Category Archives: Investment Firms

The Three Benefits of Investment Banking

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When it comes to investment banking, it is better than other methods if financial growth. Even startups and larger companies use them to assist them in transactions. If you are looking to increase your financial health, here is why you should consider seeking an investment advisor today.

Investment banking brings three primary benefits to the table. Firstly, you get more security. This means that the actual infrastructure and IT is more stable for you. They have more resources to select the best equipment, software, connection, and employees to innovate and manage it. This ensures that your data, such as communications, transfers, secret files, and holdings, are incredibly secure. They also have the information and research departments to analyze the data and predict when the market is going into a downturn. This protects your wealth from being destroyed by a political upheaval or more in today’s unstable world.

Then there is the issue of actually growing your funds, which is why you seek out investment bankers. They can get you into the markets at amazing positions not available to other small banks and brokerage firms. That way, you don’t waste any time and you start making more money sooner. With the extra income you have, you’ll be able to buy more of the things that you want and need.

Thirdly, investment banking allows you to have more options to explore. When you simply go with one investment, you are stuck in that vehicle. But an investment bank obviously specializes in making you the most amount of money with the most options, so you can have all the data you need to make an excellent decision. That’s the way investing should be.

Martin Lustgarten is an example of an excellent investment advisor. He is trained and has experience in the field of investment banking for years now. Based in Florida, he is actually from Austria and also holds citizenship in Venezuela.

He believes in reducing risk and making his clients the most amount of money possible in the shortest time frame. That’s why he utilizes international investment vehicles for himself and others. He is well known for having an eye for the markets.

Madison Street Capital, An Example Of A Successful Investment Banking Firm

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What Is Investment Banking?

 

Investment banking differs substantially from retail banking. As its name implies, investment banking focuses on investing money in order to make a profit. Retail banking is about taking deposits from customers and loaning a portion of the those deposits out to other people and businesses. The nature of retail banking is very simple at heart. Investment banking on the other hand can be quite complex and span several dimensions in finance.

 

So what exactly is investment banking? To start, most investment banks do not take personal deposits such as that found in a retail bank. In fact, most investment banks will not have any branches staffed with tellers where you can make a deposit and take out cash. Investment banks typically will not have savings account where you can put away money and watch it accrue interest.

 

Instead investment banks will have financial advisors, portfolio managers and investors on behalf of the bank. If there are any branches to an investment bank they are often strictly for employees and do not generally interact with the public as retail banks do. You won’t find a checking account at an investment bank either.

 

So how do investment banks make money? They take funds and invest it directly into companies, bonds and commodities. For example investment banks will purchase companies outright and take full ownership of them. Or, they can buy a certain percentage of stock and became a primary shareholder by acquiring 51% or more of a certain company’s stock for example. Investing in bonds is self explanatory. Just as private investors do on their own, investment banks will buy and sell large amounts of commodities on the daily market in hopes of turning a profit. There is some overlap between retail banks and investment banks. Both will make personal, business and home loans to people and earn money through interest and fees.

 

An Example Of A Successful Investment Banking Firm

 

There are just about as many if not more investment banks than retail banks in the world. One good example of a successful investment bank is Madison Street Capital. This firm is based in Chicago, Illinois. They are a good example of a medium sized investment banking firm. Not only due they buy and sell stock, commodities and make business loans, they also act as facilitators during mergers and acquisitions.

 

 Madison Street Capital invests in and works with companies not only at home in the United States but abroad as well. This is because investments through the banking system can be made just as easily abroad as at home. Some firms like Madison Street Capital can specialize in helping middle sizes firms gain a foothold in other countries as they try to expand their products abroad.