Understanding the Investment Banking Services Offered to Clients

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Investment banking refers to the work done by investment banks. These banks are normally subsidiaries of or associated to other bigger banks. Some investment banks do not accept deposits from the public. Therefore they must find ways of raising capital and earning income to support their daily operations and turn profit.

These banks mainly assist clients in carrying out huge and often complex financial transactions. They earn their profit by charging a commission or fee for every transaction. The banks hire qualified and skilled professionals who serve clients and offer them sound advice. Their ready access to a big pool of investors attracts high demand from investors.

Services Offered by Investment Banks

They help companies and corporations to raise capital by acting as security underwriters. Companies usually raise capital by issuing new securities to the public. This might be an initial Public Offering (IPO) or simply additional issue of securities. These banks purchase the entire securities from the company at a lower price and resell them at a higher price to the public. This is called underwriting.

Banks advice sellers and buyers on various issues during a merger or an acquisition. These are normally complex activities that sometimes become hostile and take a long time to completion. Banks advise both parties on issues like business valuation, pricing, negotiation tactics, structuring transactions and implementing procedures.

They carry out extensive research on trading activities, sales and equity. They then match potential buyers will willing sellers. Sometimes, they buy securities of companies they support in order to facilitate trading of these securities.

They also carry out back office functions like financial control, risk management, corporate treasury and strategy, compliance issues, operations and technology.

About Martin Lustgarten

Martin Lustgarten currently lives in Miami, Florida with his family. He is an investment banker with many years of experience under his belt. Lustgarten, Currently in his 50’s, started his own investment firm called Lustgarten, Martin. He serves as the CEO of the company.

Martin Lustgarten is an avid lover of vintage and collects many beautiful items. In addition, he trades in vintage watches. He is curious in nature and his hobbies include juggling. He is also active on several social media platforms, as well as GoFundMe.