What is defined as 'merchant banking'?

What is defined as 'merchant banking'?

• A. A type of banking that only focuses on retail customers
• B. A service that provides financial services to individuals
• C. A type of banking that provides financial services to corporations, including investment and advisory
• D. A banking practice centered on government services

Answer: (C)

Merchant banking is defined as a type of banking that provides a range of financial services specifically tailored for corporations. This includes investment services, advisory roles, and the underwriting of debt and equity securities. The emphasis is on assisting businesses with their financial needs, helping them with mergers and acquisitions, raising capital, and offering strategic advice. This specialized focus distinguishes merchant banking from retail banking, which primarily serves individual customers, and other types of banking that might engage with government services or concentrate on personal finance for individuals. The nature of merchant banking allows corporations to access expertise in both financial markets and strategic business planning, making it integral to the operations of larger companies seeking growth or expansion. Therefore, merchant banking plays a vital role in facilitating corporate development and financial sustainability.

Merchant banking is defined as a type of banking that provides a range of financial services specifically tailored for corporations. This includes investment services, advisory roles, and the underwriting of debt and equity securities. The emphasis is on assisting businesses with their financial needs, helping them with mergers and acquisitions, raising capital, and offering strategic advice. This specialized focus distinguishes merchant banking from retail banking, which primarily serves individual customers, and other types of banking that might engage with government services or concentrate on personal finance for individuals.

The nature of merchant banking allows corporations to access expertise in both financial markets and strategic business planning, making it integral to the operations of larger companies seeking growth or expansion. Therefore, merchant banking plays a vital role in facilitating corporate development and financial sustainability.