What Do Investment Bankers Do? Definition and Career Guide
Investment banking is a rewarding field if you have the right training and skills. Good analytical and mathematical skills are necessary for this high-profile career.
Among the most prestigious professions on Wall Street, investment banking holds a place of honor. The investment banking industry is known for being characterized by a high level of stress and long working hours, despite featuring some of the most valuable and lucrative positions in the industry.
In investment banking, analysts or associates do not uncommonly work 80 to 100 hours per week.
Is there any actual information about investment banking? Despite the lack of actual knowledge, there is much confusion. People are most likely familiar with the phrase “investment banking”, and have heard it at least once, but don’t really understand what it entails, aside from a vague notion that it somehow involves investing and banking.
This article aims to demystify investment banking by explaining what investment bankers do as plainly and simply as possible.
What Is an Investment Banker?
A financial adviser provides financial services to companies and governments to raise funds. Investment banks or their investment banking divisions, such as commercial banks, have several positions in this term, including financial associate, financial analyst, managing director, and vice president.
These firms are also able to provide investors with advice and services for buying securities. Their services may include underwriting municipal bonds and mergers and acquisitions for their clients.
What Does An Investment Banker Do?
Investing ventures undertaken by companies require investment bankers to manage a multitude of financial processes. Depending on how much your clients pay you, you make money. Investing in banking is an international career, so you may work with clients all over the world. Work schedules may vary based on different time zones. There is often a high level of pressure and long hours for investment bankers. Stress can be part of the job, but the high earnings potential often outweighs the trouble. They usually perform the following duties:
- Building financial models to analyze and support mergers and acquisitions
- The stock price must be fixed so that investors can invest and the company can raise funds to grow
- Ensuring compliance with financial regulatory agencies, including SEBI.
- Implementing IPOs (Initial Public Offerings) and preparing supporting documents
- Providing assistance to clients with pricing their financial instruments
- Providing advice on the issuance of securities to investors to companies
- Assisting companies, firms, or other entities in raising funds by issuing securities, underwriting municipal bonds, or offering equity and debt.
- Gather relevant market information and market reports in order to make financial decisions.
- Determine risks associated with specific projects and advise clients on moving forward with them.
- Predict company performance by performing daily company valuations, financial modeling, and financial metric calculations.
- Ensure that presentations and proposals outline the benefits, risks, and timelines of the project.
- Organized meetings, answer emails, and handle administrative tasks.
- Edit, revise, and present research reports, pitchbooks, and PPT presentations.
Investment Banks Types
Choosing investment banking as a career means considering two types:
1. Industry coverage.
Investment banks that do industry insurance work usually assign their staff to a specific market or industry segment. The industry coverage crew is headed through the coping with the director, and their responsibility is to stay up to date with modern information, trends, and competitors in their region. These corporations generally shape smaller teams to deal with extraordinary initiatives for precise clients. In their specific market segment, these companies are primarily concerned with acquiring new customers and maintaining existing ones. Among their responsibilities are preparing presentations for clients, preparing enterprise reviews, and executing transactions.
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