When it comes to financing careers, investment banking is one of the high-profile options. Remuneration is lucrative and the job is high-profile, given the responsibility of working with government and private organizations to arrange capital for them.
What is investment banking?
The investment banking industry forms a specific division of overall banking that creates capital for private and public companies as well as governments. The three tasks handled include:
• Underwriting: new equity and debt securities for corporations of all types. Here, investment bankers serve as mediators between investors and issuers, seeking to connect both profitably by leveraging their expertise and extensive network.
• Sale: of securities. Investment bankers provide guidance on setting the price of securities and other financial instruments, as well as complying with legalities.
• Broker trades, mergers and acquisitions (M&A), and reorganizations: facilitating deals by identifying the right prospect to acquire or merge with. For this, investment bankers conduct thorough research on the industry and possible targets.
• Guidance: on stock issuance and placement
Is there a good course to take up for investment banking?
Prospective entrants are charmed by the high-profile jobs, but are often at a loss as to what they need to do to start off their careers. For someone already working in a finance role, getting into the investment banking industry will require – among other things – taking up the right investment banking course.
Are there different courses for people at different stages?
Technically, what you need is the right set of skills to become an investment banking professional. However, since practically these skills or their on-the-job implementation cannot be learned from just books or self-practice, it is advised to take up a suitable course in investment banking.
There is a wide choice of course types for people planning to enter the investment banking industry. For those who are still studying for their undergraduate degrees or about to commence their majors, the advice is to choose subjects that take them toward their ultimate career goals.
The best way to start is to take up a bachelor’s degree in relevant subjects. These include mathematics, statistics, commerce, economics, and others. When it comes to more senior roles or trying for openings at the most high-profile of the investment banks, a candidate would be well advised to complete a master’s in business administration with a specialization, considered a de facto requirement for entry. There is also the option of specialized courses, such as the Financial Risk Manager (FRM) or the Chartered Financial Analyst (CFA).
Another good approach is to take up one of the best investment banking certifications. There are a number of reputed institutions that offer a variety of certifications, certificate courses, and other short-term courses in investment banking. The advantage of choosing a certification in investment banking is that it proves to the prospective employer that the candidate has the most current set of skills and knowhow to take on the required responsibilities. It shows that the person is ready and willing to take on higher roles or greater responsibilities, particularly if the person has been working in the field for a while. Additionally, the recertification requirements of most certifications show that the candidate is someone willing to invest in continual learning.
Which topics are covered in investment banking courses?
Courses in investment banking are designed to provide in-depth knowledge of the field and its core processes. These aim to provide the right skills and hands-on knowledge of using these skills to become a successful investment banking professional.
The courses cover a variety of aspects such as financial engineering, equity research, portfolio management, and corporate finance. Important aspects such as financial modeling and equity research are more on the technical side of things, while the right course also touches on the softer aspects of handling demanding clients and the pressures of the job.