The remunerative space of Investment Banking has been attracting utmost attention from professionals keeping an eye on lucrative jobs that this field of work has to offer.
The Know-how of Investment Banking
The primary function performed by Investment Banks is to act as an intermediary between organizations that are aiming to raise capital through the issuance of securities and individuals who wish to acquire securities in exchange for money. And, the people who make all of this happen are referred to as Investment Bankers who, by the way, lead an incredibly sumptuous lifestyle as they are one of the most generously paid professional in the financial sectors.
So, what do you think these professionals do to deserve an inflated remuneration?
Investment bankers act as advisors to companies on the type of securities that should be issued (for example, stocks & bonds), the methodologies to pursue selling those securities along with the precise price that they should be sold for.
Also, they assist investors in the placement of securities, a procedure which is termed as underwriting. Apart from working with private as well as publically traded firms, investment bankers execute underwriting activities for municipal bonds together with other kinds of debt securities.
The job profile of an investment banker goes way beyond these company finance related activities as they also get involved into projects including company mergers & acquisitions by offering advice along with other crucial services to a party on any one side of the transaction.
Considering the seriousness of work that investment bankers carry out, there isn’t a need to say how tough it is to earn an investment banking job. The career path of IB is a rough one with a plethora of hurdles to cross in order to reach the final destination.
The Pathway to an Investment Banking Job
The way to a successful investment banking career mostly begins with taking up an internship with a genuine, well-known investment bank. Though, there is no compulsion to do so, undergraduate students who intern for banks are given more preference during entry-level job interviews.
Once you graduate and earn a bachelor’s degree, it is advisable to fetch the position of an investment banking analyst who conducts research and prepares analytical reports for assisting senior managers with their work. In the initial stages of your career, it is essential to building up your work experience in the first few years, so working as a financial analyst at a bank, wealth management firm or hedge fund can help you do that.
Now, to move from an analyst’s position to a more senior level post of an associate investment banker, it takes a strong track. However, if you have pursued a master’s degree in finance and possess a solid resume, then you can be eligible for this position even without having some years of experience in an investment banking job.
In most cases, newcomers in the IB industry are provided with effective training at least for two months. This way, junior associates get the chance to participate in crucial aspects of IB and make themselves capable enough to reach higher positions.