Merchant bank

A merchant bank is a financial institution providing capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms in which they invest. In the United Kingdom, the historical term "merchant bank" refers to an investment bank.

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.

History

Merchant banks are in fact the original modern banks. These were invented in the Middle Ages by Italian grain merchants. As the Lombardy merchants and bankers grew in stature based on the strength of the Lombard plains cereal crops, many displaced Jews fleeing Spanish persecution were attracted to the trade. They brought with them ancient practices from the Middle and Far East silk routes. Originally intended for the finance of long trading journeys, these methods were applied to finance the production and trading of grain.

Medina

Medina (/məˈdiːnə/; Arabic: المدينة المنورة‎, al-Madīnah al-Munawwarah, "the radiant city"; or المدينة, al-Madīnah, "the city"), also transliterated as Madīnah, is a city in the Hejaz, and the capital of the Al Madinah Region of Saudi Arabia. The city contains al-Masjid an-Nabawi ("the Prophet's Mosque"), which is the burial place of the Islamic prophet Muhammad, and is the second-holiest city in Islam after Mecca.

Medina was Muhammad's destination after his Hijrah from Mecca, and became the capital of a rapidly increasing Muslim Empire, first under Muhammad's leadership, and then under the first four Rashidun caliphs, Abu Bakr, Umar, Uthman, and Ali. It served as the power base of Islam in its first century where the early Muslim community developed. Medina is home to the three oldest mosques, namely the Quba Mosque, al-Masjid an-Nabawi, and Masjid al-Qiblatayn ("the mosque of the two qiblas"). Muslims believe that the chronologically final surahs of the Quran were revealed to Muhammad in Medina, and are called Medinan surahs in contrast to the earlier Meccan surahs.

Medina (disambiguation)

Medina in Saudi Arabia is the second holiest city in Islam.

Medina, Medinah, or Madinah may also refer to:

Places

Antarctica

Colombia

Pakistan

United Kingdom

United States

Medina (surname)

Medina is a surname which may refer to: