Investment banking is typically done through a private company, providing numerous financially-related services to corporations, governments, and individuals. These services can include raising financial capital by the issuance of securities and helping companies that are involved in acquisitions or mergers.
An investment bank can also help with things like trading of derivatives and equity securities, currencies and commodities, and market making. They differ from commercial and retail banks due to the fact that they do not take deposits. The Glass-Steagall Act, created in 1933 and repealed in 1999, stated that there would be a separation between commercial banks and investment banking. The 2010 Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act helped assert additional separations of the services by investment banking and commercial banking.
There are two main sides of business in the investment banking industry. The “sell side” comprises of trading securities for cash or other securities. This trading can also involve the promotion of securities. The “buy side” comprises of the service of giving advice to institutions that buy their services. The most common entities of the “buy side” of the business are mutual funds, unit trusts, hedge funds, life insurance companies, and private equity funds.
Investment banking can also be split using a “Chinese wall” to prevent information from crossing the public of private functions lines. Private areas typically deal with insider information that cannot be disclosed publicly and public areas of the business can deal with things like stock analysis, or other things dealing with public information.
Anyone who provides investment banking services in the United States much be a licensed broker-dealer and is absolutely subject to the regulation of the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Martin Lustgarten is a Florida-based investment banker. He is a citizen of Venezuela and Austria, and specializes in international investments. He is an expert at keeping his eye on each market, looking for oncoming trends and allowing him to service his clients to the best of his ability.
He keeps a diverse global portfolio and knows exactly how to expand a client’s wealth. He can ensure a client’s investment will allow them to retire well, or just grow to its full potential. Martin Lustgarten is one of the smartest minds in the investment banking industry.