Investment and Commercial Banking
by Juan
Jan 15, 2022
1 min read
71 words
Table of Contents
A business needs resources for 2 purposes:
- Capital
Capital resources are the fixed assets, machines, equipment, buildings, intellectual property, etc. This is realized by fixed capital.
- Operations
Operational resources are the wages for the employees, supplies, utilities, etc. This is realized by circulating capital.
In the economic system:
- fixed capital is usually addressed by investment banking and venture capitalists through investments
- circulating capital is usually addressed by commercial banking through loans