City's Main Players

The most important role of the City is to channel money available for investment into companies. Companies can then use this finance to grow and generate more profit, which can then be re-invested. Four main groups operate in the City:

Companies and Governments
Companies are the main customers in the City however other significant customers include public sector institutions and central and local government. They come to the City to raise capital (money).

Banks provide advice to companies and other institutions and help them to raise the funds they need to become more profitable. They provide loans, underwrite and issue new securities (bonds and shares) and advise clients during company mergers and takeovers. Banks also make money by trading securities. Sometimes this is on behalf of clients and sometimes for the bank itself.

Brokers help make deals and are the City's middle men. Their job is to arrange transactions between buyers and sellers. Brokers specialise in areas such as commodities, insurance and stocks. Many work directly for large investment banks. They arrange deals for the bank's customers and find prospective buyers during issues of stocks and bonds.

Institutional Investors
Institutional investors are also one of the City's main customers. They make financial markets possible, as they invest money that has been paid into insurance policies, savings funds and pensions.