Hi readers! this is our new article on investment banking. Our research teams understand the need of the students and have come up with this article in which we have tried to give relevant information about the topic and aspects related to it. Read the complete article below.
What is investment banking?
Investment banking is a distinctive banking operation that aims at generating capital for an individual or any company. It works in terms of assisting as a consultancy where an investment banker advice their clients on how they manage or upgrade their finance. They also advise their clients on managing real estate debt, funds, and Equity Funds etc. Investment banking acts as a medium in terms of loss and encourages new form to go public for better stability. This is done by buying and selling of shares to the public further taking the commission in each share. It also provides support to companies by connecting with alliances and acquisitions and provide services like market making, foreign exchange, fixed income instrument, commodities, and equity security.
Making Investment Banking as a Career
To become an investment banker one need to have strong mathematics skills and must possess a graduate degree in finance, mathematics or accounting or any other relevant stream. Investment bankers go through an intense training where they go through the training and then start their career as an analyst. During their training, they develop their marketing skills and understand the market risks. They also learn about the financial and modeling account and develop their communication and presentation skills. To get in investment banking one should have any one of the following certification:
- Chartered Financial Analysts Certification– it is a well-known finance certification in which is given by chartered financial analyst institute. To get this certificate on the need to qualify CFA examination which is an aptitude test based on financial knowledge.
- Certified Public Accountant– it is an advanced accounting certification given by American Institute of Certified Public Accountants to the professionals of the finance and accounting industry.
- Financial Modeling Certificate-This certificate in acknowledged in the finance industry that gives approval that a person is expert in creating financial models to analyze the financial status and possibilities of investment. This can be done by studying past record of a company or an individual.
- Financial Risk Manager certification– This certification holds a lot of value in the industry as the course is well laid off upgraded with new possibilities in which a person learn about managing financial risk through quantitative analyzing.
A graduate can start their career as an investment analyst after gaining experience of two-three years a person will be promoted to associate level. Candidate having MBA degree is eligible to apply directly for associate level. After three or 4 years a person is promoted to vice president and last step is directorate level.
What is the salary in investment banking?
A basic salary of an investment banker is 9lakh per annum. The salary includes a bonus and with the experience, one can earn around 1 to 2 lakh per month.