Forage puts students first. Our blog articles are written independently by our editorial team. They have not been paid for or sponsored by our partners. See our full editorial guidelines. Show Investment banking is the division of financial services that works to raise money for individual investors, large corporations, and governments. Investment banks provide underwriting services to help clients raise capital and complete mergers and acquisitions (M&As). Essentially, an investment bank is a middle-man for big, complex financial transactions, and investment banking facilitates these transactions. What Investment Banks DoLarge investment banking companies, middle market, and boutique investment banks provide investment banking services, such as:
Investment banks are typically split into two main functions: a buy side and a sell side. The buy side is mainly concerned with offering investment advice, like helping a company buy another company or helping an institution decide where and how to invest its funds. The sell side facilitates selling securities, or tradable assets, like stocks, bonds, and options. Bank of America Investment BankingLearn what it takes to be an investment banker at Bank of America with this free job simulation. Avg. Time: 5 hours Skills you’ll build: SWOT analysis, financial analysis, M&A screening, debt capital markets, financial modeling, discounted cash flow analysis Careers in Investment BankingInvestment bankers are the most well-known roles in investment banks, but many other careers exist in investment banking. These jobs help ensure the bank can accurately, safely, and efficiently raise capital for companies and governments. Some careers in investment banking are: Investment bankers Investment bankers raise capital and advise financial decisions — they work with clients to underwrite securities, source and organize M&As, and create financial models to inform their client’s decisions. Brokers Brokers act as intermediaries between buyers and sellers. For example, in investment banking, they aid in finding investors to buy securities. Actuaries Actuaries analyze the risk involved in financial decisions and make predictions about how various situations could affect a company’s finances. Accountants Accountants track and report a company’s financial performance and business transactions. Investment managers Investment managers advise clients on how to invest and manage their portfolios to maximize returns. There are a variety of other career paths in investment banking that aren’t finance-specific, though. As with any large organization, investment banks need support staff like engineers and information technology specialists to keep things running smoothly. Investment banks also need office managers, secretaries, and assistants to facilitate office workflow. \>>MORE: Learn if a career in investment banking is right for you. How to Get Into Investment BankingEducation and CertificationsMost careers in investment banking require at least a bachelor’s degree, and having a degree in finance can be beneficial — finance degrees can offer an excellent foundation for the economic concepts you’d be handling in an investment banking career. Investment bankers, in particular, may also need a Master’s of Business Administration (MBA) to rise up the ranks. Beyond education, many investment banking careers require or benefit from having specific certifications. For example:
LicensingLicensing is also crucial in many finance careers because giving financial and market advice is a regulated profession. For those in investment banking, most of the licensing requirements are facilitated by the and the U.S. Securities and Exchange Commission (SEC). These organizations provide exams and licensing in areas like:
When working in an investment bank, you may be encouraged or required to take any number of FINRA exams to ensure you know your job’s rules and regulations. JPMorgan Investment BankingSet yourself up for success in an investment banking career with JPMorgan's free job simulation. Avg. Time: 5 hours Skills you’ll build: M&A screening, company analysis, DCF, financial analysis, financial modeling, communication, presentations SkillsA finance degree and certifications can be helpful, but they aren’t the end-all-be-all for working in investment banking. Much of the work investment banks do daily is based on hard skills and can be learned! Some of the most valuable investment banking skills include:
\>>MORE: Applying to investment banking roles? Download our free Superday guide below for exclusive insights on how to prepare for and ace these interviews. You must log in or sign up to view this content. Login Sign up Learn the skills you’ll need to get hired in investment banking with Forage’s Investment Banking Career Path. Image credit: spotmatikphoto / Depositphotos.com McKayla Girardin is a NYC-based writer with Forage. She is experienced at transforming complex concepts into easily digestible articles to help anyone better understand the world we live in. |