Starter Guide to the Investment Banker

Investment Banker

The recent shifts in the global economy have been a product of industrialization and increasing demand for resources have led to the growth of new industries and an ever-increasing shortage of resources. ‘Development’ appears to put itself in the limelight and a need has arisen for capable individuals to take up careers that contribute to the investment of the economy in its industries, or interpret the various facets of this perceived growth and express how it is applicable to a given situation. As global markets increase levels of investment, demand for investment bankers’ expertise is expected to grow.

Education

The main problem faced by investment bankers is the competitiveness with which their peers conduct their business and instances where graduates from lesser reputed institutions are often not giving the same credit as someone with the same degree from a more prestigious college. Degrees such as MBA are highly sought after, as a result. However, backgrounds in mathematics, statistics, economics, and business are also widely accepted, although more infrequently. It is vital for an investment banker to be able to fulfill certain responsibilities by virtue of being educated to their required capacities.

  • They must be able to solve real-world, application oriented financial problems to negate losses and generate finance.
  • They should be able to apply theories, concepts and techniques while handling investment policy and strategy development.
  • They are required to analyze financial data such as interest rates and present findings.
  • They must be able to understand the capabilities of a given financial portfolio

Duties

The main task of an investment banker is to secure financial resources from investors by connecting them with one another, and the transaction occurs in the form of bonds or stocks. These individuals play a crucial role in helping private companies go public by structuring initial public offerings (IPOs). Mergers and acquisitions are under the jurisdiction of investment bankers as well. When companies are interested in becoming acquired, purchasing, or merging with another organization, they seek out the mergers and acquisitions experts. Investment bankers specialize in structuring these deals and analyzing gains and losses accordingly, for the sake of comprehensive understanding. They also play an advisory role where the main responsibility is to create spreadsheets, analyze data and compile regular reports.

Salary

Students are eager to take up investment banking roles right out of college as it enables them to start earning right away. A high base salary with aggressive bonus policies and incentives are a great lure for young, eager people who wish to be involved in meaningful work. The average annual financial services sales agent has an annual salary close to $102,000, with the best of these bankers being paid $131,000 annually. Most bachelor’s degree holders start out toward the lower end of the pay grade and increase their pay with additional experience and training.