The term Merchant Banking has its origin in the trading methods of countries in the late eighteenth and early nineteenth century when trade-taking place was financed by bill of exchange drawn by merchanting houses

Benefits of Market Making

1. 
   Market Makers improve the liquidity for the company stocks. This results in better pricing of shares.
   
2. 
   Better liquidity in the stock help invstors in to selling their holding easily at any point in time.
   
3. 
   Market making encourge new investors to buy the stocks as Market Maker offering assured liquidity.
   
4. 
   Market makers compete among themselves which results in better pricing for investors.
   
5. 
   Market makers also collect and analyze the data about the given stock which helps both investors as well as the company.
   
6. 
   Promoters holding is not eligible to be offered to the market makers.