FINANCIAL SERVICES

In many instances, individuals and businesses require certain services to effectively manage their money or resources, whether they want to invest in stocks, buy or sell assets and properties or allocate their finances for future projects.

Because finance and capitalization are complex issues, it is recommended to seek the services of a financial broker when making decisions involving money management. These professionals may either be a stock broker, a business broker or a financial adviser who will help clients make the best possible decision to achieve their financial goals, or gain rewards close to it by using various financial services to meet their client's needs.

Financial services are provided by organizations duly authorized and resource-capable to deliver them. They include insurance companies, mutual fund companies, stock brokerage firms, investment companies, commercial and investment banks, credit card companies, loans companies and government funding agencies, among others. Based on the Standard & Poors 500 report in 2004, financial service companies account for 20% of the market capitalization of leading large cap firms in the United States.

Banks remain as the most popular and available financial service provider. Bank services are classified as Commercial Banking (traditional deposits, time deposits, loans, credit and debit cards, merchant cards or point-of-sale terminals, check guarantees and private banking service for very wealthy clients or families); Investment Banking (bonds, stocks and equities); and Capital Market Banking (debt and equity underwriting, debt restructuring and advisory assistance).

Investment houses come in next, in the form of stock and insurance brokerage and underwriting, asset management, hedge fund management, custody services, private equity investing and venture capitalism, among others.

Some financial service providers are called financial services institutions, especially those who have entered mergers and acquisitions to form one conglomerate, like Citigroup Global Markets, JP Morgan Chase, Credit Suisse First Boston, Merrill Lynch, Morgan Stanley and Goldman Sachs.