If you’re a detail-oriented math lover looking for a career in the financial services field, you may consider becoming an investment banker. Investment bankers are specialized finance professionals who focus on matching businesses and government entities with the funding to carry out their operations. It’s their duty to assist organizations in making the right complex financial transactions to maximize the current investing climate. As the economy grows, the United States will remain an international financial epicenter with a large securities and commodities market. Increased restrictions placed on proprietary trading will create a high demand for investment bankers to help companies navigate complicated rules. The Bureau of Labor Statistics reports that employment of investment bankers will grow by 10 percent through 2024. Competition is intense though, so use the following job profile to decide if investment banking is right for you.
What Investment Bankers Do
Investment bankers provide advisory services for mid-sized to large companies who need to extra financial backing from investors. They recommend effective strategies for businesses to expand their operations in present economic conditions. Many investment bankers will provide initial public offerings (IPOs) to open companies for public investment. The banker analyze the company’s revenue, estimate worth, and follow the guidelines to become publicly traded. Investment banks then sell shares of the company’s stock to reap profit. Investment bankers may also lend a hand in smoothly completing corporate mergers and acquisitions. Handling the laborious paperwork required by the Securities and Exchange Commission (SEC) is their forte.
Where Investment Bankers Work
Of course, the majority of investment bankers are found underwriting securities for investment banks. Some of America’s largest investment banks include Goldman Sachs, Morgan Stanley, JPMorgan Chase, Wells Fargo, Citigroup, and Merrill Lynch. Investment bankers can also find employment in depository credit intermediation institutions, financial investing firms, non-depository credit intermediation companies, and private corporations. An increasing number of investment bankers are working for online securities and commodity brokerages too. Jobs are heavily concentrated in New York City, the capital of the stock market. Investment bankers usually work full-time, but one-third works beyond 40 hours per week. Traveling is frequent for investment bankers to work with domestic and international companies.
How to Become an Investment Banker
At minimum, investment bankers must hold a bachelor’s degree from a four-year college or university. Most aspiring investment bankers major in finance, accounting, business, statistics, mathematics, or economics. Gaining internship experience working with securities and commodities is strongly encouraged. Investment bankers must become registered with the Financial Industry Regulatory Authority (FINRA). Many employers will prefer hiring candidates who have completed a Master of Business Administration or Master of Science in Finance. If possible, pick a specialization in investment banking or corporate finance. Going the extra step to earn the prestigious Chartered Financial Analyst (CFA) credential can help with promotion. The CFA Institute requires having four years of experience and passing three arduous exams.
Related Resource: Credit Risk Management Analyst
Investment bankers are often glamorized for living luxurious lives with bigwig jobs on Wall Street. While it’s true that investment bankers earn a six-figure average yearly salary of $103,260 and lucrative bonuses, the job requires long hours with plenty of stress. Investment bankers are financial moguls responsible for connecting businesses with capital through the topsy-turvy stock market. Becoming an investment banker will give you the chance to coordinate large financial transactions for companies around the globe in virtually any industry.
