Merchant Banking Private Equity Groups
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to. In the United Kingdom, the term "merchant bank" refers to an investment bank.
Today, according to the U.S. Federal Deposit Insurance Corporation (acronym FDIC), "the term merchant banking is generally understood to mean negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies." Both commercial banks and investment banks may engage in merchant banking activities. Historically, merchant banks' original purpose was to facilitate and/or finance production and trade of commodities, hence the name "merchant". Few banks today restrict their activities to such a narrow scope.
Read more about Merchant Banking Private Equity Groups: History, Modern Practices, Further Reading, See Also
Famous quotes containing the words merchant, banking, private, equity and/or groups:
“Bid her paint till day of doom,
To this favour she must come.
Bid the merchant gather wealth,
The usurer exact by stealth,
The proud man beat it from his thought,
Yet to this shape all must be brought.”
—Francis Beaumont (1584-1616)
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“Men’s private self-worlds are rather like our geographical world’s seasons, storm, and sun, deserts, oases, mountains and abysses, the endless-seeming plateaus, darkness and light, and always the sowing and the reaping.”
—Faith Baldwin (1893–1978)
“If equity and human natural reason were allowed there would be no law, there would be no lawyers.”
—Christina Stead (1902–1983)
“... until both employers’ and workers’ groups assume responsibility for chastising their own recalcitrant children, they can vainly bay the moon about “ignorant” and “unfair” public criticism. Moreover, their failure to impose voluntarily upon their own groups codes of decency and honor will result in more and more necessity for government control.”
—Mary Barnett Gilson (1877–?)