Investment banking plays a significant role in the development of our economy. It serves as an intermediary between investors and companies who want to raise capital.
Investment banking utilizes idle funds into good use. It promotes economic growth by maximizing the use of funds rather than allowing it to be idle, or invested elsewhere in a much lower return of investment or ROI.
Simply defined, investment banking is the process of raising capital for private companies and the government through the issuance of stocks and bonds.
The more companies who want to raise capital, the greater the demand for investors. If investors are not enough nationally then international investors comes into play. This in turn affects the economy globally.
Excess and dwindling resources are used, scarce resources are filled up; resources are then, evenly distributed on a global scale.
Investment banks also act as advisors. They recommend the best ways to raise capital. They use sophisticated pricing formulas to come up with fair prices for the financial instruments that will be issued.
The banks also determine the interest rate of bonds following the current rates or similar businesses in the market.
The people who run these investment banks are qualified bankers. They are professionals who are trained to meet the capital requirements of companies and government entities. Without these people, investment banking will not be possible.
But not all banking investors have the same competence. Different bankers have different motives. We need bankers who are dedicated in their work. We need professionals who has proven track record in this field and industry. Therefore we need great banking investors like Martin Lustgarten.
Martin Lustgarten is an expert global investor. He has a proven track record and strong understanding about investment banking. He is a hard worker and puts his clients’ interest first before his own. Lustgarten utilizes his extensive experience to achieve the best results for his clients’ investments.
He strongly believes that his success entirely depends on the success of his clients. He’s in-depth knowledge and experience in investment banking will help promote economic growth. And this will help consummate the demand and supply for capital raisers and investors globally. Follow Lustgarten on Instagram @mlustgarten to learn more.