Investment Banker

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DEFINITION of 'Investment Banker'

An individual who works in a financial institution that is in the business primarily of raising capital for companies, governments and other entities, or who works in a large bank's division that is involved with these activities. Investment bankers may also provide other services to their clients such as mergers and acquisition advice, or advice on specific transactions, such as a spin-off or reorganization. In smaller organizations that do not have a specific investment banking arm, corporate finance staff may fulfill the duties of investment bankers.

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BREAKING DOWN 'Investment Banker'

Investment bankers are generally very well-paid individuals, but these positions require specific skills - number-crunching ability, excellent verbal and written communication skills, and the capacity to work very long and grueling hours. Educational requirements usually include an MBA from a top-notch institution and/or the Chartered Financial Analyst designation.

The typical investment banking hierarchy is as follows - analyst, associate, vice president, senior V.P., managing director.

Since investment bankers can come across highly confidential information on companies in the course of their duties, their ability to respect the confidentiality of such information and not use it for their own benefit or for the benefit of their family and friends is of the utmost importance. All investment bankers must abide by their firm's stipulated code of conduct. This code usually contains very restrictive clauses on such matters as the treatment of confidential information, and the investment banker's contact with other employees of the firm, especially in areas such as research and trading.

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RELATED FAQS
  1. How can an investment banker switch to a career in corporate finance?

    It's pretty easy for an investment banker to switch to a career in corporate finance. The career skills are easily transferable, ... Read Full Answer >>
  2. What licenses and certifications do you need for a career in portfolio management?

    Traditionally, a career in portfolio management requires a certain level of education, professional licensing, on-the-job ... Read Full Answer >>
  3. How does insurance underwriting differ from investment underwriting?

    The main difference between investment underwriting and insurance underwriting is the type of financial service being offered. ... Read Full Answer >>
  4. What's the average salary of an investment banker?

    Investment bankers help companies raise money by offering advisory services for financial transactions, underwriting stocks ... Read Full Answer >>
  5. What are the reasons that cause investment bankers to fail in their careers?

    The main cause of investment bankers failing in their careers is underwriting assets without understanding their true values, ... Read Full Answer >>
  6. How does investment banking differ from commercial banking?

    Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>

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