Capital is undeniably needed in order to propel ideas out into the market. Arguably, what determines the fate of a big idea is whether or not there is capital that can back it up.
This dependence on capital is not unique to businesses that are just starting — even huge companies need it in order to keep their operations going.
The time value of money
Obtaining capital from investors makes it easier for companies to gain the liquidity they need. In exchange for funding companies, investors get to share with the profits.
In this period of accelerated innovation, investing has become only more important. Consequently, it has also become an even more attractive venture for investors who want to take advantage of the time value of money.
The giants
In the midst of all these are investment firms, who on the behalf of investors, use their skills, expertise, and tools to invest in companies that will hopefully reap massive profits for investors to share.
Given the inherently volatile nature of the market, having the wisdom of established investment firms on one’s side will alleviate some of the anxiety on the possibility of losing money. Knowing this, it is not hard to see why investment firms are among the giants in the corporate world today.
Which investment firms in the world today are the largest? Statista collected information from multiple reputable sources and made the list for us:
Fidelity Investments tops the list. Currently, the company is holding assets with a total worth of US$ 8.30 trillion.
A staggering number, needless to say. Yet its dominance in the investment world is even more pronounced when compared to the company in second place, Charles Schwab. This investment company holds US$ 4.05 trillion in assets. This is by no means a small figure. When put next to Fidelity, however, it is completely dwarfed.
In third place is Morgan Stanley, now worth $ 3.10 trillion, taking into account its recently announced acquisition of E-Trade in a $13 B deal last February. This was referred to by The New York Times as the biggest takeover by a major American lender since the Great Recession. With this acquisition, Morgan Stanley is quickly catching up to Fidelity and Charles Schwab.
Next up is Wells Fargo, worth $1.60 trillion in managed assets. Meanwhile, TD Ameritrade is 5th, with assets amounting to $1.32 trillion.
It should be recalled that Charles Schwab announced last year its plan to acquire TD, though this is still under pending regulatory approval.
There have been concerns that this merger of the two rival companies will reduce market competition. It will also narrow down the options for the investors.
Lastly, we have Edward Jones in sixth place, now worth $ 0.91 trillion.
Moving forward, we can only expect these companies to continue their expansion, given their central role in the materialization of the revolutionary innovations that are shaking up the way things work in this world of ours.
