If you don’t know what investment banking is, in basic terms. It’s when a bank negotiates deals on behalf of large companies to get the money for projects or purchases.
For example, if company X needs 100 million dollars to start up production on a new chemical. They would go to a bank that has expertise in international finance (such as Goldman Sachs). Who are able to get the 100 million dollars from multiple sources at cheaper rates. Then what it could be bought at by doing market research and finding the best deal.
The people who do this job are called “Investment Bankers” or “IB’s,” although you could also say they work for a bank or financial firm.
An IB is required to have an undergraduate degree before taking a year-long training program. Made up of multiple exams and interviews. Which will let them become fully qualified Investment Bankers.
Therefore normally, to go into investment banking. The most common route is to study finance at university. Then apply for an entry-level position as an analyst (which we’ll discuss later).
This means that many students will be looking at whether they want to go down the finance. Route vs. going down another degree such as Law.
Many students think that studying Law would be more beneficial. But it is important to consider all factors before deciding.
Business or Law?
For students wishing to go into investment banking, the most common degree studied. Would be a business-related degree such as economics. Focusing on finance, accounting, and mathematics.
The benefits of this route are that you get a good understanding of how businesses work. Which can prove very beneficial in your career. When conducting evaluations and negotiations with companies.
Business degrees also make it easier to network within the industry due to their knowledge of how businesses operate.
In terms of salary prospects, after gaining relevant experience in Investment Banking. It is possible for an average business graduate to earn 150-200 thousand dollars per year.
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