Understanding the Concept of Investment Banking
Investment banking can be explained by first defining an investment bank and what it does. Ideally, an investment bank is a private institution that is responsible for the provision of various financial related matters and services to businesses, corporations, individuals and sometimes governments. Most of its services are categorized in capital raising ventures. In this process, the investment bank acts as the client’s agent in the issuance of the securities. An investment bank also deals in many other services. It can assist companies and help in the formation of mergers. It can also act as an advisor in the acquisition process. An investment bank also provides services that include, market making, derivatives trading and offering equity securities services. So, investment banking is a process done by investment banks to individuals and organization with the aim of securing funds for them.
In most instances, investment banks act as intermediaries between security issuers and investors. They occasionally help new companies venture into the stock exchange. Usually, they buy the available shares and resell them to the public on behalf of the issuer taking a percentage of each share as commission. However, after the repeal of Glass-Steagal in 1999, the investment banks can now offer commercial banking services.
Martin Lustgarten is an investment banker. He was born in 1959 and has based his operations in Florida. Lustgarten is the chief executive officer at Lustgarten Martin. It is among the best investment banking firms in America. The firm has a proven track record of ensuring profitability for its clients through their resources. He provides his clients with investment management services. With his advice, clients have been able to place their money in securities that generate income. Besides his career in investment banking, Martin is a collector. He is a lover of vintage things with a unique collection of vintage watches.