Investment Banking: A Career In Investment Banking Is A Worthy Investment...Find Out!
Drawn by the allure of high salaries and copious cachet, young, aggressive, ambitious finance students right out of college often gravitate to investment banking. This is one of the few careers in which a 22-year-old with nothing but a bachelor's degree can earn well into the six figures in his first year out of school. Moreover, investment banking often serves as a springboard to even more lucrative and prestigious careers, such as venture capital, private equity and wealth management.
Who is an investment banker?
An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities.
Educational requirement of an investment banker
A bachelor's degree is the minimum educational qualification required to work as an investment banker. Entry-level analyst positions in the field are typically open to bachelor's degree graduates, and it is possible to move on to a senior banker role without a master's degree in many investment banks
What does an investment banker do?
Whether or not an investment banker is affiliated with such a firm, he or she will assist in large, complicated financial transactions. These may include structuring an acquisition, merger, or sale for a client or group of clients. A core task also includes the issuing of securities as a means of raising money.
Skills to be an investment banker
- proven strong numerical and analytical skills.
- excellent teamwork and team leadership skills.
- communication and interpersonal skills.
- project and time management ability.
- dedication, energy, and commitment.
- self-confidence and the ability to make difficult decisions.
While you can get a job with a bachelor's degree, having an advanced degree is another way to improve your prospects. A master's degree in business administration (MBA) or an advanced degree in math can add to your appeal. A chartered financial analyst (CFA) certification can help, too.
Investment Banker Positions
Associate (glorified grunt)
VP (account manager)
Director (senior account manager, rainmaker in training)
Managing Director (rainmaker)
The explosion of technology has brought democratic principles in the procedure of building companies and raising capital. Bankers exist because of the essential business needs such as the sudden requirement of capital and company acquisition of other companies. Investment bankers have networks and the capability to execute these financial transactions.
Investment banking offers the opportunity to become an expert at building large, complex financial models at the earliest stage of your career. While bankers aren?t necessarily great investors, they do spend a lot of time on valuation work, and this can be an excellent way to start your career.