Investment banking is a special division of banking that is related to the creation of capital for governments, large corporations, among other entities. The investment banks do underwrite equity securities and new debt for all kinds of corporations, help in selling of securities, assist in facilitating mergers and acquisitions, reorganizing and broker trades for institutional and private investors. The investment banks do assist issuers on matters regarding issue and stock placement.
Investment banks do employ banker to help governments, corporations and other institutions to plan and manage big projects. This saves the time and money of their client through identification of risks that are associated with a project prior to the client commencing work on it. Theoretically, investment bankers possess expertise in their field and are able to analyze the investing climate. This makes businesses and institutions to outsource development plans from investment banks.
Some of the functions that investment banking perform include:
• Investment management
These banks provide investors with advice to manage, trade and purchase various securities and other assets such as mutual funds and hedge funds.
• Mergers and Acquisitions
M&A together with corporate finance involve subscribing the investors to security issuance, negotiating with merger targets, or coordinating with bidders.
• Merchant banking
This is simply a private equity activity.
It reviews firms and writes reports on prospects with sell or buy ratings. Despite the fact that this division generates zero direct revenues, the info produced or gathered by them is helpful in guiding investors and M&A.
Contributions of Martin Lustgarten
Martin Lustgarten has his roots in Austria and Venezuela. He is a popular businessman and CEO and President of Lustgarten Martin. He has actively provided advice on investment banking to various clients, alongside helping them to secure funds.
Martin has utilized his company to assist people in certain places that are facing challenges in getting access to international trade. He helped them take active participation in American trading through offering US dollars in a region that was challenging to come by. Through this style of international support, Martin has helped to enhance global economic system by marketing free options circulation and business prospects. Visit Lustgarten’s Soundcloud page to see what music he’s into.