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Banking Term: Merchant Banking

Find important banking term that is useful in upcoming banking exam.

Apr 16, 2015 03:56 IST
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Merchant banking is a private equity activity of investment banks. In merchant banking, a financial institution is primarily engaged in offering financial service and advice to corporations and to wealthy individuals.

The main distinction between an investment banks invests its own capital in a client company whereas an investment banks purely distributes the securities of that company in its capital raising role

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