Understanding The Role Of Investment Banking In The Economy with Martin Lustgarten

Investment Banks play a vital role in stimulating the economy and moving capital. One of the major things investment banks do on a daily basis is to invest capital, whether is it their own money or a client’s money and use it to buy stock in a company, municipal bonds, federal bonds and even purchase companies outright.


The purchase of company stock helps companies that are issuing the stock obtain much needed capital that they need to expand or continue business operations. Bonds work in a similar way except that the issuer is a government entity such as a city or a country. Purchasing bonds gives much needed money to a government institution to complete projects such as building roads, repairing bridges or adding facilities such as schools or parks.


Investment banks also actually help companies issue the stock. They don’t just buy and sell stock themselves. For example an investment bank will be like an appraiser and determine how much the stock of a company is worth. The company hiring the investment bank for appraisal of its stock, could also task the investment bank with actually selling the stock to other investors. If this is the case the investment bank acts as a broker, which is something that investment banks frequently do. Investment banks are considered to be experts in determining the true value on the market of a newly issued company stock. Meanwhile, the buying and selling of stocks helps move equity across the markets.


Martin Lustgarten is one of the many investment bankers who has had a long and successful career in the field of investment banking. Mr. Lustgarten has his own investment banking company that he named after himself. The name of his firm is Lustgarten Martin and it is based in Florida. His company specializes in investment in Latin America, due to Martin Lustgarten’s strong grasp of the Latin American culture and Spanish language.


Now living in Ponte Vedra Beach near Jacksonville, Florida Martin Lustgarten is now focusing on spending most of his free time with his wife and kids when he is not working at Lustgarten Martin. He is the CEO there. Mr. Lustgarten is also an avid collector of unique and rare items with an eye for vintage watches.

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