Investment banking is a division of financial institutions and banks that handles transactions for corporations, institutions, commercial and non-commercial banks, as well as state and federal governments. These financial companies provide sound stock and mutual fund advice. It is primarily a financial advisory industry that provides investment advice to investors.
What are investment bankers’ responsibilities?
The primary function of investment bankers is to advise and help customers in making investment decisions. This means that investment bankers primarily act as advisors and brokers for their clients, assessing their needs and suggesting acceptable solutions. Following the customer’s decision, the bankers must negotiate transactions and mergers while ensuring that their client’s best interests are preserved.
Job Domains and Careers in Investment Banking
The following is a list of services provided by investment banking organisations in broad categories:
- Business Finance
Corporate finance is the division of a company that deals with financial and investment decisions. Corporate finance’s main purpose is to maximise shareholder value through long- and short-term financial planning and the use of various tools. Corporate finance encompasses anything from capital investment choices to investment banking.
- Mergers & Acquisitions (M&A)
The team is in charge of delivering strategic client support as well as serving as an advisor during the agreement’s valuation, structure, and negotiation. For investment bankers around the world, this is one of the most lucrative areas.
- Financial Markets
The team advises the client on the appropriate time, valuation, and issuance form for both stock and debt markets. Frequently, investment banks aid their clients in raising funds in the market. This requires a detailed understanding of the stock market as well as its volatility.
- Trading and Sales
The team is in charge of executing trades in shares, currencies, bonds, and other instruments on behalf of customers with other institutional investors and traders. It’s one of the most in-demand jobs in investment banks, and it requires a deep understanding of financial instruments, capital markets, options futures, and derivatives.
