A Brief Outline on Investment Banking From Martin Lustgarten
Investment banking primarily involves acting on behalf of particular institution or relevant governmental institution in the aspect of raising funds. Raising capital for institutions and companies may involve different methods the path taken by investment banks is to underwrite securities. Investment banks partake to look for investors so as to ensure that a particular institution receives necessary capital while taking the risk of issuing certificates. Issuance of certificates is done during public offerings hence investment banking involves the issuance of a company security certificates to targeted investors. The investors in turn provide money which is converted to capital and pumped into the institution seeking capital. The plot line of global investment banks has been rapidly increasing and it is evident that many companies and governments are relying on investment banking to raise capital.
Investment banking is divided into various branches but there are two main divisions that oversee the investment portfolio. These are the sell side and buy side. This branches are the ones that are mostly concerned with the buying and selling of securities in public offerings. The buy said mostly deals with advisory opinion to potential investors advising on viable projects while the sell side mostly deals with the actual selling of securities. This branches must be kept separate and distinct in order to facilitate smooth and transparent security transactions.
Investment banking also involves the facilitation of mergers and acquisitions. After merging companies seize to exist it needs a marketing derivative that will enable it acquire desired market. Investment banking plays a big role in reshaping this companies and molding them back to profitability. Currently JP Morgan and Co is the biggest investment bank in the world with billions of dollars injected in various sectors of the economy.
Martin Lustgarten is an investment banker who moved from formal employment to start his own private investment firm. He is an avid and experienced risk calculator who has constantly weighed risks and the expected returns.
Lustgarten has an excellent investment mind that has constantly enabled him to accurately calculate numbers while dealing with clients. Unlike many investment bankers he has a good command of verbal and written English which facilitates effective communication between clients. His Vimeo account shows the he is a strict follower of the business code of conduct and believes in transparency. Check out the fundraiser he’s involved with through Gofundme.