Investment banking is a division of banking that is related to creation of capital. Banks assist individuals, corporations and governments to raise financial capital. Investment banking also involves the process of underwriting new debts and equity securities. It is also associated with issuance of financial securities, facilitating mergers and acquisitions and aiding in the sale and trading of securities. It provides guidance to issuers on placement and issue of stock.
Investments banks are usually associated with or are subsidiaries of large banking institutions. They assist in large and complicated financial transactions. What investment banks do is that they employ investment bankers who are given the responsibility of assisting corporations, governments, pension funds, hedge funds and other organizations plan and manage large projects that require a lot of finances. Investment banks will give advice on how to structure a deal depending on the client’s preferences. This may be either acquisition, merger or sale.
Whenever a company wants to issue stocks or bonds. Investment banks act as the middlemen between the company and the potential investors. Investment banks price financial instruments in order to maximize revenue taking into account regulatory requirements. When a company is holding its initial public offering, an investment bank will usually buy all of the company’s shares and sell them on the market at a price higher than it bought them thus making profit. Hence investment banks have well experienced analysts who are able to accurately price the stock in the best way possible.
Martin Lustgarten is the founder and CEO of Lustgarten, Martin which is an investment banking firm in Florida. He has handled businesses with large banks at Florida and United States. He has been in investment banking https://martinlustgarten.wordpress.com/ for some period of time that has helped him gain vast experience in exchange of security and equity trades.
Martin understands the importance of treating clients the right way and as such he is active on all his social media accounts. This makes him approachable and fun to work with. He has a passion for investment banking and rarely goes wrong whenever he invests with banks.