BANKING AFFAIRS

Detailed explanation-1: -Merchant banks are neither merchants nor banks. In fact, when the merchants started financing foreign trade, they came to be known as merchant banks, as they were the first to provide such services in the world.

Detailed explanation-2: -Merchant banker is a person who provides assistance for the subscription of securities. The merchant banker plays an important role and carries a lot of responsibilities like, private placement of securities, managing public issue of securities, stock broking, international financial advisory services, etc.

Detailed explanation-3: -Merchant Banking and Financial Services-Topic Wise Multiple Choice Questions (MCQ) A merchant bank is a financial institution conducting money market activities and: Lending. Underwriting and financial advice. Investment service.

Detailed explanation-4: -A merchant bank is historically a bank dealing in commercial loans and investment. In modern British usage it is the same as an investment bank.

Detailed explanation-5: -Commercial banks serve both businesses and individuals, while merchant banks work only with businesses. And rather than lending money to companies like a commercial bank, merchant banks instead often invest in the companies for a share of the ownership.