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Question 1-6B

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Essentials Of Investments
Found in: Page 23
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

Short Answer

How does investment banking differ from commercial banking?

Investment banking deals in the sale of security

Commercial banks deal with money such as making payment, lending or deposits.

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Step by Step Solution

Definition

Investment banking is a firm which deals in the sale of security while commercial banks specialize in accepting money, making payment, lending or deposits.

Differences

Difference between Investment Banking and Commercial Banking

Investment Banking

Commercial Banking

1. These are modern day financial institutions

1. These are the traditional bank holding companies.

2. These firms specialize in the sale of new securities to the public.

2. These companies process the transaction of business.

3. They offer their services such as underwriting issues, brokerage etc.

3. They offer their services such as accepting money, making payment, lending or deposits etc.

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