Investment Banking in Simple Terms

Investment Banking in Simple Terms

Investment banking is a sector in finance that many people poorly understand. If you look at the name, then you easily see that investment banking is about investments. The investments of course, are made with the idea that they will provide a payoff in the end. A payoff is when a person not only receives the money they put back in, but also makes a profit as well.

 

Most investment bankers will use forecasts compiled by economists to decide what to invest in and how much of their money to invest in a category. Politics, advances in technology and trends can also influence the investment banker. There are many different things investment bankers can invest in. This can be tangible assets like precious metals. Gold is an example of a precious metal, as is silver. Property is another tangible or physical asset that can be invested in.

 

Investment bankers can also invest in financial notes such as bonds. Bonds can be issued by local, state, government and even corporate entities. Government bonds, from highly stable economies such as the USA and UK are considered to be some of the most safest investments one can make. Another highly known investment option popular with investment bankers is stocks. Stocks are simply shares of a company that are sold to investors. Each share is essentially a managing or controlling interest in the firm. Stock holders can be paid dividends if the company is profitable. Most investment banks buy stocks to later sell them off at a higher price.

 

Martin Lustgarten is an example of a wise investment banker who leverages all of his talents to work in his favor when seeking investments. Being fluent in Spanish and Latin American culture, Martin Lustgarten invests heavily there. This insight and understand gives him an edge over foreign investors who lack the knowledge and understanding of the culture and language of Latin America that he has.

 

Mr. Lustgarten created the investment banking firm Lustgarten Martin. It is a small boutique firm that specializes in investments in Latin American markets. Martin Lustgarten resides in Ponte Vedra Beach, with his wife and kids. His hobbies include collecting rare antiques with an affinity for watches.

 

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