How Investment Banking Works

There are several differences between a commercial bank and investment bank. For instance, the investment bank handles with higher financing and assists firms to earn a profit in efforts to accelerate their growth, another difference is that investment bank raises debt for companies through giving of bonds and other financial instruments. In short, this is an organization that assists businesses as well as individuals and government to raise funds through performing the agent role of their client in giving securities.

Investment banking may also consist of acquisitions as well as mergers that are also managed and done by the investment bank acting as an agent for the companies involved. In this case, the investment bank may provide supplementary services such as trading of securities as well as derivatives, market making and transfer of fixed income instruments.

The difference between the retail banking and investment banking is that there are no deposits taken. That has been the case for consumer protection the separation between the two types of banking.

Prior to starting a sale or buy in the securities market, it is important to conduct research to review the firms so that to produce reports showing their prospects in details. There are many professionals in the investment industry who can conduct research, for instance, Martin Lustgarten. He is qualified enough to look into several industries prior to giving a final report for decision making. The research is also aimed at the stakeholders who are outside the bank to give the necessary advice to the potential investors, this goes a long way to preventing bad loss which can lead to a bad reputation for the concerned company.

Martin Lustgarten takes advantage of his citizenship so that he could easily assist several clients in different markets. He is well-recognized professional in financial analysis and has been providing help to the investors in making informed decisions. Dues to his esteem in the investment baking he has been influential in the industry because of his keen eye to give accurate advice and prediction

Lustgarten has the capability of identifying trends due to intelligence. He has been seen as a role model that many investors have gained benefits as a result of his effort, which has also helped him grow wealth. His skills have enabled him to grow a successful portfolio.