What would you like to do?
What are the key roles of an investment banker?
He is like a crazy drunk money bitten by a red ant and chased by a swarm of bees....
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There are multiple periodicals and academic journals that are referenced by banking and finance professionals. These include Business Insider, The Wall Street Journals, Th…e Economist, and Journal of Banking and Finance.
For a first-year analyst, the most junior position, $80k-$120k (including bonus). It rises significantly year on year; and a good MD, the most senior 'normal' position, might …expect to earn $1-3MM. Group heads and C-level executives can earn much more than that. You should keep in mind however, that the majority of bankers finish after 3 years in the business, and probably only 5% become MDs.
They help companies get the best deal for mergers & acquisitions, buyouts, IPOs, debt issuances etc. On a wider scale, they help capital reach those who need from those who ha…ve an excess of it, and add liquidity to the market.
An Investment Bank is a financial institution that deals with raising capital, trading in securities, and managing corporate mergers and acquisitions. An Investment Banker de…cides where the money of the investment bank is best used/invested and then crafts the deal to use/invest that money. Let's say I sold ten houses and I have ten mortgages that are worth a total of ten million dollars when finally paid off in thirty years. I don't want to wait 30 years for my cash, so I put my ten mortgages in a bundle and will sell it for four million dollars right now. An investment banker might help someone buy my bundle (like a bank would), might buy my bundle for their investment bank itself (like an investor would), might buy the bundle for a client (like a broker would), or might help me sell the bundle (like a realtor would). Once real money has been turned into paper documents, the investment bankers buy, sell, trade, and broker those documents around.
Bulge Bracket (JP Morgan, Goldman, Morgan Stanley, etc.) Non-Officers: Analyst 1: $150,000 Analyst 2: $200,000 Analyst 3: $250,000 Associate 1: $300,000 Associate 2: …$350,000 Associate 3: $400,000 Officers: Vice President: Up to $1,000,000 Director: Up to $2,000,000 Managing Director: Up to tens of millions *Officers can make millions more if they originate lucrative deals and/or have key client relationships Non-Bulge Bracket / Second Tier: 1st year Analyst- $80,000 - 100,000 2nd year Analyst - $100,000 - 130,000 3rd year Analyst - $130,000 - 160,000 1st year Associate - $ 160,000 - 200,000 2nd year Associate - $200,000 - 275,000 3rd year Associate- $300,000 - 400,000 Vice President - $500,000 - 650,000 Senior Vice President - 650,000 - 800,000 Managing director 800,00 - the sky is the limit
About 3 years, maybe 5 max. There are 'career bankers', however the nature of the job makes them relatively rare.
Today, practically every young MBA student or aspirant wants to be an investment banker. A blue shirt, sleeves rolled up, a phone over each ear, dashing from one city to a…nother and working for names like Morgan Stanley or Goldman Sachs. While banks handle wealth, investment banks handle the wealth of companies, corporate houses, organisations, high net-worth individuals and even governments. No wonder, investment bankers earn fat pay checks with a lifestyle that is the envy of many. Wall Street is filled with high-energy, hardworking young investment bankers who spend hours hunched behind computers, poring over financial statements and churning out spreadsheets by the pound. Banks are a vital aspect of any economy. Their activities facilitate basic economic processes of production, distribution and consumption. They take care of people's savings; issue travellers' checks ; finance projects; act as executors and trustees; and extend loan and credit services. Count-less choices Most banks provide a range of financial services from banking services for individual customers to catering to the needs of corporate houses. Investment management is the primary activity of investment banks. They manage shares and capital formation of a company. They also manage capital market operations on behalf of the company, managing capital issues, portfolio management, underwriting, selling, and trading securities (stocks and bonds); providing financial advisory services, such as mergers and acquisition advice; and managing assets, international financing, public issue management and the buying and selling of shares. Investment banks offer these services to companies, governments, non-profit institutions, and individuals. As financial markets in India grow, investment bankers watch the stock markets with traders, trying to buy or sell big institutions a piece of a new stock while the markets are in session. Profile of I-banker As an investment banker, your work would involve advising companies on capital formation, mergers, acquisitions, investments and managing capital assets. You will have to liaison with businesses, governments, non-profit institutions and individuals. You will look into the financial aspects like advising a company or a client on financial transaction, selling and trading the securities, researching the company's background