Have you always dreamed of becoming an investment banker? Do you know what it takes to become one? And do you know where to start? Well, let me be the first to tell you that becoming an investment banker is no easy task. It takes years of study and hard work before landing your first role at a major firm. But if this is what you’re looking for, read on as we explore how to become an investment banker and get ready for some high-stakes player moves!
What to Know Before Becoming an Investment Banker?
You’ve probably heard the term “investment banker” tossed around in the news and on TV, but you may not know exactly what an investment banker does. If you’re interested in becoming one, here’s what you need to know:
- What is an investment banker?
The term “investment banker” refers to someone who helps companies raise money by advising them on mergers and acquisitions (M&A), initial public offerings (IPOs), and other transactions that involve raising capital. The role of an investment bank is extremely broad—they provide a wide range of services including capital raising, detailed financial modeling, mergers & acquisitions advisory, strategic advice, risk management consulting, and more.* How do I become an investment banking analyst? In order to become a Goldman Sachs analyst or any other top firm like Morgan Stanley or JP Morgan Chase requires a graduate degree from one of the top schools in finance such as Harvard Business School or Wharton School at UPenn University.* What does a typical day look like for an investment banker in banking? It depends on where you work but generally, it’s normal office hours with some evening hours required depending upon what projects are currently underway.* How much do analysts make when they land their first job after graduating from college? This varies widely based upon experience level prior industry knowledge etc., but overall analysts typically make between $100k-$150k annually with bonuses being paid out every year after 5 years which can range anywhere between $25k-$50k if all goes well during those periods
What Does an Investment Banker Do?
An investment banker helps a company raise money. This can be in the form of debt or equity financing. They also help companies that are going public (or being acquired or sold). A lot of times these bankers will advise you to take on debt or issue new equity when it makes sense, but they’ll do so only if those options make sense for your business.
The job of an investment banker is not always about raising cash, though—it’s about giving advice on all aspects of finance and helping companies grow their businesses by expanding into new markets and adopting new technologies.
Types of Investment Banking
Investment banking is a broad term that encompasses many different services. There are six major divisions:
- Mergers and acquisitions
- Corporate finance
- Capital markets (or securities)
- Financial advisory (underwriting and/or selling of bonds, promissory notes, etc.)
- Private equity (buying of companies requiring less than $500 million in the capital)
- Equity research (analyzing stocks)
4 Steps to Become an Investment Banker
Get a bachelor’s degree
In order to become an investment banker, you need at least a bachelor’s degree in finance or a related field. This is the minimum requirement for most entry-level positions and likely what will be required of you if you want to work at one of the big banks. However, depending on your career goals and how competitive your firm is, it may be possible to work as an analyst with just an undergraduate degree. But if you’re interested in becoming an MD or C-suite executive, having an MBA might also be necessary.
Obtain an MBA
Investment bankers usually have an MBA. In fact, about two-thirds of all managers and executives hold this degree. The reason for this is that a master’s in business administration offers additional training in topics like finance and accounting; it also provides some exposure to management skills that will be useful later on down the road. So even if you don’t plan on becoming a manager or executive, having an MBA will help prepare you for promotions down the line as well as provide valuable networking opportunities with other professionals who have similar credentials.
Take Series 7 and 63 securities exams
If you’re planning on becoming a financial advisor or broker, you should definitely take the Series 7 and 63 securities exams. These tests are designed to ensure that you have enough knowledge to provide sound investment advice and protect your client’s interests. If you want to become a financial advisor, then there’s no substitute for experience. Participating in an internship or apprenticeship program with a reputable firm will help you gain valuable experience that can be put on your resume when applying for jobs.
Earn experience in the industry
If you want to become a financial advisor, then there’s no substitute for experience. Participating in an internship or apprenticeship program with a reputable firm will help you gain valuable experience that can be put on your resume when applying for jobs.
How Long Does It Take To Become an Investment Banker?
Becoming an investment banker is a lengthy process that requires years of hard work and dedication. To become an investment banker, you will need to have at least a bachelor’s degree in business or finance. It is also important for your resume to show that you are able to communicate effectively with others, especially when trying to close deals for clients or investors.
Salary and Job Outlook
As an investment banker, you will work in finance. Your job is to help companies raise capital through the sale of securities such as bonds and stocks. You’ll be able to get a good salary, but there are also some downsides to working as an investment banker.
You can expect to earn between $150K and $200K per year as a junior-level employee and up to $300K or more if you’re highly skilled and work at the most prestigious institutions. If you’re just starting out, this might seem like a lot of money—but keep in mind that those numbers aren’t guaranteed until you’ve been working for several years! In fact, many young employees often start off making less than they would have earned doing something else (like teaching). However, since it’s possible for them to earn more over time as their careers progress by taking on increasingly challenging tasks that require greater responsibilities, as well as exploring alternative ways to earn money.
Responsibilities of an Investment Banker
As an investment banker, you will have to:
- Understand the financial markets, companies, and industries they are investing in.
- Understand the financial products they are selling.
- Know about the risks involved in their investments.
- Manage the risk of their investments.
How To Become an Investment Banker in Switzerland?
To become an investment banker in Switzerland, you need a bachelor’s degree in economics or finance and accounting.
For a job at a Swiss bank, you need to complete an internship with the bank and pass their recruitment process. To get a job in an investment bank, you will also have to pass the financial market entrance exam called ‘Finanzmarkt-Einstiegskurs (FEM)’. To become an investment banker, you need to have excellent skills in mathematics and a good knowledge of financial markets. You should also have excellent communication skills and be able to work under pressure.
The Bottom Line
As you can see, becoming an investment banker is not easy. It’s a long process that requires a lot of hard work and dedication. However, if you have what it takes to succeed in this field then there are many opportunities available for you. It all depends on how much commitment you have toward achieving your goal! To become an investment banker in Switzerland, you need a bachelor’s degree in economics or finance and accounting. You can also apply with an undergraduate degree in engineering, architecture, or any other related field.
