What is Merchant Banking or Merchant Capital - Meridian Business Television Episode 8 http://meridianbusiness.tv/?pid=13 On this edition of MBTV host Randy Len...
Today, according to the U.S. Federal Deposit Insurance Corporation (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.
Also known as: Merchant Bank Capital, Merchant Capital