Understanding The Role Of Investment Banks In The Economy

If you think all investment banks do is investment money into stocks and bonds and then sell them off for a profit, then you are wrong. Investment banks perform a large variety of financial tasks besides investing in stocks and bonds. For example, did you know that investment banks help companies proceed with a merger with another firm?

In the case of mergers, an investment bank help the merging process to go through smoothly. They do this by minimizing disruptions caused to both companies and helping to lay out a restructuring plan that incorporates both firms into the newer and large firm that results from the merger.

Another task that investment banks perform is guiding a company through an acquisition of another typically smaller firm. In this role investment banks can act as mediator or middlemen. They often help ensure that the deal is fair for both parties, so that the acquisition can go through with minimal turmoil.

Investment banks also provide portfolio valuation services to clients. In portfolio valuation, an investment bank provides an unbiased valuation of the assets of a company or individual based on current and projected market value of the assets.

Helping companies raise capital is one of the investment banks most important tasks. They often value the stock of a company, and then are actually involved in the selling process. For this service, investment banks charge fees or get a percentage of the shares sold.

Martin Lustgarten, is an example of an investment banker who has dealt with the tasks outlined above. He has created his own firm called Lustgarten Martin which operates out of Florida. The firm specializes in investment in Central, South and North America.

Martin Lustgarten is fluent in Spanish and is well acquainted with the culture and business environment of Central and South America. He lives in Ponte Vedra Beach, outside of Jacksonville, Florida. Mr. Lustgarten is an avid collector of rare watches and other rare antiques. He also trades in antiques in addition to managing his investment firm Lustgarten Martin.

One thought on “Understanding The Role Of Investment Banks In The Economy

  1. Investment banks may negotiate terms on behalf of their clients and deal directly with the acquired party when performing an acquisition for a client. It might be really easy for help essay writing to get everything request that they want which is not that serious for them all.

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