Investment banking as a sector summons individuals, multinationals and governments by helping them make investment decisions. The investment banks, depending upon the scale of operation, underwrite the debt, finance and capital requirement by issuing fresh securities equity. They can do so in their own capacity or act as an agent for the same. If they are large operators, they would be able to facilitate a merger and acquisitions, sale or reorganisation of the entity and also other services like derivative trading, equity securities trading, fixed income instruments, currency services, commodities services and market determination.
Investment banks are different from commercial banks and retail banks since they do not accept deposits. This separation was asserted to separate the work coverage of investment banks from the rest. In the United States, the difference was maintained from 1933 to 1999 when the Glass-Steagall Act was repealed by Gramm Leach Bliley Act.
Investment banks provide both sell side and buy side operations. Sell-side operations include advice on Life Insurances, private equity, mutual funds and hedge funds. Buy side operations include taking care of selling securities, market determination and generation of securities.
Whether you are making investment plans, thinking of an exit in your business, been looking for fresh financial capital, undergoing a reorganisation of your corporation or looking to acquire an organisation or merge your entity with some other entity; there is only one name you can bank upon – Martin Lustgarten. Based out of Florida, this man has helped and convened many such successful projects for not only early stage investors, but also for big institutions, corporations, asset management companies and other business.
Martin Lustgarten regularly coaches his peer group on the way investment banking works. He sees the opportunity before it drops. Locate trends before they happen. Martin Lustgarten has made his wealth through his passion and smart work and promises the same when it comes to managing your wealth. He is a diverse person and is passionate about things that cannot be valued in terms of money. He collects watches of historical significance and trades them for significant profits.
Equities First Holdings, LLC was established in 2002 and has its headquarters located in Indianapolis, Indiana. This is an American company that offers security loan services for business investors. Equities First Holdings, LLC builds all of its loan transactions on integrity and transparency code. It ensures that business investors achieve loans at a minimum risk.
The Present Loan Concern
Many borrowers look for quick starting capital to expand or establish businesses. Most banks and lending institutions have put down the lid on their loan qualifications in the current state of affairs thereby closing loan opportunities for many prospective borrowers. Many lending institutions have tightened the loan qualifications and increased their interest rates. Hence, many borrowers opt for other alternative loan options.
Equities First Establishes an Innovative Lending Alternative
Equities First has launched an alternative loan option based on client stocks. Equities loans have achieved attractiveness as the substitute loan application for those who desire immediate business investment but may not qualify for the usual credit-based loans. Several business enterprises currently favor this substitute loaning option. It has naturally fixed interest rates and also presents higher loan-to-value ratio. These stock-based loans also provide assurance during the entire loan life cycle. The suggestion of providing loans security based on stocks appears practical and ground-breaking loan alternative for individuals who seek immediate working capital.
Advantages of Stock-based Loans
There exist market fluctuations which may lead to difficulties in borrower loan repayment in typical loan periods. The innovative stock-based loans present a borrower with the shield against any investment risks especially during instances of market difficulty. The Equities First CEO also says that Stock-based loans offer a borrower with non-recourse aspects that allow loonies to default from the loan even when the value of their business stocks decrease in cost.
The stock-based loan present the loaned with an opportunity to default from the loan agreement and still keep the loan proceeds without having any additional obligation to the company. The stock-based loans also present the borrower with an unchanging interest charge of up to four percent and a loan-to-value amount of up to fifty percent. The borrower can utilize the stock loans for any reasons and is not limited to the company.
An investment bank is a separate unit in the banking industry. Its function is to provide assistance to companies and individuals in raising capital. In case a company wishes to offer new shares in the market, the bank undertakes the responsibility of purchasing the previous shares which have not been bought before. They also assist firms to restructure their organizations, ease the process of merging or acquisition, establishing new markets, and offering advice to companies on issuing of shares.
Investment banks serve as intermediaries between companies and investors whenever the company intends to raise capital through debt financing or issuing shares. They help in setting up prices for various financial instruments to maximize returns. Mostly when a firm is issuing its Initial Public Offering (IPO), an investment bank may opt to buy all or most of the shares direct from the company and later trade them in the market. As the company’s proxy, the bank also enjoys profits by issuing the shares at higher a price. Although the investment banks engage professional analysts in pricing the stock, they stand a chance of suffering a significant level of risk especially if they overvalue the stock. As such, they may be required to trade them at a lower price than what was initially paid.
About Martin Lustgarten
Born on July 9th, 1959, Martin Lustgarten is a prominent investment banker. He has worked in many companies in the field of banking and finance. Currently, he is the CEO of his business. As an experienced investment banker, Martin offers guidance to firms on banking services.
As an innovative and professional investment banker, he is in charge of all affairs relating to marketing in his organization. This ensures that his firm reaches all its potential clients efficiently and maintains its corporate image. Apparently, Martin is considered the best adviser as far as banking is concerned. Follow him on Instagram to learn more about his life and services.
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