What are the differences between commercial banking, investment banking and hedge funds? Describe their main functions...

60.1K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert

4.1 Ratings (775 Votes)

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 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member