What do Investment Bankers do and How to Become One?Aishwarya Pandey
Investment bankers were born when the American economy was growing at a much faster rate than commercial banks. As a result of which the commercial banks could not keep up the pace with the growing instruction of heavy industries and railways, investment banker came to their rescue.
The gap between the people with money and the people who need it is bridged by none other than the investment bankers. This might sound like the concept of loans to you. However, it is a little different. The only difference is that these loans are enough to run a whole company or even for the acquisition of one. Back in the 19th-century government-issued bonds to help secure their projects. They would float these bonds in the market for or the public. The public would be given the securities in return of money and that is how the government finances projects. Renowned investors would buy these bonds as capital. However, when the amount of loan is huge trust becomes an issue. To mitigate this issue investment bankers were born. However today investment bankers offer a slew of Financial solutions apart from merely playing a middle man’s role, namely:
Underwriting Of Stocks Or Bonds:
Underwriting is basically and a formal agreement that finalizes a pact a project between investors and the corporations. Investors help investors vehemently facilitate in the said process and charge of fee for the same.
IPO refers to Initial Public Offering. Company e grows exponentially it generally goes public. This means that offers its shares to the public now. the public can have ownership in the company as well. the role of investors investment bankers here is to overlook the entire process from end to end.
Mergers and Acquisitions:
In the case of mergers and acquisitions both the parties seek financial advice from investment bankers. The bank assesses the financial value of the company to date to the client. This helps the client to winnow out its options.
How do you become an investment banker?
You will need all the essential skills namely, market analysis and a wide range of technical skills. You must be of a multifaceted person with intellectual curiosity in maths, analytics and finance. Your skills must also be intertwined with creativity which is required for building innovative solutions.
Working for long hours under immense pressure is something investment bankers do all the time. That is needless to say that discipline is of utmost importance in this career field. Passion reserve warrants and commitment must be inter-wined together. networking is another very important skill that you must acquire in this field. After all, that is how any corporate professional climbs the ladder. You must maintain a positive and professional attitude all the time.
If you have if you are interested in this role you must possess an economics mathematics for an accounting background. professionals having an MBA degree or it is a BBA degree are considered for the role. Not having a Masters in this field will not deter you from pursuing your dream of becoming an investment banker. You can continue your quest after finishing your undergraduate and simultaneously doing a certification course like CFA or CA. Delhi’s Wall Street institute offers a variety of certifications for investment bankers. You should definitely check it out.
However, if you are planning to study abroad you should consider the following colleges:
- London School of Economics
- Oxford University
- Cambridge University
- Harvard University
- Columbia University
- Yale University
- University of Pennsylvania
- Cornell University
- University of Chicago
- University of California
Apart from doing a masters of bachelors in this field, you may opt for internships and certifications to fetch more brownie points. in order to enter the field, you must prove your credibility by way of an exceptional CGPA, extracurriculars, internships, certifications and projects.
An investment bank off fines the best investment banks in the world like Credit Suisse, Goldman Sachs, Morgan Stanley and Merrill Lynch usually prefer for students from top 10 business institutions of the country. Sure, the competition must be high but the compensation is even higher.
Investment bankers find their way in the entire economy, they are ubiquitous. The payroll is exceptionally high with a starting Goldman Sachs employee being 180,000 dollars a year. It is a lucrative job with paramount learning opportunities.
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