Nondepository Financial Institution (Noun)
Meaning
A financial institution that funds their investment activities from the sale of securities or insurance.
Classification
Nouns denoting groupings of people or objects.
Examples
- Insurance companies are examples of nondepository financial institutions that provide investment opportunities for individuals and businesses.
- Nondepository financial institutions, such as investment banks, generate revenue through fees and commissions.
- The pension fund is a type of nondepository financial institution that manages and invests the retirement savings of its members.
- Nondepository financial institutions like securities firms facilitate the buying and selling of financial instruments.
- Hedge funds are a type of nondepository financial institution that pools capital from investors to invest in various assets.