80 likes | 94 Views
An Investment bank is a specific division which is mainly involved in the creation of capital on behalf of individuals, corporations, and governments. Investment banks perform a major role as the provision on the present and future, and financial consumption is needed across various corporations and firms.
E N D
How Do Investment Banking Companies In India Help The Economy? An Investment bank is the specific division which is mainly involved in the creation of capital on behalf of individuals, corporations, and governments. Investment banks perform a major role as the provision on the present and future, and financial consumption is needed across various corporations and firms.
An investment banking company is the one that helps in the transactions of the banking business. Economies and business are solely depended upon the supply and demand. Money is required for the establishment of the firm, irrespective of their background and skills. India is land with a diversified financial sector that is currently undergoing rapid expansion. Investment banking companies are providing the facility for the conversion of assets in the form of cash.
Investment bank acts as a bridge between the large enterprises and the investor. Bank plays a major role in the creation of the new capital by lending money to the manufacturers for the purchase of raw materials and to meet other requirements in a country thereby helping in the economic growth process and investment securities.
In India, the banking sectors are sufficiently capitalized and very well regulated, so the economic condition of India is superior to any other country in the world. India's banking system is not only restricted to the metropolitan cities but had reached every corner of India, be it the cities or villages, leading in the development of that region.
The evaluation and determining the stock price is one of the many jobs of the Investment banks. Also, they have the ability to handle any merger and acquisitions. The main function of the investment bank is to evaluate the worth of a possible acquisition and arrive at a fair price compatible for both the groups. Investment banks can, therefore, can help assist structure and facilitate the acquisition deal to go smoothly.
Investment banks along with commercial banks help in determining prevailing market interest rates. Interest rates market helps determine how profitable it is to save and how expensive it is to borrow thereby helping in the coordination of resource utilization at the time of need. Original Source: https://bit.ly/2mhZBOh