Investment banking is the first arm of banking that involves itself with generating capital for other companies or even the government among other business ventures. Investment banks do not engage themselves with deposits like commercial banks do. They act as agents to the clients during discharge of securities. Investment banks offer services such as; trading of products, fixed income instruments, currencies and commodities (FICC services), market making and equity securities.
There are two prominent lines of business in investment banking. These are the buy side and the sell side. The buy side is dedicated to giving advice to firms that need to buy investment services while the sell side is involved in the sale of securities either for cash or other bonds. Popular types of buy-side line are life insurance companies and private equity funds while standard sell-side entity includes market-making and research.
Investment banks have been around for a long time now. It has also undergone some changes over the years. What began initially as a partnership with the aim of underwriting issuance of security is now a fully-fledged system with several functions such as propriety training, research, and management of investments. Activities in investment banking can be divided into three; front, middle and back offices according to functions of each. The front office has the responsibility of revenue generation in general.
The middle position is responsible for controlling the treasury and internal strategy and controls. The back office serves the purpose of counterchecking transactions conducted and rectifies where there are errors. For an investment bank to operate correctly, the significant investment must be put in the technology department to ensure normal running of business. They have a variety of investment bankers to assist governments or corporate groups to run larger projects. This is beneficial to customers as the risk in their ventures is minimized by early identification before the project starts.
When one mentions investment banking, one has to say the name of Martin Lustgarten. Born in July 1959, Lustgarten is an experienced man in the investment banking sector. He is the founder of the Lustgarten Martin, an investment bank in which he is the CEO. He is a recognised figure in the industry owing to his many years in the finance industry where he has led his customers to make significant business deals.
Lustgarten is also very active on social media with several social accounts such as Instagram, Twitter, Linked in, and also a SoundCloud account. He is, therefore, easy to access to anyone who needs him.
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