What are the differences between commercial banking, investment
banking and hedge funds? Describe their main functions...
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Finance
What are the differences between commercial banking, investmentbanking and hedge funds? Describe their main functions and brieflyexplain the way their balance sheets differ from each other. Lastlyexplain the regulatory framework that applies to each one of thesedifferent types of financial institutions.
500-700 words.
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Commercial banking deals with the service provided by financial intermediaries such as banks for the purpose of receiving deposits and providing the interest for the deposits that have been accepted by the bank and lending money to people and organizations that are in need of funds and thereby charging them interest for the amount that they had borrowed Whereas Investment banking deals with assisting large organizations or establishments manage their funds by providing them services such as assisting them in creation of capital when the company is going public IPO Initial Public Offer or sell debt security instruments such as bonds or debentures when they want to
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