Investment banking versus your future career.
What do you really know about investment banking? Perhaps, you associate it with those huge mergers, initial public offerings or big corporate transactions which appear on front pages of newspapers. However, to decide if an investment bank is your future destination, certainly you need to know much more. So, let’s try to get some insight into this field of banking.
When you think “bank” you usually associate it with commercial banks where you deposit or from where you withdraw money. Yet, there are also investment banks that aid companies in acquiring funds. They specialize in finding true value of a business, as they earn their money on offering initial or secondary issues of securities, both stocks and bonds, as well as on assistance with mergers and acquisitions. Investment banking firms do large amounts of consulting. They also track the capital market in order to give advice on when to issue securities and how best to manage the business' public assets. In this respect their services are similar to private brokerages, as investment banks provide both buy- and sell-side advice to their institutional clients. They also engage in venture and private capital which constitute the most lucrative part of this business. Investment banks are intermediaries between the issuers and the investing public. They underwrite securities and create market for them by buying and selling stocks or bonds out of their own account. In return, they make profit from the spread between the bid and the ask price or fees lied on issuers. Recently, some investment banking firms have also started to offer retail brokerage and asset management. Individuals and small companies may purchase various financial products directly through retail brokers. Asset management services cover running a portfolio for wealthy clients.
Wall Street and Midtown in New York City, London, Frankfurt, Tokyo and Hong Kong are the centres of this industry...
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