Investment Banking

Art of the deal
Background

Organizes financial transactions

Investment banking is the part of the financial industry that organizes financial transactions such as capital raises, debt issuances, mergers and acquisitions, and initial public offerings (IPOs). This is done in several different ways, often by brokering trades, underwriting of new debt or equity securities, or by acting as an advisor for mergers and acquisitions.

Experts in the market climate

Since the job of an investment banker boils down to facilitating transactions between two parties, investment bankers need to be experts at sensing the market climate for investors. