Investment banking benefits the economy, specifically businesses in profound ways. Without investment banking, our economy would be stagnant and new businesses would lack the capital they need to expand. This would create a lack of news jobs and production would suffer as a result.
To explain in more detail, investment banks are big investors or lenders of money to businesses. The reason most businesses take on loans or credit is so that they can invest that money into a new plant, a new office or new product. This often results in new jobs being created or a better product. In the end, the economy benefits as a whole.
As you can see, investment banking is vital to the health and well being of our economy. Just imagine, if you saw most investment banks disappear overnight. Who would provide businesses with much needed loans? What would happen if these businesses stopped getting access to investment banks? It is not an exaggeration to say then, that investment banks are a crucial part of our free market economy.
Investment banks do many other things besides just loaning out money to businesses. They help to move goods on the market. They will buy and sell stock, items and commodities. One of the common tasks of investment banks is not only lending money to companies, but appraising their value and then issuing shares for sale. Once the share are issued, the investment bank can then sell the stocks in exchange for a commission.
Investment banks also act as direct investors in properties. They can buy out properties entirely and renovate them. They can then sell them or have them managed on their own behalf.
Martin Lustgarten is an example of an investment banker who has achieved considerable success. The name of the investment bank that Martin Lustgarten works at is called Lustgarten Martin. He is the founder and director of the company which is based out of South Florida.
Martin Lustgarten’s investment bank is focused on investment in the Latin American markets. Mr. Lustgarten has spent significant time working and living in Latin America, so he has developed a keen eye for smart investments in Latin America. He is also fluent in the Spanish language, culture and business practices.