When people think about banking, many of their thoughts revolve around the traditional local bank that is found in many cities. The local bank provides the services numerous people are familiar with such as opening checking accounts, making deposits, providing personal loans, and providing home mortgages.
The local bank provides a variety of financial services that people use daily. However, there are many types of banking institutions that provide financial services. One of the most well known beyond the local bank is investment banking. While investment banking may seem on the surface to be very similar to local banking, there are some significant differences.
The structure of investment banking is typically different than local banking institutions. Investment banking institutions can contain three areas. These areas are investment banking division, sales and training, and asset management. Any investment bank can theoretically operate with all three areas, but usually only larger more global investment banks contain all three areas. Smaller investment banks tend to only operate with the investment banking division.
Moreover, the investment banking division has two business segments. The two segments are industries and products. The two segments are structured to provide both businesses and individuals with advice regarding transactions, acquisitions, and mergers. In addition, the segments can provide assistance in relation to securing funding and helping to locate funding for business transactions.
In comparison to local banking, the focus in local banking is more on individuals and small businesses. On the other hand, investment banking tends to cater to corporate clients.
There are numerous investment bankers who are well known within the investment banking industry. Martin Lustgarten is one of these investment bankers. Martin Lustgarten is the CEO and founder of Lustgarten Martin, which is an investment bank. Martin Lustgarten directs the day-to-day operations of Lustgarten Martin.
Also, the investment bank ran by Martin Lustgarten provides a wide variety of financial services. His company helps clients prepare for financial deals, secure funding for business transactions, and provides advice concerning business financial matters.
Investment banking is a part of the banking industry that provides a wide variety of financial services. The financial transactions and business deals tend to be larger than those done in local banks. Also, the transactions and deals regarding investment banking are usually more complex and involve larger sums of money.