Finance company vital role in investment intermediaries, Financial Management

Assignment Help:

How is the finance company play a vital role in investment intermediaries?

Finance companies:

Finance companies make loans to corporations and individuals by giving consumer lending, mortgage financing and business lending. Some of their loans are same to those given by commercial banks.

Nonetheless, finance companies are different from commercial banks since they do not accept deposits. They increase funds by selling commercial paper (i.e., a short-term debt instrument) and by giving stocks and bonds. Furthermore, finance companies frequently lend to customers perceived as more risky by commercial banks.


Related Discussions:- Finance company vital role in investment intermediaries

Define compensating balances, What are compensating balances and why do ban...

What are compensating balances and why do banks require them from some customers?  Under what circumstances would banks be most likely to impose compensating balances? Compensati

Importance of the cost of capital, Q. Importance of the Cost of Capital? ...

Q. Importance of the Cost of Capital? Importance of the Cost of Capital:- (1) Useful in Designing the Capital Structure: - The perception of cost of capital plays a very imp

Marginal weighting system, uses and limitations of the marginal weighting s...

uses and limitations of the marginal weighting system

What are classes of institutions that issue bonds in the usa, What are the ...

What are the main classes of institutions that issue bonds in the USA? There are three major classes of institutions which issue bonds in the USA: national governments, local g

Contemporary issues, What are the social and contemporary issues in financi...

What are the social and contemporary issues in financial management?

Advantages and the disadvantages of a new stock issue, What are the advanta...

What are the advantages and the disadvantages of a new stock issue? A new stock issue increases funds and decreases the riskiness of the firm.  It as well tends to send a negat

How do risk-averse investors compensate for risk, How do risk-averse invest...

How do risk-averse investors compensate for risk when they take on investment projects? Due to the risk aversion, people demand higher rates of return for taking on higher-risk p

Securities and exchange commission (sec), SEC is the Regulatory body for...

SEC is the Regulatory body for investor protection in the United States which is created through the Securities Exchange Act of 1934.

Finance Homeork question/quote, The management of Border Bank has asked you...

The management of Border Bank has asked you to help with it with its market risk calculations. It has compiled the following data on its financial assets: • $500 million of amorti

Explain the asset substitution effect, Question: a. Explain what the de...

Question: a. Explain what the debt overhang problem is (following the lines of Myers 1977) make sure that you specify what the relevant conflict of interest is and what are the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd