Investment banking is a brokerage firm that provides various financial-related services to corporations, governments, and individual investors. Investment banks help its clients in raising capital finance, underwriting, and acts as its customers’ agent during the issuance of stock. Besides, an investment bank is involved in the acquisition, reorganization, and mergers. It also deals with ancillary services ranging from trading securities, market making, and equity securities.
Unlike commercial banking sector, investment banking does not accept deposit. Upon the approval of Glass-Steagall Act in 1993, commercial and investment banking segments in the United States remain separate. However, some industrialized countries have not maintained such separation. The Dodd-Frank Act of 2010 asserts institutional separation between investment and commercial banking industries. Investment banking has two lines of business that include the sell-side and the buy-side. The sell-side involves promotion of securities or trading securities for cash or other securities while the buy-side provides financial advisory services to institutions and individual investors. Examples of buy-side entities include hedge funds, private equity, unit trust, and mutual funds.
Moreover, investment banking may be split into the private and public sections with a Chinese wall preventing information flow. While the private section deals with insider information not available to the public, the public domain specializes in publicly disclosed information such as stock analysis. In the United States, every financial advisor must be certified as a broker-dealer and subject to the relevant regulatory body.
About Martin Lustgarten
Considering that the economy is recovering at an outstanding rate, it is the time that people should look into the future. During the Great Recession, retirement seemed like a dream, but with Martin Lustgarten’s investment tips that dream can be a reality. Martin Lustgarten has a dual citizenship; he is a citizen of Venezuela as well as Austria. Over the years, he has leveraged his citizenship to provide reliable investment advice to his clients.
He believes heavily in international investment. Foreign investments help Martin limit the expected risk while riding on the success of the local economy. As a veteran in observing market trends, Martin responds quickly when the market is about to fluctuate. Therefore, if you want to retire wealthy, follow Martin’s investment tips.
For more information please visit http://mlustgarten.blogspot.com/