Students who are doing courses on finance have to study various topics. One among them is corporate finance. They also have to do homework on this subject. But sometimes they cannot understand certain topics due to which they look for corporate finance homework help.
Among the different topics that students have to study and do their homework, one is studying about the different financial institutes and their roles. Sometimes, they cannot properly understand this topic because the matter is presented to them in a complicated way. Thus, they seek for corporate finance homework help.
Here is a brief summary of various financial institutes and their roles.
- Commercial Banks: These financial institutes provide security and convenience to people. They also accept monetary deposits in different forms and keeps money safe. Commercial banks also provide loan facilities. Through this, the kind of banks makes more funds by lending the money at higher interest rates.
Commercial banks also act as payment agents whether amongst the nations or a country. These banks issue debit cards, arrange fund transfer, etc. Commercial banks make business convenient to a great extent. Thus, people do not have to carry money with them for purchasing anything or making any transactions.
- Insurance Companies: These are another type of financial institutes who collect premiums from people. Through this, people can save them from anything fatal like loss of a person, fire accident, critical illness, any kind of accident, etc. Insurance companies help companies too. They preserve wealth and manage any risk.
Insurance companies make a lot of profit from this. But they have to pay the claims that come up at the same time. These companies use statistical analysis to calculate and know what their actual losses are within a given period of time. Insurance companies calculate this because they know that everyone will not face a crisis at the same time.
- Brokerage companies: Another type of financial institution is brokerage companies. They act as middle-men between sellers and buyers. They help with the securities transaction. They earn through the commission that they get after a successful transaction. These are commonly known as brokerage charges.
Brokerage companies can either provide a full service or act as discount brokers. The former one provides portfolio management, investment advice, trade execution, etc. The latter one only help in the investment because clients make their own research and make decisions. The brokerage fee is also less here.
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