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Wednesday, January 13, 2016

By Larry Mitchell


Financial institutions that help governments, individuals, and/or corporations to raise funds by underwriting or acting as agents are called investment banks. They are different from retail and commercial banks on many levels including the fact that they do not accept deposits. An investment banker abbreviated as IB is a professional who works with the banks mentioned above.

Various degree programs can prepare one to work as an IB. Some of the most common courses include finance, business, and accounting. Many job positions usually require a bachelor degree for one to qualify. However, for higher positions, one may need to have a master degree in finance or business administration among other courses. Employers prefer programs in business administration because they provide students with actual field experience.

Graduate and undergraduate programs in this field emphasize proper professional behavior and the importance of understanding business ethics. Other job titles that one can receive upon completing training include financial manager and floor broker. Typical areas covered by the courses include principles of taxation, investing, corporate finance, and accounting. Positions at the entry-level entail individuals training on the job. People who have advanced degrees may start working at the associate level and be exposed to more chances for promotion.

The future is very bright for these professionals. A report by the US Bureau of Labor Statistics estimated that jobs will grow by 11 percent from the year 2012 up to 2022. The growth will be concentrated in three main sectors, that is financial, commodities, and securities. Demand for the workers is expected to grow as baby boomers retire from work.

The duties of the bankers are numerous and very diverse. However, the duties are basically built around connecting investors to businesses that need finances. They help in structuring IPOs for private firms so that they can go public. They work around the clock to beat the scrutiny placed on IPOs until they launch. They also specialize in acquisitions and mergers. They help to structure deals that lead to mergers or acquisitions. They also help to develop agreements and analyze losses and gains made by firms.

Most of the hours these bankers work are spent consulting with customers. Other responsibilities they handle include conducting research, maintenance of data in spreadsheets, and creation of reports. They may be required to do data analysis and offer recommendations. Once in a while they may spend time out of the office to meet probable clients and build industry relationships.

One can see clearly from how much the workers have to deal with that they are usually busy individuals. Their day begins early in the morning and ends late in the evening. They have little time for socializing or resting. Weekends, and holidays are often interrupted by work.

The annual salary of these bankers was 102, 510 USD in 2013. Besides the basic salary, they also pocket commission of products sold. Those that hold higher positions are likely to earn more because they are more experienced.




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