What does an INVESTMENT BANKER do?
Everyone knows that investment banker salary is very attractive. But in reality an investment banker, though well paid in salary, gets much more bonuses at year end. For example, an investment banker who may make USD 200,000 per annum (many of them do) in salary would be earning about USD 700,000 to 750,000 in bonuses, which is approximately about 4 times his salary. Starting salaries range from USD 60, 000 per annum to USD 170, 000 per annum for graduates from top schools with bonuses that could range from USD 40, 000 to USD 60, 000 per annum and the best thing with investment banker salary is that though the salary remains constant, the bonus increases by roughly about USD 15, 000 per annum. As you go higher up the salaries touch the sky with Vice President’s taking home about half a million and CEO’s taking home anything between USD 1 to 2 million per annum. Now, I am sure there are a lot of people out there who are really interested in how to become an investment banker. What would you do as an investment banker? From raising money to advisory services, underwriting and brokerage services to research, forex services to asset management –you do it all. But as an investment banker you have three main areas to operate in - Corporate Finance, Trading and Research Analysis. In Corporate Finance you would be dealing with corporate clients – giving advise such as mergers and acquisitions and raising money for them from the equity and debt market. In the Trading business you would be buying and selling securities and commodities while as a Research Analyst you would be analyzing the movement of stocks and predicting their movement. How do you become an investment banker? To be a good investment banker you will need a strong basic understanding of accounting, finance and economics. You will need a razor sharp mind, quick decision making capabilities, capability to work under pressure and for long hours and an appetite for the latest news and information to predict and appraise. Get into a top business school after your graduation and do your MBA. If you are good, then the doors of investment bankers open. Work is exhausting with 80-100 hour weeks and sometimes nights spent back in office but it all works out when you get your pay packet. With those kinds of salaries you will naturally laugh all the way to the bank!
What exactly does an Investment Banker do?
Think about them as agents or intermediaries. They were called Investment Banks because Other Banks provide funds themselves to finance your business; however, an investment banks provides investments (from other sources) for your business, but it has a variety of acitivies: 1. Issuance of Securities and Securitization - Basically Issuing Debt and Equity securities (Bonds, Stocks, Preferred Stocks,...etc.) as well as placing those securities for a group of investors or to the public, or even offer structured financial products and hybrid assets that sometimes may embed derivative securities. 2. Mergers and Acquisitions -- They mostly are in the sell-side of the business. They help you structure the deal, negotiate its terms, do evaluations, go over a due diligence process, and executing the deal. For instance, say you have a business and you would like to sell it to other investors, you would preferably go to an I-Bank and they would run a whole process for selling your businesses and trying to get for you, from their networks, investors that may be interested in acquiring your business. Although sell-side is the most common practice in I-Banks, they also do buy-side activities. 3. Financial Advisory -- As the name suggests, I-Banks advice their clients by offering them sophisticated analysis and evaluation on a set of strategic decisions a business is contemplating for improving the company's financial status. It could be anything that a company needs a financial consultancy on that the I-Bank, via its expertise and knowledge capital, may help the business. How do I-Banks make money? by simply charging fees for these services. They make a lot money because these fees may be very low in percentage but when taken in monetary value are huge, in addition, because they have little expenses, profit margins are high. Tips? Umm...What I would do is know as much as I could about I-Banking, and making sure that I, especially, know everything about their business, including some deals they have done in the past. Dress well, be confident and relaxed, attentive to the questions that may be thrown. They want to see your inter-personal skills, so try to demonstrate for them how good you are in interacting with people and working in teams by giving examples or even the way you answer the questions, since these skills are very essential in an I-Banking setting. Good luck!
How do you become and investment banker?
Please explain in simple terms I want to be one because they make a lot of money, but to be honest, I'm not even sure exactly what they do Also, what are hedge funds? How old do you need to be to be one? What kind of degree should I get
What does an INVESTMENT BANKER do?
my dad, who is a financial risk manager at the local energy business, got me interested in investment bankers. i think i know the basics, like that they advise clients on stock, and that they manage stock. but i dont really know that much about them at all. i was wondering what the job entails. what would you do in the average day? i was also wondering what i should be doing to prepare myself for a career as an investment banker?
As a banker can I start a business while doing job?
If you were a fresher, it would be better focusing on current job. Wait for 2–3 years so that you get to know your economic potential and you will become expert in your current field. Then go for your businessAny business requires not only Capital, Knowledge, Market Trend but a capable mindset of receiving negatives. This mindset will only be attained when you get expertise in any of the field. That enable you to satisfy your profession and passion i.e. business.As per my exposure towards business, I can suggest you “Don’t expect any thing all of sudden”. Stick yourself to one business and don’t cop up with any of your close friend/relative. If there is a loss in business, there should be loss in faith of relation.Be the one, Do the best, Hope the least, Gain the Profit then expand your business.
Is investment banking worth it?
I just quit investment banking after 7 years in it. It was always my plan to go in for 6-7 years, learn what I can then start my own business. My recently published book, To Become an Investment Banker helps people figure their way into the industry. I am the type that wants to create a fortune 500 company not run someone else's, however, if that is your goal then you can absolutely achieve it. At each stage I just question myself: why am I doing this? and I assume you will do the same. For me, helping other people is important to me. You can decide why you want to do what you want to do. It's good that you are thinking about it now, it shows you are a good planner. I wish you every success, Girl Banker