Investment banking as the name suggests is a branch under the banking industry which helps people, organizations, companies and governments invest their money to raise more capital. Investment banks are quite popular because of the services they offer.
Unlike commercial banking, investment banking does not take the clients money and deposit it safely, rather it benefits from taking risks. Investment banks raise their capital through selling of securities and giving of investment advice.
The services offered by investment banks can simply be classified into two categories. One department involves giving of informed advice to companies and entrepreneurs who want to invest their money in stock markets. The second category includes managing of money and accounts of other firms or companies to sell securities. They participate in acquisition of properties, determine value of companies and help in merging companies.
Most investment firms or banks have a front office that deals with giving advice and conducting market research. The middle office then deals with management of risks while the back office deals with the other operations.
Investment banking is quite tricky and involves taking great risks. Failure to have well researched information for clients and poor strategies leads to automatic failure. Taking of reckless risk led to the major financial crisis in 2008. This led to clients being keener on only taking well calculated risks. The investment banker must be able to study markets, make correct predictions and understand consequences of events. In this field, the more successful an investment banker is, the more their reputation and clientele grows. One of the top most recommended investment bankers is Martin Lustgarten.
Martin Lustgarten’s impact on investment banking
Martin Lustgarten has earned his reputation in the world of investment banking through mentoring of successful investment bankers and delivering of individualized services to his client. His work has consistently produced financially successful outcomes. He established a culture around investment banking where interest of clients is put first before acquisition of profit.
With his vast experience and skills, Martin started Lustgarten Martin invest banking firm that is based in Florida. He is the CEO and the firm has the reputation of pulling successful deals and is a top most sought firm.