<u>An investment bank different from a commercial bank because investment banking includes activities like underwriting security issued by the company and providing advisory services on acquisitions and mergers while commercial banking is engaged in activities like taking deposits and granting loans.
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Further Explanation:
Difference between an investment bank and a commercial bank:
Investment bank:
• It includes activities like underwriting security issued by the company and providing advisory services on acquisitions and mergers. They also provide portfolio management services.
• It caters to the need of the common person.
• It is less exposed to risk.
• It is related to the secondary market.
• The account cannot be opened by everyone in investment bank.
Commercial bank:
• It is engaged in activities like taking deposits and granting loans. The charge interest on loans and pay interest on deposits. It also provides ancillary services like locker facility and traveller check.
• It caters to the need of the corporate firms.
• It is more exposed to risk.
• It is related to the primary market.
• Everyone can open an account in the commercial bank.
Learn more:
1. Learn more about the low liquidity bank accounts
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2. Learn more about the traditional saving account
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3. Learn more about the role of money
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Answer details:
Grade: High School
Subject: Business Studies
Chapter: Money and Banking
Keywords: An investment bank, a commercial bank, different from, activities like taking deposits and granting loans, underwriting security issued by the company, the company and providing advisory services.