What is an Investment Banker?

Also known as: Investment Underwriter, Corporate Investment Banker, Institutional Banker.

An investment banker is someone who works in a financial institution or in a large bank's division that is involved in raising capital for governments, companies and other entities. They raise money by issuing and selling securities in the primary market and assist public and private corporations in raising funds in the capital markets (both debt and equity). They may also provide strategic advice to their clients on specific transactions such as mergers and acquisitions and other types of financial transactions.

What does an Investment Banker do?

An investment banker will offer a lot of banking services like other bankers do, except they deal with professional businessmen/women, entrepreneurs and investors. Their duties range from raising money, advising, underwriting, brokerage services, forex services, research, and asset management.

There are typically three areas of operation:

Corporate Finance

  • giving corporate clients advice with mergers and acquisitions, as well as helping them raise money from the debt and equity market

  • helps a company save time and money by determining the best strategy and the best place to raise debt or equity capitol. Most companies don't know how to go about this on their own.

  • prepares necessary documents in order to protect the company and the investor, and to accurately present the proposition for funding (called a 'private placement memorandum').

  • ensures all government regulations have been followed properly (as there are rules that most entrepreneurs are ignorant of, and this can come back to bite them in the future).

- buying and selling securities and commodities

Research Analysis
- analyzing and predicting the movement of stocks

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What is the workplace of an Investment Banker like?

Work is exhausting with 80-100 hour weeks and sometimes nights spent back in the office. An investment banker receives bonuses at the end of the year. For example, a starting salary of $60,000 USD could get $40,000 in bonuses. The bonuses increase by approximately $15,000 per year.



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Further Reading

  • How To Become An Investment Bank Analyst www.investopedia.com

    Wall Street has changed in the aftermath of the Great Recession of 2008 and 2009 and that has changed the role of the investment banking analyst.

  • Why People Become Investment Bankers www.theibanker.com

    There are different reasons why individuals become investment bankers. Deep-seated motivations propel the uninitiated to persevere until the gates of entry to that prestigious world open before them.

  • Investment Banking Vs. Private Equity www.wallstreetprep.com

    Private equity tends to be a common exit path for investment banking analysts and consultants. As a result, we get a lot of questions on both the functional and the actual day-to-day differences between investment banking analyst/associate and private equity associate roles, so we figured we would lay it out here.

  • What Is Investment Banking? www.wallstreetoasis.com

    Investment banking is comprised of three main areas: investment banking division (IBD), sales and trading (S&T), and asset management.

  • Investment Banking: Your Future Salary And Career Path Revealed www.social-hire.com

    Investment Banking - it's a world that fascinates the global media and a career path that many aspire to. But it's certainly not for everyone...

  • Investment Banking www.ibankingfaq.com

    Investment banking lifestyle questions answered.

  • A Day In The Life Of An Investment Banker www.streetofwalls.com

    A Day in the life of an investment banking: learn what a banker does throughout the day...

  • Career Spotlight : Investment Banker www.schoolfinder.com

    Manish Srivastava, 24, is an analyst at a boutique (Wall Street vernacular for small-sized) merchant banking firm in New York. Before this job, he worked for a year and a half at a much larger global investment bank also based in New York.

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