Investment banking is a broad term that refers to large financial institutions that help companies and governments raise capital through activities like underwriting and acting as an intermediary. Investment bankers provide financial advisory services on IPOs, mergers and acquisitions, bond issuances, etc. They work long hours in a high stress environment but are compensated with high salaries. Major investment banks include Goldman Sachs, JP Morgan, Morgan Stanley, etc. The key roles in investment banking include analysts, associates, vice presidents and managing directors.
Common Services Provided by Investment Banks
Investment banks provide services like: 1) Underwriting – Helping companies issue equity or debt to raise funds 2) Mergers and acquisitions – Advising companies on buying or merging with other firms 3) Sales and trading – Buying and selling securities and generating trading revenue 4) Equity research – Producing research reports on public companies to provide recommendations to investors 5) Wealth management – Managing investments for high net worth individuals
Important Roles in an Investment Bank
The main roles are: 1) Analysts – Entry level, focus on financial modeling, due diligence, preparing presentations 2) Associates – Work on executing deals, interact with clients 3) Vice Presidents – Manage teams and oversee various transactions and deals 4) Managing Directors – Most senior bankers, bring in business and manage key client relationships
In summary, investment banking is a prestigious but demanding sector focused on helping companies raise funds and advising on major transactions. Key roles range from hard-working analysts to senior-level managing directors responsible for landing big deals and managing client relationships.