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The company was founded in the year 1869 and has its headquarter in New York, but maintains subsidiary offices in the major financial centers globally. Over time, the firm has been largely recognized as among the best premier investment banks globally. The corporation linked itself to the New York Stock Exchange in the year 1896 from which it has been able to trade successfully its shares. As a result of this, its capital in 1898 stood at $1.6 million and has since grown rapidly. Furthermore, the firm started issuing the IPOs in the year 1906 upon taking over Sears, Roebuck, and Company.
This is a deal mainly attributed to the personal friendship between Henry Goldman and Julius Rosenwald, who was the owner of the firm. Largely, the company reports its business in four main business segments namely, investment banking, investing and lending, institutional services, and investment management. In investment banking, the range of services that are offered targets a diverse group including financial institutions, governments, corporations, and investment funds. In this, it mainly provides services related to the strategic advisory that entails forms of acquisitions, mergers, divestitures, and risk management.
With regard to institutional services, the firm facilitates the transactions done by clients in relation to making the markets in equity, fixed income, commodity products, and currency attainable for the clients. This is supported by the act of making markets clear for the clients, as well as clearing transactions on major stocks, futures, and options for clients through the provision of prime brokerage, financial, and securities lending services. In investing and lending, the company invests and originates loans for the provision of financing to its clients that are long-term in nature.
Subsequently, the firm makes investments that are consolidated directly or indirectly through the funds it manages, through real estate entities, and through private and public equity securities that it manages. Ultimately, in investment banking, the firm provides clients with investment products and investment management services through accounts managed separately, and other ways such as private investment funds or mutual funds (Sun 78-86).
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