Investment banking involves the provision of different financial-related services to institutions and individuals. These services include helping clients to raise financial capital and acting on their behalf during the issuance of securities. Additionally, investment banks act as advisors to institutions involved in amalgamations and acquirements. Also, they provide ancillary services such as forex trade and market making.
Unlike commercial banking, investment banking does not accept deposits. Upon the endorsement of Glass-Steagal Act in 1993, the commercial banking and investment banking in the U.S. were separated. However, not all countries have maintained the separation between the two sectors. As part of Dodd-Frank Act of 2010, Volcker Rule maintains that not all commercial banking institutions can be separated from investment banking.
The investment banking is subdivided into the sell side and the buy side. The former involves trading securities while the latter provides investment guidance to individuals and institutions. Examples of buy-side entities include unit trusts, hedge funds, private equity, and life insurance companies. Nonetheless, investment banking can be split into private and public entities. The public entity of investment banking involves stock analysis while the private entity comprises of insider information. An investment advisory agency in the U.S. must be an accredited broker-dealer and operate under the U.S. Financial Industry Regulatory Authority.
About Martin Lustgarten
Martin Lustergaten is a Venezuelan and Austrian-based investment banking advisor. Over the years, Martin has leveraged his citizenship to help his clients across the world invest wisely. Martin’s wealth is spread in several countries to limit the expected risk while riding on lucrative benefits from the local economy. Additionally, he has a veteran eye when it comes to observing market trends and speculating financial future changes. The ability to speculate oncoming market trends allows Martin to offer reliable advice to his clients.
Martin has worked incredibly hard to ensure that his clients invest wisely. He is an ideal role model for any investors wondering how to diversify their finances. Investors wishing to grow their wealth should follow Lustgarten’s investment policies and will go places. Martin’s investment moves inform the best investments that one should make in the future.