Understanding the Core Investment Banking Activities

An investment bank works on behalf of individuals, governments and corporations to help them raise financial capital. The bank acts as an agent to the institutions in securities market. It also initiates mergers and acquisitions to ensure seamless transition among companies. Investment banks are different from conventional banks in the sense they deal with higher risk activities and do not accept deposits.

To prevent information from leaking, an investment bank also creates a separating wall through private areas within the bank, which are tasked with handling private insider information that should not be disclosed publicly.

Basic investment banking activities

Investment banking is divided into back office, front office and middle office activities. Investment banks assist both investors and corporations to secure securities. They also edify corporations through information about when to sell their securities.

The front office role of an investment bank deals with everything that concerns revenue generation. There are different kinds of market that the investment bank should review to come up with guiding information that can inspire decision making.

Research

Before investing in securities, it is vital to have first hand information about the prospects of company. This is basically what the research division of an investment bank helps to effect. Information assists traders in making decisions that are profitable because the market is volatile and any slight deviation from the truth could cause huge losses.

Martin Lustgarten and his contribution

Martin Lustgarten is an investment banker who has been working with different companies in the securities market for years. His roles in assisting companies include market review and preparation of reports about the movement of financial commodities. He held both Australian and Venezuela citizenship and he leveraged citizenship so he could reach more clients to offer them assistance in making investment decisions.

Retirement is a dream among many people, but Martin Lustgarten thinks his skills should never be left to rest when there are hundreds of people looking for useful information. He has been active for decades and his view about the market is broad and informed by the changes that happen each day.