How to Become an Investment Banker?

Investment banking is about helping businesses, governments, and investors with large and complex financial transactions. It is a demanding profession that requires a high degree of financial education and a great deal of analytical, critical thinking, and mathematical skills. Knowing more about this profession will help you decide whether you want to pursue it or not. In this article, you'll learn how to become an investment banker, learn what these professionals do on a daily basis, and answer frequently asked questions about the profession.

What is an investment banker?

An investment banker is a highly trained professional who provides a range of financial services to companies, governments, and investors. They help companies get business loans, issue stocks and bonds, set prices for securities, raise stock capital, allocate resources, negotiate mergers and manage investments. They are the link between private or public companies and investors. They would offer financial advice and consultation on what kinds of securities, like stocks and bonds, to issue, when and how to issue them and what price to set for each security. Many of them also help investors with services and advice to buy those securities. Some may even subscribe to municipal bonds and assist their clients in mergers and acquisitions.

What does an investment banker do?

The investment banker has a range of responsibilities related to the financial operations of various financial transactions and investment projects. They generally work in teams of CEOs, directors, vice presidents, employees and analysts, and each group cover specific industries or market segments. They often have to adjust their work schedule in different time zones to accommodate their customers and have very long working hours. Work can be stressful and they may face high-pressure situations. They usually perform the following tasks:

Research and analysis of reports and various market databases and collection of relevant information for financial decision-making.
Monitor current investment conditions, identify risks associated with specific projects and advise clients on their progress.
Perform daily business assessments, financial models, and financial ratio calculations to predict business performance.
Prepare presentations and proposals and identify benefits, risks and timelines.
Perform administrative tasks such as answering emails and phone calls, holding meetings and arranging travel.
Prepare, review, edit and submit survey reports, brochures, PPT presentations and transaction documents.
Issuing securities, subscribing to municipal bonds, and soliciting debt and equity to raise private or public funds.
Providing advice to companies in the field of issuing securities, managing initial public offerings, and determining the prices of initial shares.
Analyze, support and coordinate mergers and acquisitions to maximize value for our clients. • Ensuring compliance with regulatory and financial regulatory requirements.

What qualifications do I need to become an investment banker?

In general, you need at least a bachelor's degree in finance, economics, accounting, or business to get an entry-level position at an investment bank. With a master's degree or doctorate, you can improve your prospects. It can also help you improve your communication and interpersonal skills.

Is it difficult to be an investment banker?

Becoming an investment banker can be quite difficult due to the stressful and demanding nature of the job. Investment bankers often have to work more than 80 hours a week, follow strict rules and deal with high-pressure situations. You should have excellent knowledge of accounting, economics, finance, mathematics, statistics, data analysis and banking technology. In addition, they must have strong communication skills and a confident and outgoing personality to interact and build relationships with influential and very wealthy people.

How long does it take to become an investment banker?

It can take seven years or more to become an investment banker. After passing the 10+2 exam, it takes about three to four years to graduate. You can then pursue a two-year master's program. If you decide to pursue a Ph.D., it will take you another three to six years. Additionally, if you want to become certified, you can do so anywhere from six months to four years.