Financial services provide a variety of ways for individuals and organisations to manage money. They include banks, investment banks, stockbrokers, insurance companies and trust funds, among others.
A bank is a place to put your money but they also lend it out and pay you back plus an interest fee, for example, if you borrow to buy a car or house. They also offer services such as issuing credit cards and cashing checks.
Unlike banks, investment banks focus on helping businesses raise capital. They help them finance their projects through debt and equity transactions, mergers and acquisitions, restructuring and investment management.
A stockbroker is a person who trades stocks, bonds and commodities such as coffee or oil. They buy and sell them at a low price and try to make a profit on the sale.
Investing involves using your savings to purchase assets like stocks or bonds in order to get a higher return. It’s a good way to grow your wealth, but it can also be risky.
The main advantage of investing is that it can be tax-efficient and helps you build wealth over time. This is especially true if you have the right type of portfolio and are willing to take risks.
REGULARLY INVENTING TECHNOLOGY
Technological innovation has dramatically altered the way businesses do business. With computer technology, for instance, a company can pay its employees via direct deposit and access information on their customers more quickly. The ability to do this has enabled many financial service providers to expand their business and cater to a wider range of customers and products.