What Do Investment Bankers Actually Do?

What are Investment Banks?

Investment banks generally help guide and facilitate large/complicated financial transactions. They may provide insight on structuring a sale, saving the company large amounts of money by maximizing the benefits of financial deals. In addition to this, investment banks write new debt and equity securities for all types of corporations. In the huge world of finance, investment banks play an important role.

Role of Investment Bankers

Put simply, investment bankers are individuals who aim to raise money for large corporations or banks through underwriting (a form of investment in which an individual takes a financial risk for a fee through loans, insurance, and investments) or through multiple securities. They mainly work for large companies or organizations to help them manage a large amount of money. These specialists help facilitate complicated transactions as well as in catching bad financial decisions. Organizations can end up saving tens of thousands of dollars.

Key Skills to Learn to Become an Investment Banker

Creativity: Strangely, in a financial setting that often seems rigid and full of rules, creative individuals who are not afraid to think outside the box find success. If you consider yourself creative, investment banking could be for you.

Open-Mindedness: I know what you're wondering: how does being open-minded help me in a financial setting? Well, our world is becoming increasingly interconnected, and individuals who are fluent in multiple languages, knowledgeable in social affairs, or even just curious about the world are in high demand.

Communication: Being able to deal with difficult clients and reaching out to grasp a client's desired outcome is crucial for investment bankers to work with a different organization. Good communication skills are essential to understanding unique situations. At the end of the day, investment bankers get paid based on client perception, so impressing and retaining clients is in their best interests.

Conclusion

Overall, investment banking is an exciting, fast-paced, and high-paying career that many young students are getting more curious about. Considering a business career? Check out our Instagram page (@nextstepbusinessofficial) and subscribe to our newsletters to learn more about our exciting upcoming events!

MLA

Kagan, Julia. "Investment Banking: What It Is, What Investment Bankers Do." Investopedia, www.investopedia.com/terms/i/investment-banking.asp.