What Is An Investment Bank
Investment banking is considered to be a financial mechanism which has much complexity. A financial mediator that performs different varieties of tasks is called as ‘Investment Bank’. These banks are mostly specialized in a big and composite financial transaction. Various projects and business entities are served by these banks.
They act as a financial advisor or agent for institutional clients. Also, it can be described as the special area of banking tasks that helps companies to increase capital and provide advisory to them. JPMorgan Chase, Citigroup, Bank of America & Deutsche bank is some of the examples of investment banks. There are investments banks dedicated to only individual customers also who have retail operations.
How Does An Investment Bank Earn
Investment banks buy all the desired shares at a price computed by the experts and resell them to the public. Also, sometimes sell the shares on behalf of an issuer authority and earns a commission on each share.
Consider a company A who is buying a different company that is X. A company has does not have any idea about the company X like is it worth buying and how they can benefit in terms of generating revenues. In these kinds of situations, investment banks come into action which goes through a process to check about the values of company X, it does the documentation part and advises company A the correct time of buying company X.
An investment bank in this situation is advising the buying side but there can be vice-versa of it also. They can even help to sell a company like X in this case. The bigger the deal would be, the more the commission investment bank would earn.
How to get a job at Investment Bank?
It is tough to get into investment banks due to large applicants and very few openings. It is seen sometimes that the ratio goes to 100:1 of applicants and openings. If you want to get entry into an investment bank you can enter mainly through two job roles that are analyst and associate.
In investment banks most common job roles for junior, mid-level & senior roles are stated below:
4) Vice President
5) Managing Director
The quality traits that analysts or associate working in IBD of Investment bank are :
· Polished & Presentable
· Highly ambitious
Investment Bank Course & Certification
To start in the areas of Investment banks one should get a good understanding of accounting principles and also excel including basics things like formulas and functions. Then you can start with financial modelling which is the primary things task in an investment bank daily. There are several online courses and certifications provided by Udemy, Coursera & Imarticus and other institutes. They offer courses free of cost and also paid online course in different domains to help people to make a career in Investment banks that is often done by CA, MBA professionals, etc.
There also PGP certifications which are done under investment banking and capital market. There is training and placements assistance also provided by the institutions. If you enrol in Imarticus certification on certified investment banking operation professionals you would be given training and also placements assistance. It is a 180-hour certification program. The average placement which is committed is of 3-8LPA.
Some of the popular courses that are present online are:
· FLIP - NCFM: Equity Research with Financial Modeling
· FLIP - NCFM: Investment Banking Operations International
· FLIP - NCFM: Issue Management
· PE, M&A, and Structured Finance
· Research Analyst with Financial Modeling
· Technical Analysis
Also Read: Different Types of Investment Banking Jobs