Investment banking is a process where investment banks work as middle persons between investors and a company to help the company issue stocks or bonds. The investment bank offers support in pricing to maximize revenue. It also offers regulatory requirements to help streamline the process. Additionally, an investment bank may come in to assist a company to initiate mergers and acquisitions and also provides ancillary services as well as fixed income instruments. Investment banks do not operate like commercial banks in the sense that investment banks do not facilitate deposits.
In the U.S., investment banks and commercial banks separated through the 1999 Glass-Steagall Act, which repealed to have more universal banks offering a wider variety of services. Therefore, many commercial banks have come up with investment banking divisions through hiring and acquisitions. Some of the banks that hold investment banks include JPMorgan Chase, UBS Barclays, Wells Fargo, Bank of America and Credit Suisse.
Investment banking activities
The front office role of an investment bank includes the revenue generating activities the institution handles. This includes mergers and acquisitions as well as tabling advice that may help in making profitable decisions.
Corporate finance is also an aspect that investment banks handle, which includes working with consumers to help them raise funds in stock markets. The bank also offers advice about mergers and acquisitions and this may involve coordinating bidders and negotiating the merger with the two parties.
Martin Lustgarten is an investment banker with more than ten years experience working for different companies. He has helped many clients achieve their goals and his zeal to reach more people forced him to leverage his citizenship.
Martin works hard to mentor young and upcoming entrepreneurs in the industry. His mentor-ship role has been useful in assisting many professionals launch businesses that have grown into internationally recognized enterprises. Martin is especially well versed with business analytic and offers advice to help investors to make profitable decisions in the stock market.