Preamble:
Are You Ready for an Exciting and Rewarding Investment
Banker Career?
The lucrative,
prestigious nature of investment banking job makes this a highly desirable and
competitive field. If you have an aptitude for finance, a reasonable tolerance
for risk, outstanding communication skills, and sharp analytical and
mathematical skills, you’ve got the basics required to explore opportunities in
the field. Add in a healthy dose of self-confidence, motivation and
competition, and you’ll be primed for the exciting world of an investment
banker!
Just as banks are at
the center of the global economy, investment bankers are key to structuring the
financial deals that facilitate business operations and keep the economy moving
forward. These highly-skilled, well-paid professionals advise companies on
issuing stock and configuring stock offerings.
What is Investment Bank (IB)?
A financial intermediary
that performs a variety of investment services, including underwriting, acting
as an intermediary between an issuer of securities and the investing public,
facilitating mergers and other corporate reorganizations and also acting as a
broker for institutional clients. Finance dictionary.
Core investment banking activities:
Investment banking
has changed over the years, beginning as a partnership form focused on
underwriting security issuance, i.e. initial public offerings (IPOs) and
secondary offerings, brokerage, and mergers and acquisitions, and evolving into
a "full-service" range including securities research, proprietary
trading, and investment management. In the modern 21st century, the SEC filings
of the major independent investment banks such as Goldman Sachs and Morgan
Stanley reflect three product segments: (1) investment banking (fees for
M&A advisory services and securities underwriting); (2) asset management
(fees for sponsored investment funds), and (3) trading and principal investments
(broker-dealer activities including proprietary trading ("dealer"
transactions) and brokerage trading ("broker" transactions)
In the United
States, commercial banking and investment banking were separated by the
Glass–Steagall Act, which was repealed in 1999. The repeal led to more
"universal banks" offering an even gre
