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While they now have many similar activities, there are still some differences between an investment bank...

While they now have many similar activities, there are still some differences between an investment bank and a commercial bank. What are the two biggest differences? Explain.

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Answer #1

2 Biggest differences between investment and commercial banks

1. Investment banks do not directly receive deposits of public in terms of demand deposits and fixed deposits and receive only from few investors whereas Banks get their funds from deposits by public.
2. Investment banks are involved in IPO, underwriting , mergers and acquisitions , etc . Commercial banks primary purpose is to lend money to business and small retail loans.

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