Investment banking is a well-known financial profession that requires a high level of analytical, mathematical, and critical thinking abilities. Many investment bankers rely on their financial knowledge, ambition, hard work, networks, and expertise to succeed in this industry. Starting with a top-notch education, several crucial measures are needed to prepare for a career as an investment banker. This article will discuss investment banking, the work these individuals do, and how to become one if you decide this is the right career path for you.

What is an investment banker?

Investment bankers provide financial services to assist businesses and governments in raising funds through the issuance of stock or borrowing. They serve as the intermediary between investors and private or public corporations. An investment banker would provide financial guidance and consultation on what sorts of securities, such as stocks and bonds, to issue, when to issue them, how to issue them, and what price to set for each asset. They would provide services and recommendations to investors to purchase those securities. An investment banker serves as a consultant and helps clients in obtaining financing from the capital markets so they can grow their companies. Investment bankers also help with mergers and acquisitions and municipal bond underwriting.

What does an investment banker do?

Many of the financial operations involved in investment initiatives that businesses engage in are handled by investment bankers. The quantity of fees that your clients pay determines your profits. Since investment banking is a global profession, you could deal with clients from different countries. You could need to adjust your work schedule to account for different time zones. Investment bankers frequently put in long hours in a stressful setting. Although the task is demanding, it can result in very significant earnings.

These professionals execute a variety of tasks, including:

• Collaborating with businesses, groups, or other organizations to raise public or private capital through the issuance of securities, the underwriting of municipal bonds, or equity and debt offerings
• Guiding businesses on the securities they should issue to investors
• Taking charge of initial public offerings (IPOs) and producing the necessary paperwork.
• Coordinating with financial regulatory organizations, such as the United States Securities and Exchange Commission (SEC), on essential legal and compliance procedures
• Choosing initial stock prices that entice investors to make investments in businesses to raise money for expansion and development
• Coordinating purchases and mergers, including creating financial models to evaluate and support the acquisition or merger.

How to become an investment banker?

To enter this field, you typically require a bachelor's degree or higher in a discipline connected to finance; however, there are many ways to advance and improve your work abilities. The normal route many investment bankers pursue is outlined in the following phases.

Get your bachelor's in finance or a closely related subject

The top colleges and universities in the world are used for enrollment by investment banks. New investment bankers in the United States are frequently recruited from Ivy League universities.

First, focus on a finance major while earning a bachelor's degree from a recognized college or university. Accounting, economics, mathematics, analytics, corporate finance, business administration, and data analytics are useful academic specialties for aspiring investment bankers.

Regardless of your chosen degree, investment banking will require you to have strong math and analytical abilities and a solid grasp of economics and how it influences corporate finance.

Go for an advanced degree

Investment bankers often earn a master's degree in finance, such as business administration, corporate finance, or a similar financial field. Although you can start in this industry as a financial analyst at an investment bank, many employers choose graduate degrees for associate bankers and other mid-level positions.

Find out which graduate programs have a high hiring rate for their graduates by doing some research. Take advantage of the strong networks and internship opportunities they already have. You can still earn a Master of Business Administration or a degree in advanced mathematics from a lesser-known program, but it might not be as striking to potential employers.

Secure an Investment Banking Internship

Students and recent graduates can use internships as a route to full-time work in almost any profession. Investment banking is similar to that. You can try out your selected field, learn about the culture, gain job experience, and surprise future employers by participating in an internship. That’s how an investment banker can start his career.

Register with FINRA and get certified

You must register with the Financial Industry Regulatory Authority (FINRA) as a bank representative as soon as you begin your employment as an investment banker. You must pass a particular exam based on your area of competence to be eligible for registration. Additionally, you can seek extra qualifications like the Chartered Financial Analyst (CFA) designation, which requires passing a test and completing the CFA program.

Participate in events and build networks

You can register for informational workshops through your careers service, and at recruitment events, you'll have the chance to meet with employers. Online virtual chats can also give you a taste of what working as an investment banker might entail daily.

Investment bankers invest their time through selling. They find enormous sums of cash and persuade individuals to donate it to them. They are the driving forces behind Fortune 500 company mergers and acquisitions, private company initial public offers (IPOs) with sky-high valuations, and other high-finance transactions that result in exorbitant costs. Networking is an essential component of the profession, possibly even more so for individuals looking to break into the industry.

Advance your career

You will have opportunities to develop into higher-level positions as you gain more experience working in corporate finance and investment banking. An entry-level investment banker, for example, can go up to management positions like vice presidents or directors, where they'll be in charge of overseeing analysts and associates under them.