Finance: Investment Banking

Because of how broad finance is, there are many different fields and careers that can branch off from finance. One such topic is investment banking. Investment banking is actually a division of banking. The main goal of investment banking is to generate extra money for corporations and even in some cases the government. Pertaining to investment bankers, one priority of investment bankers is to help with any mergers that may be taking place between two companies. One essential characteristic for an investment banker to have is that he/she should understand the investment environment at anytime. By knowing this, they know exactly how much money should be invested, the interest rate, and what companies need the most investments. Ultimately, by doing this, investment bankers are able to assist their clients. Moreover, investment bankers also have to help resolve issues regarding the distribution and placement of stock. They can do this by extensive collaboration between the companies and the investors. Most investment banks are divisions or subsidiaries of larger companies. Some large investment banking companies include Goldman Sachs, Morgan Stanley, and JP Morgan Chase. Another objective of Investment Bankers is to calculate how much a business is worth based on financial transactions. Furthermore, when investment banks are appointed by the government or corporations, it is the job of the investment bankers to discuss any possible risks that may be associated with the task at hand, and identify any monetary information with the clients. To better understand the role of invest banks and investment bankers, they serve as the bridge between a company (or government) and the investors. By bridging these two together, invest banks are able to ensure that there is a coherent link for the investors to understand where there money is going, and for the companies to account for exactly how much money they will be receiving.

By Arjun Sheth