Have you ever heard about the investment banking sector?
There are many who plan to become an investment banker in order to make huge profits.
Investment banking deals with raising debt and equity capital for big-shot companies and seems to be an attractive career option for all the recent university graduates who have got few months of experience.
Although there's enough competition in this particular market, yet it still remains to be one of the highly-lucrative options for the young adults to earn high level of income and to gain executive-level experience.
So, what do you think? Are you going on the right path with regards to your career?
If you want to take a sneak-peak into the stressful world of investment banking, here are some facts that you may want to consider.
What exactly is investment banking?
The investment banking sector offers a wide array of financial services which includes raising capital for the companies while issuing equity or debt securities, underwriting and facilitating mergers.
When it comes to raising capital for a company, the investment bank plays the role of an intermediary between the issuer and the investor.
The capital that is usually raised comes from the private investors or from the public markets.
Merger and acquisition services are also offered by the investment banks both on the buying and the selling side of the deal.
Do you have all the qualities that takes to choose a career in investment banking?
Like any other market, the investment banking sector also has some skill requirement and some qualification criteria that the fresher needs to live up to.
The ability to offer valuation statements and logically make calculations is the most important requirement for choosing a career in the investment banking industry.
You should have enough work stamina, personal and interaction skills and also have mental and emotional horsepower.
This particular field opens its doors to the recent graduates who have done a mastery of finance or accounting.
Such calculations are vital as the investors will pay what they perceive to be a fair price for a debt investment or equity.
The person should also have critical thinking skills so that he can take decisions immediately without making too many mistakes.
What kind of work entails the investment banking industry?
There are different internal and external factors that drive the anticipations of the long-term and short-term future cash flow of an organization.
To fulfill all such needs, the team of analysts who work for an investment bank will have to study the entire industry, assess alternative business conditions, conduct competitive analysis and also analyze organizational structure, business models and go-forward plans. Communication is the key skill that you require while being an investment banker as you need to communicate with a lot of people in this sector.
While you have to communicate with the executive level, you also have to communicate with the clients and therefore you should know how to deal with different class of people.
How to stand out in the crowd of investment bankers?
Most investment banks seek high academic achievement and immaculate communication skills.
One should be involved in some campus leadership positions and in any other non-profit organizations.
The applicant for the job should also be able to convey emotional horsepower and think according to a solid sense of directions in terms of achievable goals of the company.
The students or the applicants should have a passion of the entire economic sector so that they can stand out in the crowd.
Therefore, when you're about to choose a career so that you can earn a huge amount of dollars, you can choose to become an investment banker. Take into account the above mentioned points in order to strike a good deal.