A merchant bank is a company that conducts underwriting, loan services, financial advising, and fundraising services for large corporations and high net worth individuals.
They do not provide regular banking services like checking accounts and do not take deposits.
What is the role of a merchant banker?
Facilitate primary market activities by their advice and guidance. Merchant bankers are in charge of the issue process. They act as intermediaries between the company and the investors. They are also responsible for preparing the prospectus and marketing the issue.
What services are provided by merchant bankers?
The services provided by Merchant Bankers include:
- Project counseling.
- Market survey and forecasting.
- Estimating the amount of funds required.
- Raising funds from capital market.
- Raising of funds through new instruments.
- Bought out deals.
- OTC market operations.
- Mergers and amalgamations.
What is Merchant Banking in simple words?
From Wikipedia, the free encyclopedia. Merchant banking is a combination of banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters. Consultancy means to provide advice, guidance and service. It helps a business person to start a business.
Are investment bankers and merchant bankers the same?
Merchant Bank implies a banking institution, that fulfills capital requirements of the companies in the form of share ownership, rather than granting loans. Investment Banks are the middleman between the issuer of securities and the investing public, and also provides various financial services to the clients.