Investment banks are more about stocks (equity). They help companies and individuals buy/sell stock/bonds/derivatives with each other (stock offerings, bond sales, Mergers & Acquisition, stock accounts and so on). So customers hold these things (paper/securities) that can be turned into cash through trades, but aren't cash themselves (thus there's more volatility/risk). Because customers are accepting more risk (the paper is more volatile than cash), they get much higher returns than traditional banking. (This is what most people think of as Wall St. or eTrade) | Investment banks are more about stocks (equity). They help companies and individuals buy/sell stock/bonds/derivatives with each other (stock offerings, bond sales, Mergers & Acquisition, stock accounts and so on). So customers hold these things (paper/securities) that can be turned into cash through trades, but aren't cash themselves (thus there's more volatility/risk). Because customers are accepting more risk (the paper is more volatile than cash), they get much higher returns than traditional banking. (This is what most people think of as Wall St. or eTrade) |
~ Aristotle Sabouni
Created: 2022-03-11
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Terms
We need to agree on what terms mean. This used to be easy, before SJW's/Marxists started Orwelling our language.
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Financial Terms
These are a bunch of financial terms (concepts really), that you can scan to get familiar with the jargon and ideas.
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🔗 Links
https://mises.org/library/separation-commercial-and-investment-banking-morgans-vs-rockefellers
Tags: Terms Financial Terms
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