Investment banking is a special banking operation whose role is to help organizations and individuals to raise venture capital. In addition, financial consultancy services are provided by these institutions to ensure that investments made have a high potential for profit. Investment banks similarly act as a bridge that connects investors to security issuers whenever private firms go public. They may either purchase the available shares and resell them, or sell the shares for the issuer. Either way, they receive a commission.
Investment banking has greatly evolved over the years. However, it remains one of the most intricate financial mechanisms. These institutions provide a wide array of financial services. These may include proprietary trading, mergers and acquisitions, and leverage financing. There are institutions that are involved in business restructuring in a bid to make business operations more efficient. When it comes to mergers and acquisition transactions, investment banks advice sellers and buyers on matters related to negotiation, business valuation, structuring of transactions, and pricing.
In the past, investment banks were barred from offering commercial and retail banking services. With the abolishment of the Glass-Steagall act in 1999, these institutions were allowed to offer these services. “Back office” roles of investment banks include financial control, risk management, corporate treasury, compliance, corporate strategy, and operations and technology. These services are considered to bear a high degree of financial risk.
About Martin Lustgarten
Mr. Lustgarten ranks among the most successful entrepreneurs in America. The Florida native has worked in the money markets for more than twenty years, all of which have been successful. His firm, Lustgarten Martin is a prolific investment bank in Miami. He is the firm’s Chief Executive Officer. Martin’s connections have helped established the firm as the go-to investment bank in the US.
Martin’s success has greatly been reliant on diversification. He believes that this is the best way to prevent severe losses in the event of market upheavals. He has diverse commercial interests in countries such as Hong Kong, Panama, Singapore, and Venezuela. Martin also offers sound financial advice through his social media pages, where he has a solid following. Being a lover of vintage items such as cars and watches, he collects, reconditions and sells them.