2.2.7 LIFE INSURANCE COMPANIES
They issue claims in the form of life insurance and annuity
policies and acquire long-term direct securities such as real estate mortgages
and corporate bonds and notes. Although nearly three fourths of their assets
presently are held in these instruments, the composition of their portfolio has
changed markedly (Foundations of banking, 2005)
2.2.8 CREDIT UNION
Credit union promotes thrift among their members and makes
loans to them mainly for the purchase of consumers' goods such as automobiles.
Credit union issue savings deposit claims against themselves (Foundations of
banking, 2005)
2.2.9 FACTORS
Companies that finance the accounts receivable (not instalment
contract) of the borrowers are important sources of credit for some businesses,
and the factor manage their receivable so that they could recover them
(Foundations of banking, 2005).
2.2.10 SECURITY EXCHANGES
Stock exchange does not distribute new issue but they
facilitate trading in issues already outstanding (Foundations of banking,
2005). These security exchange may be primarily local concerns, dealing mostly
in the stocks of company in the vicinity that rare primarily owned by local
residents. However, security exchange companies are the case with the NYSE (New
York Stock Exchange).
2.2.11 TRUST INSTITUTIONS
They include the trust companies and the trust departments
operated by many banks. The principal function of any trustee is to hold
properly and administer it for the benefit of others (Foundations of
banking).
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