and the market before making any investments, etc. You also have to analyse and make recommendations to the company, based on the market and competitors. Initially, you may start as an analyst and be responsible for writing reports, maintaining spreadsheets, trading stock options, research, etc. You will need to involve yourself in an intensive study to find out opportunities to invest in profitable shares, debentures and other financial instruments. You need to have in- depth knowledge of money markets, the state of the economy and business and industry in general. Moreover, you will need to continuously involve yourself in extensive research on these subjects, and be up-to-date with the latest information. . Often, bankers specialise in a particular industry and follow its fortunes over the years. Some investment bankers handle the investment and control of a portfolio of shares, deciding which shares to buy and which to sell to gain maximum returns for their clients. In such jobs you have to be accurate in terms of business information as the investor will totally depends on your reports. It is for this reason that investment bankers are often shown as having sleepless nights and 24x7 work schedules. Wanted, B-school graduates This is a high-risk job, as your decisions can involve millions, and form the basis of many commercial decisions. Most foreign banks and financial institutions prefer management graduates from the premier management schools, or professionals in accountancy, (chartered accountants and cost accountants), finance experts and economists with postgraduate qualifications in finance, economics, financial planning, capital markets and so on. A Ph. D in Economics and relevant experience in the industry can also get you a good job. A preliminary on-campus interview assesses personality; aptitude, and academic merit. Those meeting the set stipulations must clear a final interview before appointment in a foreign bank. It is also possible to take banking as a special subject at some institutions, prior to applying for a position in a bank. There are also a few institutions that offer a BA in Banking, or a post-graduate certificate or diploma course in banking. Foreign postings Job opportunities for investment bankers, as the term suggests, is with investment banks, broking firms, mutual funds, financial services companies and other financial institutions. Although the action in investment banking is still largely centered in New York City and a few other money centres around the world, some of the leading investment banking companies, such as Merrill Lynch, Goldman Sachs, Morgan Stanley, etc, have offices in India, where transactions are conducted. Money matters Investment banking is among the most sought-after jobs because of the high salaries offered to those qualified. Those with MBA degrees from well-known institutes can expect to start on an average around Rs 9-2 lakh per annum. Many are also offereddollar salaries. With 5-6 years experience, you could earn Rs 12 lakh-1 crore pa., depending on the organisation and the position you would be working in. Skills set But everyone cannot become an investment banker You need to have the right abilities and aptitude to be successful in this job. Therefore to get into this field you need to have strong analytical and mathematical skills, be comfortable with handling numbers and have a tolerance for taking risks. The ability to take initiative, good networking skills and the ability to keep calm and work under pressure are other qualities that mark out a successful investment banker. You also need to have good inter-personal skills, and be able to work with others, as you will have to work in a team with people of different temperaments You must enjoy the fast-paced, deal-oriented work, and be prepared to put your personal life on hold, if necessary for the sake of your job. You also need to have a good knowledge of the business world and the latest market developments. Your success, therefore, will mainly depend upon your ability to communicate, willingness to travel, hard work and the number of profitable deals you clinch for the company. The impact of the economic reforms over the last decade has been most significant on the investment banking industry. Economic growth and liberalisation has opened up considerably large number of opportunities in various organisati ons like mutual funds, investment consultancy, broker firms, insurance companies, merchant banks, pension funds and other financial institutions. Moreover, the entry of foreign investment banks like Morgan Stanley, Merrill Lynch, Goldman Sachs, Jardine Flemming, and others has widened business avenues in banking and job opportunities have grown significantly. Training talk The pay and lifestyle offered by foreign banks can be matched by few other sectors, and there is tremendous prestige and glamour associated with them. Some of these institutions offering a one-year post-graduate diploma in banking: SNDT Women's University, Marine Lines, Mumbai. PVDT College, Mumbai. Other courses in banking and finance are offered at : Indian Merchants' Chambers, Churchgate, Mumbai. National School of Banking, Pune. Indian Institute of Bankers, University of Bombay. Institute of Bankers, London.
