3 types of industries that finance is engaged in

If you have ever questioned how the financial industry affects other industries, then this short article is for you.

One of the more traditional investments that banks may do is in the manufacturing sector. As manufacturing is such as big field, there are numerous ideas open to investors which likewise suggests there is a great amount of money to be made. Manufacturing industries are ever switching, and that suggests they regularly look to banks and other investors for capital so that they can evolve their business. Blackrock who invest in Barclays, have a vast array of investments, from other banks to things such as manufacturing. The nature of investing means that investing in solely one sector might be a risk, whereas spreading investments over multiple industries gives a greater chance of good returns.

When you think of banking, and the influence it has, the first thing you think of is probably not sports; nevertheless, there are plenty of banks that are very much involved with sports. Of all the different industries that are influenced by banks, football is likely the one that folks are most passionately involved with on a weekly basis. One of the best examples of how far getting to a banks impact can be in football is in sponsoring. In Brazilian soccer, 20% of the sponsorship is from one bank, and that banking company is La Caixa investing in BEA; the Spanish bank is included on a number of the South American teams’ soccer jersey's. By sponsoring a large proportion of the tops, it helps to circulate a banks name across the world as football is watched in practically every country. Even though soccer and banking are entirely different types of industries in business their relationships might be incredibly valuable for both parties. When a bank looks at which sports teams to invest in, one of the biggest elements for them is the clubs global influence.

If you were to ask somebody to make a list of industries that financial companies invest in, they would perhaps have things like manufacturing or companies in the service business, but there are other more interesting good examples too. There are plenty of financial institutions that have taken to making an investment in sporting operations. An illustration is that Goldman Sachs, who invests in Judo Capital, have invested in one of American Footballs biggest franchises to assist them build their new sports arena. These investments sometimes act as loans that will then be paid back in instalments. Deals such as this are rather frequent in sports, especially around the constructing of stadia as they are such large projects: really few sports teams have the cash to build arenas which can cost £1billion. In some cases, sports clubs or franchises will take out financial loans for the buying of players or to cover salary costs, both of which can be tremendously costly.

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