Investment banking, as the name would suggest, is a branch of banking in which the investment banks primarily deal with selling securities and underwriting new equity shares used in raising capital funds. Investment banks are different from commercial banks as they do not take deposits or issue commercial loans.
For companies looking to issue securities, investment banks act as intermediaries between the companies and those willing to buy the securities. The banks operate along the side. On the side, the operations undertaken include portfolio management and securities trading. On the “sell” side, the banks are involved in underwriting new stock lines, publishing financial research and marketing financial products.
Regulation is very vital when dealing with investment banks. Since the institutions operate on both sides, the buy side and the sell side, conflict is bound to arise between the buying and selling operations. The role of regulation is left to agencies such as the SEC.
Another role that investment banks play is the advisory role. Investment banks offer advice to companies that are seeking mergers, acquisitions and a wide array of fund raising strategies. Few investment banks have gone on to become industry leaders. Among them are Goldman Sachs, which is the largest, Deutsche Bank, Morgan Stanley, Bank of Merrill Lynch, and JP Morgan Chase. Among the clients served by investment banks are companies, financial institutions, governments, foundations among others.
A notable figure in the world of investment banking is Martin Lustgarten. Lustgarten is an experienced investment banker and has over the years gained a wealth of experience in the securities and equity markets. Lustgarten, Martin is an investment banking firm that is sought-after by many investors as it uses the vast experience of its investment bankers to ensure their clients get the best services.
Martin Lustgarten is an effective leader as well as an effective communicator. This has placed him in an excellent position to create cordial relationships with his clients while earning their trust at the same time. He continues to make a vast contribution to the banking industry to date.
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