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Financial Services Industry Basics

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The financial services industry plays a vital intermediary role in the world economy, moving funds from entities with excess funds to those with a need for funds. It includes firms that are engaged in activities such as investing, lending, insurance, securities trading and securities issuance. Its clients are individuals, businesses, nonprofit organizations and agencies of government.
Bank deposits provide the capital for bank loans.
The sale of stocks and bonds to investors supports the operations of businesses and governments. Insurance contracts help to pool and manage risks.
This is not an exhaustive list, but the financial services industry encompasses companies in one or more of the following lines of business.

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