Investment banking plays a crucial role in the economy. Investment banks raise capital for companies that need funding. This is often done by raising money through the selling of company stock. The investment bank will often help evaluate the value of the company’s stock, determine the price per share and actually help to sell the stock on the markets. In return for providing this service investment banks receive a commission for the sale of stock. Consultation on the price and amount of stock to sell is another way investment banks earn revenue.
Investment banks also invest their own money into a wide variety of financial instruments. They often buy and sell stocks for profits, and can invest in commodities like oil, gold, metals, foodstuffs and raw materials. Investment banks can also invest in financial derivatives and equity. They can even have controlling stakes in companies. For example an investment bank may decided to buy up a company directly and manage it themselves or have it managed it for them. Profits from the company would flow back to the investment bank then.
Being an investment banker requires competency in the financial markets and an understanding of the global economy. Martin Lustgarten has all the characteristics needed to be successful in investment banking. He has created his very own investment bank called Lustgarten Martin after his name. Martin has a strong understanding of developing markets in South America. He has used his inside knowledge of the markets there to amass a fortune and build up his wealth.
Based out of South Florida, Mr. Lustgarten believes that one should approach any investment with a strong analytical approach. This involves analyzing the risk involved in the potential investment against the possible returns from the investment. A highly analytical approach, Mr. Lustgarten believes helps to minimize risk while at the same allowing his company to invest in higher return investments that due carry greater risk.
Martin Lustgarten enjoys spending time with his family in South Florida in his spare time. He is also an avid collector of luxury and vintage items. He has a collection of vintages watches and also buys and sells rare and vintage watches. You can learn more about Lustgarten by visiting his Slideshare account.