Investment banking is a private brokerage firm that provides various financial-related services to individuals, organizations, corporations, and governments. Investment banks are responsible for helping companies raise capital and serve as the intermediary in the issuance of publicly traded commodities. Moreover, investment banking also provides advisory services to companies during amalgamations and restructuring. They also offer supplementary services such as securities trading.
Unlike commercial banking sector, investment banking does not accept deposits. Upon the endorsement of Glass-Steagall Act of 1993, the U.S. upholds a separation between the banking segments. However, some industrialized nations have traditionally not supported the separation between the two sectors. As part of Dodd-Frank Act of 2010, the Volcker Rules assumes some functional separation between the two banking segments.
Investment banking is categorized into the sell side and the buy side. The sell side trades securities for other securities and cash whereas the buy side provides financial advice to institutions. Buy side entities include unit funds, life insurance companies, hedge funds, and private equity funds. Furthermore, an investment bank may also be split into the public and private sectors. While the public sector deals with publicly disclosed information, the private segment deals with insider information. Importantly, the United States requires that financial advisors must subject to the U.S. Financial Industry Regulatory Authority and must be licensed as a broker-dealer.
About: Martin Lustgarten
As the economy recovers, it is the time for people to plan for their future. During the great economic recession in the United States, retirement plan seemed like a dream. However, with successful investment tips from financial investment experts like Martin Lustgarten, that dream can be a reality. Americans wishing to retire comfortably should start planning for their retirement now. Although most people consider retirement as an important life aspect, just a few can plan for their retirement life. Martin Lustgarten is among the world’s most intelligent financial services advisors with notable success.
As a citizen of Venezuela and Austria, Lustgarten leverages his citizenship to offer reliable investment advisory services to his clients for decades. Martin encourages global-scale investments as they yield high returns and have a lower risk. As a veteran in interpreting emerging market trends, Martin Lustgarten helps his clients to act quickly when the market is about to fluctuate.