What exactly is an investment banker? That is the question that many people ask when they hear those two words. The answer is actually a lot simpler than it would seem. Investment banking has many different definitions that describe it. According to Career information center 9th edition, an investment banker is someone who arranges and negotiates large financial transactions. When learning about investment bankers it is important to know background information about investment banking, what must be done to become an investment banker, and what an average life is like for an investment banker.
First, an investment banker works for an investment bank. The definition of investment bank according to The New Oxford American Dictionary is, a bank that purchases large holdings of newly issued shares and resells them to investors. A simpler version of this is pretty much that an investment bank buys stocks from new companies and sells them to other people when the company grows larger. Some people may confuse investment bankers with venture capitalists. The main difference between a venture capitalist and an investment banker is that investment bankers don't have funds that they can tap into; they need a whole group of people to do their work (www.entrepreneur.com). Becoming an investment banker requires thorough education and training.
Next, Education is a key part of investment banking. To become an investment banker it is required to have at least a bachelor's degree in business, but without an advanced degree the chances of getting hired are slim to none. Most investment bankers that get hired have a master's degree in business, although some people transfer in from other related fields such as finance, banking, or law (Career information center, 155). Job opportunities at prestigious firms such as JP Morgan are extremely hard to come by and only about 25 out of 1000 get in. Some firms will even have summer training programs for college students who wish to be investment bankers when they get out of college. Taking a training program will provide vital know-how about investment banking and will make jobs easier to come by. Another great way to increase chances of getting hired is to start making connections. According to Career Overview making connections is important because if the bankers accept you, you will most likely be accepted by the bank itself. Some ways to establish connections are to, attend conferences, hold informational interviews with companies, and talk with your school's alumni. When learning about investment banking it is important to know what an average life on the job is like.
Finally, Investment banking can be a stressful, but satisfying job. An average workday for an investment banker who is just starting out is 14 to 17 hours (Career information center, 155). Also, there can be many disrupted weekends and all night working exhibitions. Pretty much an investment banker devotes their life to the job. It may sound intense but the rewards are worth it. Fresh out of college, an investment banker with a master's degree makes around $85,000 a year. With a bachelors degree an Investment banker makes around $45,000 a year. Within three years of employment a master's degree graduate is earning well into the $100,000 range. Many investment bankers say that even thought it is such a hectic job; it is interesting and they love what they do.
In conclusion, Investment banking is a great career for a dedicated person, who is willing to work hard to be satisfied. The future keeps getting brighter for investment banks. Investment bankers are confusing to most people and it is very important to know a few things about them. It is important to know background information about investment banking, what must be done to become an investment banker, and what an average life is like for an investment banker, in order to fully understand what they are and what they do. So what do you think? Does an investment banker sound like and interesting job to you?
