Depending on the values being operated, investment institutions are generally divided into three types:
- Depositary institutions. These are generally regarded as the intermediaries of the investment funds, derived from customers’ deposits.
- Contractual savings institutions. These institutions are engaged in purchasing the funds on a contractual basis and minding the particular purchasing interval.
- Investment intermediaries. Collective investments in various business aspects. These are Finance Companies, Investment Banks, Securities Firms.
The main difference is covered in the aims of investment, and the means of Return on Investment.