{"id":944,"date":"2022-08-01T18:06:44","date_gmt":"2022-08-01T18:06:44","guid":{"rendered":"https:\/\/theforage.wpengine.com\/?p=944"},"modified":"2024-07-23T13:21:28","modified_gmt":"2024-07-23T17:21:28","slug":"investment-banker","status":"publish","type":"post","link":"https:\/\/theforage.wpengine.com\/careers\/investment-banker","title":{"rendered":"Investment Banker: Definition and How to Become One"},"content":{"rendered":"\n

An investment banker works for a banking institution to raise capital and advise economic decisions. While that may sound confusing, an investment banker’s job is relatively straightforward. <\/p>\n\n\n\n

According to Robert R. Johnson, professor of finance<\/a> at Heider College of Business, Creighton University, “Investment bankers raise money by selling securities and transferring that money to people who need it to grow businesses or bring other costly projects to reality.”<\/p>\n\n\n\n

What Is an Investment Banker?<\/h2>\n\n\n\n

Investment bankers collect data, make financial models, and advise their clients and employers based on their findings. Bankers early in their careers are referred to as analysts \u2014 investment bankers are a special type of financial analyst<\/a> that specialize in buying and selling securities and facilitating large corporate transactions, like mergers and acquisitions (M&A)<\/a>. <\/p>\n\n\n\n

Investment bankers work for many types of investment banking companies<\/a>, ranging from bulge bracket global banks (like Goldman Sachs<\/a>) to boutique investment firms (like Capstone Partners). Regardless of where they work, investment bankers typically start as analysts, eventually becoming associates after a few years of experience and maybe an advanced degree. They then become vice presidents (VPs) and managing directors (MDs) \u2014 the ultimate decision-makers in the investment banking<\/a> industry.<\/p>\n\n\n\n\t

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\n\t\t\t\t\t\"J.P.Morgan\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

JPMorgan Investment Banking<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

Practice real-world tasks investment bankers do at JPMorgan with this free job simulation. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t
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\n\t\t\t\t\t\tAvg. Time:<\/span>\n\t\t\t\t\t\t5 hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\tSkills you’ll build:<\/span>\n\t\t\t\t\t\tM&A screening, company analysis, financial modeling, DCF, presentations, communication\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

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What Do Investment Bankers Do?<\/h3>\n\n\n\n

Investment banks have two main functions, typically referred to as the buy side and the sell side.<\/p>\n\n\n\n

 “Investment bankers are best known for the part of their business that sells securities, or the sell-side,” says Johnson. “This function of the investment bank is responsible for finding investors to buy the securities being sold, which raises the money needed by businesses and governments to grow and prosper.” <\/p>\n\n\n\n

On the buy side, investment bankers assist in advising purchasing and transactions. Johnson continues, “Serving in its role on the buy side, the investment bank can offer suggestions to large institutional investors like mutual funds, pension plans, or endowments on which securities may be appropriate for it to buy in order to meet its return targets.” <\/p>\n\n\n\n

Some common responsibilities of investment bankers include: <\/p>\n\n\n\n