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



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18MB0408T - Unit II
Other Important Factors: Other important factors which influence selection of a project include outlook of the: investors generally towards other companies operating in similar industries which are already listed and towards the group in particular. Investor’s response to previous Public Issues of similar companies will also have a bearing on the decisions to come out with a Public Issue. Dividend payment schedule of the Company and its associate concerns should also be considered. From the point of view of Merchant Banker, the cost benefit analysis is also important before accepting assignment of issue management

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