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Wednesday, 6 January 2016

What The Job Of An Investment Banker Entails

By Larry Mitchell


Investment banks refer to financial institutions that help governments, corporations, and individuals to raise financial capital by underwriting or acting as an agent of the client in issuing of securities. These banks are contrasted from commercial and retail banks in that they do not take deposits. An investment banker (IB) is the person who works in the investment banking sector or in a division of a large bank that offers the aforementioned services.

Various degree programs can prepare one to work as an IB. Some of the most common courses include finance, business, and accounting. Many job positions usually require a bachelor degree for one to qualify. However, for higher positions, one may need to have a master degree in finance or business administration among other courses. Employers prefer programs in business administration because they provide students with actual field experience.

A lot of emphasis is placed on understanding of business ethics and proper professional conduct by undergraduate and graduate programs. Titles such as floor broker and financial managers may also be used to refer to individuals who finish training. Many areas are covered during training including principles of taxation, accounting, investing, and corporate finance. Training is offered to people who join companies at entry level. For those with advanced training, they have greater opportunities for being promoted and they usually enter companies at the position of associates.

These professionals have a very bright future. Job have been reported by the US Bureau of Labor Statistics to grow by 11 percent between the years of 2012 and 2022. The expansion in jobs will happen in 3 major sectors, financial, commodities, and securities. Retiring baby boomers are expected to create demand for these workers as they retire from work.

The duties of these bankers are very many, but typically revolve around creating connections between business in need of financial support and investors. They assist private corporations in going public by having their IPOs structured. IPOs undergo through thorough scrutiny and it is the work of these professionals to ensure that the company passes them. Another specialty of these professionals is in mergers and acquisitions. Companies that intend to merge or buy other companies need the advice of these bankers on structuring the deal. They also need advice on analyzing profits or losses and developing detailed agreements.

Most work hours are spent on consultation with clients in the office, on phones, or outside the office. Other major duties related to work include creating reports, maintaining data in spreadsheets, and doing research. Occasionally they may be required to do analysis of data and offer professional advice. Sometimes they also spend time out of the office to meet new clients and to build industry relationships.

As it can be seen, these individuals are usually very busy. Once they are in the office they rarely get time for other things. They work overtime and often have to break from their weekends of holidays to attend to work or clients.

The annual salary of these bankers was 102, 510 USD in 2013. Besides the basic salary, they also pocket commission of products sold. Those that hold higher positions are likely to earn more because they are more experienced.




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