A career in investment banking may be for you if you have a keen interest in money and the stock market. Investment bankers, as opposed to other types of bankers, focus their work on firms and governments, providing financial consulting services and assistance with deal execution. You may decide whether you want to pursue this career path further by learning about what investment bankers do.
The definition of investment banking and the duties of investment bankers are covered in this article.
Investment banking definition
Investment banking is a branch of banking operations that provides financial advisory services and helps businesses, governments, and other entities obtain cash by carrying out transactions like mergers and acquisitions. Investment banks serve as a bridge between organizations in need of financing and investors searching for investment possibilities. Investment banks also provide advice to businesses with the issuance and placement of shares, as well as underwriting equity securities and new loans for all kinds of firms.
What is the work of an investment banker?
Investment bankers provide government and corporate clients with advice. They give their customers a range of advisory services, support them while they obtain funds in the capital markets, and offer advice on mergers and acquisitions. Their principal duties include the following:
1.To value debt and equity for capital-raising activities, mergers, and acquisitions, many types of financial models must be developed.
2.Making suggestions for mergers and acquisitions, product offers, valuations, and private equity deals.
3.Using a variety of appraisal techniques.
4.Composing and revising investment memos, pitch books, management presentations, and other documents used to assist customers in obtaining funding.
5.Doing investigation, analysis, and documentation before deals.