The Roles of Investment Banks

Companies raise capital mainly through selling stocks and bonds. However, executing the transactions is not as easy as it sounds because it requires special expertise. A company needs a professional who will guide them through pricing financial instruments to ensure that they maximize revenues to meet their regulatory requirements. Investment banks come in to assist with all those proceedings. Essentially, investment banks act as a bridge between investors and large businesses. They also assist governments meet their financial challenges and get financing.

 

Roles of investment banks

 

They act as advisors

 

An investment bank will come in handy to help them make that decision by advising them accordingly. The banks advise companies or governments by taking into consideration the current economic climate. It can either recommend issuing public bonds or selling ownership stake through stocks. They also help in coming up with the prices of the instruments by making use of sophisticated financial models.

 

Underwriting bonds and stocks

 

When a company decides to raise capital or additional funds through debt offering or equity, an investment bank must underwrite the securities. That can be done by one or two investment banks. That means that the company will buy a given number of shares or bonds at a certain price then it will re-sell them through an exchange.

 

Other activities

 

Most investment banks are diversified in terms of the kind of services they offer. Some other roles they play include carrying out research, trading and sales and asset management. They also do wealth management and offer securitized products.

 

Martin Lustgarten

 

Martin lives in Miami, FL and he is in his 50’s. Some of his known relatives are Claudia Lustgarten and Andrea Lustgarten.
Martin is active on social media. You can find him on Facebook, MySpace, Twitter, Linkedin, Google, Jigsaw, ZoomInfo and Yahoo among other social platforms. He is in the investment banking sector and he has made positive impacts not only in his company but in the investment banking sector in general.

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