Revenues from sales of a corporation are greatly needed to keep it vibrant. However, it is imperative that corporations bring in funding from other sources. Investment bankers help companies raise the funds needed for expansion, adding another product line, and other pertinent causes. They raise money on behalf of a corporation by offering common and preferred stock, corporate bonds and other financial assets. Not only do they raise money selling these securities, but their expertise allows them to structure mergers, analyze complex financial transactions, and provide underwriting services.
Pursuing the investment banking career path requires candidates to possess analytical and math skills. These skills can be learned and mastered in college. While in school, banking career candidates must take courses in finance and accounting where they will learn financial statement analysis. Although this career can be entered into with a Bachelors degree, it is very hard to receive a promotion without a Masters degree. Candidates should work hard to achieve high grades to stand out from fierce competition.
The investment banking career path has three levels candidates can pursue. The entry-level career path is titled Investment Banking Analyst. This level requires a Bachelors degree and 0-2 years of work experience. Professionals at this level must have knowledge concerning equity transactions. They should also possess strong computer skills. They are expected to make about $50,000 to a little over $100,000 in salary and bonuses. Part of their job is to assist senior level investment bankers.
The mid-level career path is titled Associate Investment Banker. This professional will acquire vice president status at this level. They should have about 3-8 years of professional banking experience. At this level they should be comfortable with acquiring new clients for their investment firm. Their presentation skills to clients should be highly professional. They are expected to make about $185,000 to over $350,000 in salary and bonuses.
The senior-level career path is titled management consultant. This professional will acquire Director, senior vice president status at this level. These professionals should have over 9 years of experience. They should be experts in both the entry and mid-level career paths. They should have strong negotiation skills and experience closing complex financial transactions. The salaries and bonuses at this level ranges from about $300,000 to over $1,000,000. They are responsible for managing investment bankers at the senior and mid-level career paths.
People who go into investment banking must have the will to succeed. It is a very competitive field that takes commitment to climb to the ultimate position of management consultant. The hours are long and require time on many weekends. Additionally, the offices where investment bankers work can be very stressful and demanding. Therefore, people should think carefully about this field before entering into it. However, as stated earlier it has many financial rewards. With hard work, dedication and confidence a person can be well on their way to success in investment banking.
