The Role Of Investment Banking In The Economy
Investment banks are vital for the economy to keep on running smoothly. To start, investment banks raise money for companies that need capital to expand facilities, develop new products, or money to keep the business operating. An investment bank helps a firm raise money by helping to determine the value of company stock. The investment bank can then actually play the role of a salesman and try and sell company stock to investors. In exchange for offering these services for companies needing capital, investment banks get paid or receive a commission from the sales of company stock.
As you can see investment banks play a crucial role in the economy by being a major player in the raising of capital for companies in need of money. Investment banks play another role in the economy, and that is actually buying and selling stock, commodities derivatives, and equity. By buying, selling and trading commodities, stocks and financial instruments investment banks help keep the economy moving.
Other tasks that investment banks due are aiding companies with mergers and acquisitions. They often act as mediators between two companies that are about to merge. Investment banks also help lay out the terms of an acquisition. In both cases the investment bank tries to negotiate a fair deal and settlement for both parties. This tasks is another crucial part that investment banks play in the economy.
A highly successful investment banker that has done all of these tasks is Martin Lustgarten. He founded his own firm called Lustgarten Martin. The firm is based out of South Florida, in Ponte Verda Beach, where Mr. Lustgarten also resides with his family. The firm is famous for its extensive investments in South America.
Mr. Lustgarten has built up his firm Lustgarten Martin through hard work, dedication and sound investment strategy. The firm operates on several principles. The first is to carefully analyze the risk and return ratio of all investments. The second principle is to ensure transparency in dealing. The third principle is to try and minimize risk while at the same time maximizing returns. These principles have been the cornerstone of success for Martin Lustgarten’s firm.