Investment Banking
Have you ever wondered what investment banking is? Maybe you've seen films about investment bankers and are interested in learning how they establish their careers? Investment banking is different from regular banking that individuals carry out on a day to day basis. Instead of loaning money to individuals like commercial banks do, investment banks help companies, agencies and governments raise money. They do this by raising funds, issuing and selling shares and offering a range of financial services specifically for businesses. They also provide advice for companies engaging in mergers and acquisitions.
Investment banks therefore play a different role from commercial banks, which lend money to businesses and accept deposits into commercial accounts. In recent years however, many large investment banks have also begun to offer commercial services to their clients and some have even taken on the role of investment brokers, offering their customers the opportunity to purchase a wide range of stocks and bonds in public companies. The most successful financial firms in the world offer a mixture of investment banking and commercial services, along with financial and trade advice.
There are two main types of services an investment bank offers. The first one is known as “selling” which involves in trading securities in other companies for cash. The second service is known as “buying” and includes the setting up of investment funds and collecting pools of money from companies. Some of the world's most well known investment banks which offer a huge array of selling and buying services include Merrill Lynch, Goldman Sachs and Morgan Stanley.
The world of investment banking is highly competitive. It is also an exciting and ever-changing industry where no day is ever quite the same. For this reason, careers in investment banking are highly sought after. While it may be many people's dream to work for a top investment bank on Wall Street, establishing a career is hard work and requires a lot of patience, perseverance and ambition. You will need to have sound business knowledge, understand fully how the stock market works and have a strong interest in financial markets.
For more infomation on corporate finance choose from the list below. |
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Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
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