Overview of Investment Banking

So recently I started to research investment Banking and I get to learn about a lot of things. I learned that Investment banking fuels economic growth facilitates capital raising, and drives corporate transactions. Investment banking plays a big role in connecting companies, governments, and investors to achieve their financial objectives. I also learned that investment banking revolves around Four functions: Capital Raising, Mergers and Acquisitions (M&A), Securities trading, and Financial Advisory. So basically in
Capital-raising:
Investment banks serve as the bridge between companies seeking funds and investors willing to provide capital. Through initial public offerings (IPOs), secondary offerings, or private placements, but I wasn't able to learn the role of investment bankers in depth, in short they make this whole process very smooth for companies as well as investors. By enabling companies to access capital, investment banking fuels entrepreneurship, job creation, and economic expansion.
Mergers and Acquisitions:
Investment banks act as trusted advisors in M&A transactions, providing guidance and financial advice. Their role includes identifying potential targets or buyers, valuing companies, structuring deals, and making negotiations. M&A activities enable companies to consolidate their operations, expand their market presence, and drive harmony.
Securities Trading:
Investment banks house dedicated trading desks that engage in buying and selling various securities on behalf of clients and for their own accounts. They facilitate trades in equities, commodities, foreign exchange, etc. with the help of their market knowledge, research capabilities, and risk management skills, investment banks provide liquidity to financial markets and play a vital role in price discovery and efficient capital allocation.
Financial Advisory:
Investment banks provide financial advisory services, offering strategic and financial consulting to clients. They assist in matters such as corporate restructuring, debt issuance, capital allocation, and corporate governance, providing expert guidance specific to their clients.
Investment banking also provides other services like Research, Asset Management, etc. But right now I haven't learned much about those.
Investment banking operates in a way to ensure transparency, fair practices, and the stability of financial markets. Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, Securities & Exchange Board of India (SEBI), and similar institutions globally, impose some standards on investment banks to maintain the integrity and smooth workflow of the financial system.
So I hope this article will help those who want to get an overview of Investment Banking

Thank you

 

Et et at distinctio praesentium. Ut iusto facilis cupiditate ducimus aut necessitatibus. Laudantium et quod voluptate ducimus ut.

Est id quae et iure consequatur. Ex ad nostrum et sint omnis ad sit voluptatum. Aut iure rem aut ut ea rerum sit. Omnis ipsam vero dolorem in. Voluptatibus et qui commodi cupiditate vel quisquam qui. Reiciendis ullam cum sint modi earum ad nihil. Adipisci placeat possimus quo saepe ut consectetur.

Exercitationem laudantium molestiae et id aliquid quo tempore in. Minima est suscipit est voluptate laudantium. Qui quibusdam ea sit impedit eum et distinctio nobis. Magni eveniet possimus soluta harum ut autem. Quo eum doloremque voluptatem velit provident suscipit.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.9%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 04 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
GameTheory's picture
GameTheory
98.9
7
kanon's picture
kanon
98.9
8
dosk17's picture
dosk17
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”