Deciphering the Operations and Functions of Investment Banking

Investment banking entails a category of financial services provided by investment banks. This type of banking services mainly focuses on underwriting the issuance of shares and selling of securities in a bid to raise capital for companies. On the other hand, commercial banking specializes in deposits as well as commercial loans.

Buy and Sell Side

Investment banks act as mediators between buyers and companies issuing their securities. This means that investment banking functions under two lines of business including the buy side and the sell side. Sell-side functions entail marketing financial products, publishing financial research and underwriting new lines of stock. Alternatively, the buy-side operations include activities like portfolio management and securities trading.

The regulations governing investment banking are necessary since investment banks operate on both the sell and buy side. The regulations are put in place to prevent the operations on either side from interacting leading to ethics violations or unfair market practices.

Investment Banking Activities

Investment banking activities are split into the front, middle and back office. The front office functions or activities are associated with revenue generation. This category of activities includes markets and investment banking. The middle office constitutes of internal corporate strategy, internal controls and treasury management operations. Lastly, the back office operations involve cross-checking the data for trades conducted to make sure that they are correct as well as transacting the needed transfers.

Martin Lustgarten

Martin Lustgarten is an accomplished investment banker who is mainly based in Florida. His reputation is entangled mainly around his investment banking firm known as Lustgarten, Martin. He is a huge believer of diversifying one’s investment or wealth. As so, Lustgarten has maintained a trend of spreading his wealthy in several nations around the world. This trend has allowed him to limit his risk while expanding his wealth portfolio.

Apart from diversifying his investment portfolio, he has exuded a knack for keeping a close watch on each market, which allows him to react when he spots a market downturn. Martin utilizes his experience and expertise to spot emerging trends.This has proven to be a significant portion of his recipe for success. In respect of his insight in investment banking, he is one of the best go-to investment bankers in the world.

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