Insurance companies.

2. were originally cre­ated by groups (such as trade unions and religious groups) who pooled their resources to provide some financial protection for members and families should the member become disabled or die.

3. ac­cept premium payments from policyholders and provide various types of protection.

4. use the funds generated through premium payments to provide long-term loans to corporations, to pro­vide commercial real estate loans, and to purchase government bonds

Pension funds.

1. can be set up by a company, union or nonprofit organization to provide for the retirement needs of its members or employees. To meet these needs, the fund uses a pool of money created by contributions of the members, the employer or both.

2. invest these funds in long-term mortgages on commercial prop­erty, business loans, government bonds, and common stock in major firms.

3. typically invest a por­tion of the fund in the company's own stock.

4. state, local, and federal governments have set up pension funds for their employees.

Large brokerage houses.

1. buy and sell stocks, bonds, and other assets for their customers.

2. they have also started to provide other financial services.

Commercial and consumer finance companies.

1. acquire funds by issuing com­mercial paper (large corporate promissory notes) or stocks and bonds.

2. use the funds to make loans appropriate to consumer and business needs.

3. typi­cally charge a higher rate of interest because of the higher risk of the loans that they make.

4. also frequently require some sort of collateral for loans.

5. get the money they lend by selling bonds in their corporation and through loans from other corporations.