No specific degree is required. A look at the degrees of Investment Banking Graduates (UK & USA) 2007/8 shows that the intake spread significantly from Architecture - Zo…ologoy. This is not to say that some degrees aren't preferrably over overs. Clearly MBA's rank higher than an MSC or BSC / BA; and clearly a financial / economics degree ranks higher than than a History degree. The real question, is how do I become an investment banker? The answer is simple: 1. Know what you want. Investment Banking covers a huge array banking activities. Before you consider making any applications, I suggest you thoroughly research all these different activities and decide which one you are best suited to. 2. Acknowledge that there are certain things outside of your control. You can't mitigate for the fact you didn't get a 1st at Harvard or Cambridge and you can't mitigate for the fact that you don't have contacts in the cCty or Wall Street who can open doors to interview for you. All highly preferrable but not necessary. 3. Realistically Investment Banking, owing to the salaries & bonuses paid, is highly competitive and therefore you may have to set aside time for significant research, applications and interviews (if you are lucky enough to get one). Don't fret, it takes time. I would advise you choose no more than eight positions, make sure you become an expert on those positions, and then in the interview, do the job i.e. speak as if you are already in the position. 4. Read humorous books on the industry, personal tales about the industry and what people get up to. They may not be scientific (or even highly accurate in many cases) but they will certainly open up your eyes to a new world and get you reading about the industry in a non academic and easy way where by you can learn the lingo and the market phenomena. Good luck!
You dont need any specific ones. But you need a good degree. In maths, physics, finance etc. And to get a good degree you need good a-levels, like Maths, Physics, Englis…h or similar. Lots of maths and science helps. Dont bother with chemistry.
The short answer: no. The long answer: they are theoretically entitled to reasonable vacation, but it is considered a sign of weakness to use all your vacation time, and you w…ill not last long if you are not available essentially non-stop.
Investment bankers manage stock portfolios and investments for their clients, and help them make management decisions to make the most of their money.
The importance of an investment banker is actually the importance of what they do. They hold importance because of the services they provide to the economy and government. The…y provide advisory services for financial transactions such as mergers and acquisitions for companies. Without them there wouldn't be authorization to issue and resell new securities( stocks and bonds),therefore it wouldn't be possible for investment banks to help private and public companies raise funds for the capital markets which include both equity and debt.
In Stock Market
to sell at a higher profit to their clients....? They can be buying to collect on dividends, lower cost basis of stock they already own, diversify their portfolios, speculati…on and of coarse profit in the resale.
US bulge bracket banks like Citi, MS, JPM pay the same across regions.. so in Mumbai, a 2nd year analyst (thats what normally IIM grads get into) will earn smthgn like INR 40 …lakhs base and then you have 75-100% bonus.. at an associate level, it goes to INR 50 lakhs plus 85-120% bonus..
investment bankers profit from companies and governments by raising money through issuing and selling securities in the capital markets(both equity and bonds) An investm…ent banker is someone who issues and sells securities for large corps. and governments, helps investers purchase securities, and provide financial advice. They also help companies merge. Investment bankers typically work a REALLY long work week, averaging about 80-100 hours a week. They get big payoffs though, with the average salary ranging from $80,000-150,000 a year, not to mention the huge bonuses. An investment bank is a financial institution that raises capital, trades securities and manages corporate mergers and acquisitions, I know one Investment Banker and Company Adam Roseman from Arc China, You can also get more information from Arcchina.cn For a first-year analyst, the most junior position, $80k-$120k (including bonus). It rises significantly year on year; and a good MD, the most senior 'normal' position, might expect to earn $1-3MM. Group heads and C-level executives can earn much more than that. You should keep in mind however, that the majority of bankers finish after 3 years in the business, and probably only 5% become MDs. An investment banker looks for investors and advices them accordingly on the various investment opportunities and plans.
Investment bankers can generate revenues for their firms by the amount of money they bring in from their customers. By bringing in money, the firm will have more to invest.
This depends in which field of investment banking the lowest is an analyst averages about 25,000 the highest is the Managing Division or Head Division Manager 92,000 but under…stand if you have a degree and credentials in Islamic banking and the natures of this its not too uncommon to earn more. Associate averages 35,000 while a VP about 50,000 and directors 70,000 but this may vary pending the banks volume of business, and/or both global as well as Islamic bank. The percentage of commercial, corporate and High private wealth holdings vs general consumer holdings will also be key determination in the type of salary one should seek. Expect higher salaries with Islamic banking practices knowledge. As Islamic banking varies then conventional banking practices - the other areas with the highest salaries under the Islamic banking is commercial, private wealth priority investments and corporate banking. Not to mention Risk management in Islamic banking practices side. In Dubia there is actual two agents of banking going on global and Islamic standards understand both features and know how to interact with each is the edge needed for the highest salaries and it's a very competitive field especially with the largest volumes in wealth dealing with corporate, commercial and high private wealth.