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Institution
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An organization which is in the business of holding assets.
Examples of institutions include banks, insurance companies, and investment companies. Investment companies invest the pooled funds of retail investors for a fee. By aggregating the funds of a large number of small investors into a specific investments (in line with the objectives of the investors), an investment company gives individual investors access to a wider Range of securities than the investors themselves would have been able to access.
A bank is an organization, usually a Corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays Interest on them; discounts Notes, makes loans, and invests in securities; collects checks, drafts, and Notes; certifies depositor's checks; and issues drafts and cashier's checks. An insurance company , usually a Corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays Interest on them; discounts Notes, makes loans, and invests in securities; collects checks, drafts, and Notes; certifies depositor's checks; and issues drafts and cashier's checks.
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Privatebanking.com
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