Careers in investment banking are not simple to get, as they demand an extensive study at university and completion of entry examinations. Even if you are capable of jumping through these hoops, numerous people are attempting to break into investment banking, so you will have significant competition in acquiring your first paid position. If you do finish up with paid work, it is more probable that you will have to work at the lowest level for several years before you can progress to something higher.
Climbing the Ladder in Investment Banking
A common investment banker career is spent partially on both sides of the fence; that is, the banker usually spends part of their career on the selling side and the rest on the buying side. The selling side is the part that puts stock issues in the market, typically on the part of large corporations, but in some cases on behalf of the government. This is the most significant function of an investment bank in Western society, and the success or otherwise of this function will primarily determine profit levels and sustainability. The profit to be obtained on a successful stock launch is remarkable, and there is typically an option to benefit even more later on.
The other part of an investment banking career, and one that you will pretty much experience at some point, is the buying side. This does not imply that the bank really buys anything per se, just that it functions as a broker in positioning investment orders into the market for institutional investors and for private individuals. There are restrictions as to who can utilize this service, created by the minimum order amounts. These are essential to stop valuable time being squandered on transactions where there is not adequate commission for the broker.
Mapping Your Investment Banking Career
Most careers in investment banking begin when the graduate leaves college and moves into an entry-level job. This will commonly be as a market analyst, which is the lowest level of investment banker. The work is lengthy and tough, and the analyst is, in essence, the grunt worker providing those higher up with what they require. This will typically carry on for several years, though it could be reduced by a promotion to associate if the company considers that you are exceptional and have the potential to work at a greater level. The analyst will usually be transferred to the buying arm after a number of years.
A small number of graduates, at the beginning of their investment banker career, will be offered the chance to go directly into a job as an associate. This generally only takes place with graduates who are completing a high-level MBA course, and it occurs due to the fact that the company is willing to the a risk to get the signature of a potentially outstanding worker before anybody else does the same. If you are fortunate enough to be in this situation, you can sidestep the lowest level entirely. The drawback to this method of entry is that associates are expected to be loyal to the placement and so never get to encounter the buying side of the company.
Growing Your Role in Investment Banking
One thing is certain, and that is that all careers in investment banking begin with success in college. Discovering the right course for your personality and abilities is the key to making this career work for you. It is feasible to recover a career that gets off to a poor start, because as long as you can get a job anywhere, you will nevertheless be starting at the same stage as everybody else. The correct college degree, though, is like rocket fuel to careers in investment banking.
