An investment banker works for specific kind of financial institution. This type of banker will work at a bank or financial institution whose major focus is on raising funds for a variety of different types of entities including companies and governments. Investment bankers might also works for larger banks that offer other services, but have an investment banking division.
Job Tasks
Investment bankers help to raise money. They do this in a variety of ways. They might simply provide their expertise to companies to advise them on the best ways for them to raise equity capital or debt, according to Entrepreneur. In general, a fledgling or even an established company won’t be as knowledgeable in this area, because the company devotes itself instead to its business, the offering of certain products and/or services.
To raise money for a company or government, an investment banker might assist with the preparation of certain documents. These documents will explain the company’s value proposition that the investor providing the funds wants to explore before offering financing. The banker will also make sure that any government regulations are respected in an investment agreement. It happens very often that entrepreneurs violate such regulations when financing their business ventures without even knowing about the regulations. This can cause cumbersome consequences in the future for fledgling business ventures.
Necessary Skills and Capabilities
An aspiring banker interested in working in investment banking needs to have a well developed intellect in terms of analytical and mathematical capabilities, according to Investopedia. Such an individual also needs to acquire a strong understanding of economics and financial markets. Curiosity and ingenuity are important characteristics of those who work in investment banking as well. It’s important that those who are in investment banking are highly disciplined, because they tend to work long hours and must have a strong ability to focus. While this type of banker may work long hours, he or she will also be rewarded by an enormous earning potential. A typical mid-career professional in investment banking should be making over $300,000 a year.
Practical capabilities that investment bankers need include strong computer skills, especially with programs like Excel. Investment banking is about crunching numbers, and those who work in this area often need to analyze a lot of data through practical and automated means like Excel charts. They also often need to present their findings with software tools like Excel and Powerpoint.
Qualifications
A banking professional working in investment banking will typically have an undergraduate degree in a discipline related to banking or finance. Other possible majors include mathematics, accounting, or engineering. Occasionally, an individual working in investment banking has an unrelated major and bridges over into banking from another field. An MBA degree is a highly valuable credential for someone in investment banking.
In addition to academic accomplishments, the education of investment bankers also often includes an internship or some sort of on-the-job training. However, investment banking firms typically recruit on university campuses, so many bankers of this sort will be hired right out of university.
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The investment banker is an important professional when it comes to funding business ventures for private companies, government, non-profit organizations, and many other entities.
