What Does an Investment Banker Do?
We have all heard of the profession, but we may not know exactly what being an investment banker entails. We know that these people make tons of money, walk around in expensive suits, and drive fast cars. Due to the job title, we’ve probably deducted that it involves money and investments, which only scratches the surface of all of the duties involved in this career. Now, to answer the much anticipated question of: ‘What does an investment banker do?’
Job Responsibilities
An investment banker is responsible for the exchange of securities between large companies. This means that when one company wants to invest in another company, they go to investment bankers so a negotiation can be discussed and created. Stocks, bonds, or other assets are all types of investments that can be exchanged and negotiated.
These bankers also raise capital for their own firm, as well as large companies and governments. This is accomplished by trading, buying and selling stock or bonds. They are also called upon to advice certain strategic moves that involve a lot of money, such as buying or selling the business.
Working Conditions
They are employed by investment firms, which are banks that cannot be accessed by the public. The firm is essentially the middle-man between clients, and it buys and sells the different types of securities. If a security cannot be sold due to under-subscription, then the bank holds onto it. If there is an instance of over-subscription, then the bank has an opportunity to earn a large profit by re-selling the security at an inflated rate.
These bankers spend most of their days in an office setting, but they sometimes must travel to meet with their clients, especially when they are called upon for advisory. Their hours are quite hectic and are not typically a 9-5. Oftentimes, they will have to work at the convenience of their clients, which varies from day-to-day. Their work hours can total up to 100 hours a week, depending on how much work needs to be done.