The lucrativeness of a career in investment banking is known to many, especially the people who belong to a finance background. Famous for its fancy work and skyrocketing salaries, investment banking is a dream job for countless individuals who aspire to build a successful career and what can attract more success than an investment banking career.
Presuming that you were a finance student, I am pretty sure that you must have thought of being a part of IB or somebody in your family must have surely suggested you to do that. So, you can imagine the popularity of this field as every second person thinks that being an Investment Banker is one of the best career moves one can make in their lives.
Being a complex subject, though numerous people talk about investment banking but are not really sure of what it exactly means. So, here I am, giving you a gist on Investment Banking.
Investment Banking – Meaning
As a matter of fact, even finance students do not have much of an idea of what investment bankers do. Though they take in all the theoretical knowledge of IB in classrooms, they don’t understand what actually happens on the field. So, to help them bridge this gap between what they learned in college and its practical application here is a description of the investment banking world. Hopefully, the readers shall now be able to make a more informed decision regarding building a career in Investment Banking.
First, you need to know that investment banks are not exactly similar to the banks where we open our savings and checking account. That is called a retail bank. Now, once you are clear with that, I can move forward to explaining the functions that are undertaken by Investment banks.
Investment banks lend a helping hand to corporations who are need of raising money. Fundamentally, when corporations are in a desperate requirement of buying or selling something, they associate themselves with Investment Banks that assist them in figuring out the ways to invest or obtain the funds that they eagerly need to get things done. Banks in this sector enable their clients to acquire funds in capital markets. Moreover, Investment bankers enact as financial advisors who sometimes guide companies through mergers and acquisitions.
The Incredible Worth of Investment Bankers
Investment Bankers are extremely valuable people inside the corporate world. If they had not been there, it would have been very tough for organizations to raise capital in an hour of need to serve their clients and customers. It is with the support of Investment bankers that most of the organizations are able to attain competitive advantage and reach a strong position in the market.
The Exorbitant Salaries of Investment Banker
One of the top reasons for professionals to be enticed towards a career Investment Banking is the high salary that bankers in this domain get. In actual fact, a freshman right out of college can be offered as high as $100,000 of remuneration in the IB realm.