I am sure that in today’s well-connected world you must have heard names like Morgan Stanley, Goldman Sachs or at least the very famous Bank of America Corporation. So, what is the common point that links these three establishments?
They are the most successful investment banks in the whole world and today in this article, we are going to discuss what these banks do and how lucrative is it to contrive a career in this field.
The Investment Banking Function
Investment Banking is referred to as a financial service that is offered by investment banks to companies who are in need of capital which is raised by putting securities on sale or else underwriting the allotment of equity shares. So basically, investment banks act as an intermediary offering financial services and are eligible for carrying out underwriting of shares, providing assistance during mergers and offering advice to clients on severe financial matters.
As a matter of fact, it is not only the large corporations and government entities that can avail the services of investment banks, but, individuals along with small & medium-sized enterprises are also given the privilege to take financial help from the retail divisions of these banks.
Other acts of assistance proffered by Investment Banks
There is a range of other services that investment banks undertake which are:
- Developing new kinds of securities
- Helping out investors as to which security to purchase
- Brokering trade along with equity deals amongst clients
- Investing money in potentially remunerative projects
The Growing intensity of the IB industry
Believe it or not, investment banking is not that difficult as it has been hyped to be. If I may use an analogy to explain this, IB is quite similar to real estate, however, here you sell investment opportunities instead of property. Investment banker gathers people who are hunting for investment and the ones who are seeking projects to invest into.
Nevertheless, this world of corporate financial advisors is always facing altering dynamics and is overloaded with competition which forces investment banks to diversify the work that they do in order to become more useful to companies and persons. From arranging for finance to tackling with risk management to carrying out research analysis, there are tons of other new things that investment bankers are doing these days.
Careers in Investment Banking
There is a high demand for IB jobs as every other finance student aspires to be an Investment Banker. The lives of investment bankers are tempted due to the large salaries, the fancy lifestyle and the social status that they enjoy.
And, this has given a great boost to the industry that offers Investment Bank certifications. Experts say that the most convenient way to get into the realm of IB is by earning a certification for Investment Banking. Especially, when there are such reputed companies offering well-framed certifications that not only provide theoretically but also the practical knowledge that shall help you demonstrate your mastery of this sector.