The terms- investment bankers and stockbrokers are often used interchangeably used, however, they are starkly different from one another in terms of functions, responsibilities, and salaries. These job roles are both similar in terms of quite a few aspects like teamwork, attention to detail, proficiency in accounts or mathematics, and efficient customer service.
However, in terms of services provided, a stockbroker is different from that of an investment banker. While a banker provides services that range from loans, opening accounts, credit lines, enabling seamless payments for banking clients and more, a stockbroker is in charge of investments, executing taxes on behalf of their clients, recommends portfolios and more.
An investment banker is a person responsible for various duties that include, helping clients in raising in the capital market by selling equity or issuing debt. They also often advise clients on various opportunities for investments, helping them with M&As (mergers and acquisitions) and more.
The two most important jobs they perform are, selling equity in a company and issuing debt. The whole idea is to raise money for clients. Selling equity in a company includes the involvement of an investment banker courses since he is the person, clients approach when a company holds an IPO (initial public offering), which means the company opens up for selling stocks to the public.
Since a lot of companies are actually judged on the basis of their IPO performances, companies seek the assistance of investment bankers, who in turn help them line investors and more.
The second most important duty includes issuing debt, which means the process of selling bonds to interested investors. Companies looking to raise capital often have difficulty in finding the right investor who has a lot of money to invest. They often resort to an investment banker, to help them with the structure of the bonds, and also look up and prepare a potential list of investors to approach.
A couple of other heavy-duty functions investment bankers have to perform are, helping clients with investment ideas and opportunities, helping broker M&As and more.
Stockbroker- roles, and responsibilities
A stockbroker is the liaise between various stock traders, investors, and brokerage firms to sell stocks or conveying orders that need to be bought. He also is responsible for managing and servicing his client portfolios, developing new business, or even trading for a client. In certain situations, a stockbroker may also act as a financial advisor since he is in charge of buying and selling stocks on behalf of his clients.
It helps if a stockbroker has a friendly and outgoing personality as his job involves a lot of interaction with clients or other public. A marketing or sales persona usually helps.
Education and earnings of a stockbroker
To pursue a career in this venue requires a college degree, preferably in the field of business or finance. There are also certain other requirements to qualify as a professional stockbroker which includes passing relevant examinations.
The earnings of a stockbroker are largely dependent on commissions that he earns from the tradings. The overall income of a stockbroker may go up to six or seven figures for larger pension fund accounts or institutional portfolios.
Education and earnings of an investment banker
An Investment Banking Courses, it is highly essential to have a graduation degree in finance, accounting, economics or mathematics. While the education requirement does not essentially entail an MBA, a management degree in finance or other related fields actually help.
While a degree in finance, economics, and accounting help in forming an academic base, an investment banker needs other skills to excel, which include hunger for hard work, persuading capabilities, and a great sense of work ethic. The first few years may often be difficult, in terms of finding newer clients, forming connections with them or even from the financial aspect.
An investment banker can earn anywhere up to $96,000 in a year. Bonuses, commissions, and cuts can of course increase this figure to a certain extent.
An investment banker may earn somewhat more than a stockbroker, however, this also depends on the number of years of experience, his educational qualifications and more.