What are investment banks
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An investment bank is a specialised bank that is involved in different financial services. These are large companies who aid other companies with complex financial transactions. An investment bank takes care of all the processes like mergers and acquisitions, security transactions, Forex trading, etc.
An investment bank is also seen as an organisation that acts as a financial advisor. The investment bankers working in these companies are the agents of the bank who lead major financial transactions across all companies. Investment banks also provide these services to different individuals who need help with their finances.
What is Investment Banking?
Investment banking is related to the creation of capital for different functional needs of different entities. Investment bankers help their clients in underwriting debt and in also managing the purchase and sale of different securities.
Investment banking can only be taken up as a profession if you have a required knowledge base. One of the major aspects of investment banking is the formulation of different deals and helping companies in raising capital. A lot of companies also take the help of investment bankers to aid their investment decisions. It acts as a middleman between potential investors of the company who are interested in purchasing the stocks of the company and the company itself.
Types of activities managed by an Investment Bank
An investment bank performs a different set of functions. Some of these important functions are listed below:
- Acts as a financial advisor: Investment banks act as financial advisors who aid companies in looking for potential investors. On the other hand, they also aid several potential investors in finding the right investment. They act as a bridge between a company and the investors. They formulate financial strategies for all of their clients helping them in making major financial decisions
- Mergers and acquisitions: Investment banking plays a major role in the case of different mergers and acquisitions. They perform calculations to ascertain the net worth of the company which is to be taken over by some other company. These banks structure a fair deal which is agreed to by both the parties.
- Financial Research: Research plays a very important role in investment banking. Researches are being conducted daily to evaluate the financial positions of different companies. These banks manage major financial transactions therefore they must stay in touch with the ongoing market trends.
Getting your first job at an investment bank
Investment Banking is a specialised area of working. Therefore, before applying to any investment banking companies, make sure that you have the required technical skills which are required by the bank.
In case you are still in college and you want to go into the field of investment banking, make up your mind. You can opt for different investment banking courses which are available both online and offline. Given below are some of the important steps that will help you land in and investment bank.
- Start networking and build a resume: Networking and talking with people who are already in the investment banking industry helps a lot. Use this network to get yourself a job interview. You can use different platforms to connect with these professionals.
- Prepare yourself for the interview process: Your interview will cover different aspects of Finance. Therefore, make sure to brush-up all your concepts. Different technical questions might be asked.
- Master all the technical skills: Investment banking requires extensive knowledge about the technical aspects of the job. Therefore, make sure to train yourself and become proficient with some of the popular software like Excel
Investment banks hire in a very structural way. Try maintaining a good GPA and build your resume keeping in mind the skills which are needed to become a successful investment banker.
Also Read: Different Types of Investment Banking Jobs