents who are doing courses on finance have to study
various topics. One among them is corporate finance. They also have to do
homework on this subject. But sometimes they cannot understand certain topics
due to which they look for corporate
finance homework help.
Among the different topics that students have to study and do
their homework, one is studying about the different financial institutes and
their roles. Sometimes, they cannot properly understand this topic because the
matter is presented to them in a complicated way. Thus, they seek for corporate finance homework help.
Here is a brief summary of various financial institutes and
their roles.
·
Commercial Banks: These financial institutes provide security
and convenience to people. They also accept monetary deposits in different
forms and keeps money safe. Commercial banks also provide loan facilities. Through
this, the kind of banks makes more funds by lending the money at higher
interest rates.
Commercial banks also act as payment agents
whether amongst the nations or a country. These banks issue debit cards,
arrange fund transfer, etc. Commercial banks make business convenient to a
great extent. Thus, people do not have to carry money with them for purchasing
anything or making any transactions.
·
Insurance Companies: These are another type of financial
institutes who collect premiums from people. Through this, people can save them
from anything fatal like loss of a person, fire accident, critical illness, any
kind of accident, etc. Insurance companies help companies too. They preserve
wealth and manage any risk.
Insurance companies make a lot of profit from
this. But they have to pay the claims that come up at the same time. These
companies use statistical analysis to calculate and know what their actual
losses are within a given period of time. Insurance companies calculate this
because they know that everyone will not face a crisis at the same time.
·
Brokerage companies: Another type of financial institution is
brokerage companies. They act as middle-men between sellers and buyers. They
help with the securities transaction. They earn through the commission that
they get after a successful transaction. These are commonly known as brokerage
charges.
Brokerage companies can either provide a full
service or act as discount brokers. The former one provides portfolio
management, investment advice, trade execution, etc. The latter one only help
in the investment because clients make their own research and make decisions.
The brokerage fee is also less here.
·
Investment banks: Financial institutions that are called
investment banks differ a lot from commercial banks. Investment banks provide a
variety of service for the governments and other businesses. The services often
include equity offerings, help corporate reorganizations, underwriting debt, financial
advice, etc.
However, investment banks have fewer
regulations in introducing new products and other things compared to other
commercial banks. These institutes are mainly based on public and share
offerings. Though this kind of banks do not deal with the public, there are few
who also act as a commercial bank to help people.
These are few financial institutes that students have to
study about when they are specializing in corporate finance. There are many
more on this list. Students have to understand what roles do they play and what
their everyday functions are. Only they can be successful in their job roles.
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Created on Jul 2nd 2018 05:35. Viewed 500 times.