Question

Which of the following is a primary difference between investment banking and merchant banking ?

Q: Answer-Which of the following is a primary difference between investment banking and merchant banking?

The primary difference is that investment banks specialize in capital market activities such as underwriting securities , managing IPOs, and trading . Merchant banks , on the other hand, focus on advisory services for smaller businesses and help raise funds mainly through private placements .

A Investment banks deal exclusively with corporate financing, while merchant banks only focus on individual wealth management.

B Investment banks focus on capital markets, while merchant banks focus on business advisory and fundraising for SMEs.

C Merchant banks are restricted to international markets, while investment banks are focused only on domestic markets.

D Investment banks handle M&A advisory for small companies, while merchant banks only focus on equity trading

E There is no major difference between investment and merchant banks as they provide the same services.

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Which of the following is a primary difference between investment banking and merchant banking ?

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