Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the difference between the stock exchange and the bank?

user-image
Question added by FATEH BOUCHENE , institut d'emission , banque centrale d'algerie
Date Posted: 2017/06/25

Hi! At a time when traditional banks have strict account opening requirements, Go2bank provides a banking solution for everyone, including those with limited access to banking services or poor credit history. From the numerous reviews here https://go2bank.pissedconsumer.com/review.html it can be concluded that the app offers a flexible and secure way to manage money, regardless of a person's financial situation, thereby promoting financial inclusion and empowering people.

Muhammad Usman Khalil usman
by Muhammad Usman Khalil usman , ACCOUNTS OFFICER , SHABBIR FEED MILLS PVT LTD FOREMLY SHABBIR EDIBLE OIL & FEED MILLS PVT LTD

These are two different pillars of any financial market and comparing them is as if comparing apples and oranges, but still I will try:

Similarities:

  1. You can raise money through both the ways: Banks provide you loan, Stock market will help you in raising equity capital.
  2. Both institutions act as intermediaries between two parties in a money transactions.
  3. In a perfect world both the institutions are very much essential.

Differences:

  1. Banks are controlled by RBI and Stock exchanges are controlled by SEBI
  2. Stock Exchanges are self and market regulating bodies whereas Banks are not a regulating bodies.
  3. Stock exchanges ensures that stock buyer gets stock and stock seller gets the money, they temporarily take the risk. Whereas Banks take entire risk. Because when somebody deposits money Bank is liable to pay the interest similarly when bank lends money the risk is still with the bank.
  4. Bank need Stock exchanges for raising money (Tier-I) capital (I agree not always). Stock exchanges need bank (demat account) to transfer the cash.

Khaliq Raza MBA   MS   CFE  AFA
by Khaliq Raza MBA MS CFE AFA , Senior Accountant , ARCO TURNKEY SOLUTIONS CONTRACTING LLC

  1. Banks are controlled by SBP and Stock exchanges are controlled by SECP
  2. Stock Exchanges are self and market regulating bodies whereas Banks are not a regulating bodies.
  3. Stock exchanges ensures that stock buyer gets stock and stock seller gets the money, they temporarily take the risk. Whereas Banks take entire risk. Because when somebody deposits money Bank is liable to pay the interest similarly when bank lends money the risk is still with the bank.
  4. Bank need Stock exchanges for raising money (Tier-I) capital (I agree not always). Stock exchanges need bank (demat account) to transfer the cash.

Kanva Naimeshkumar Gandhi
by Kanva Naimeshkumar Gandhi , Chief Accountant , Moiz Trading Co. B.S.C.(C)

Partner's Withdrawal A/c-Debit

                     To Bank Account-Credit

Mohamed Lahbali
by Mohamed Lahbali , TRESORIER , CMG/RADISSON BLU MARRAKECH

pour la banque c'est un établissement  de crédit or la bourse c'est un marché d'action /For the bank it is a credit institution or the stock market it is a stock market

Abdul  Basit
by Abdul Basit , Assistant Accountant , Advance Remote( ETISALAT CHANNEL PARTNER)

There are may differences ,both are dealing with financial instruments but banks extends its services to retail and consmer and credit  sector.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.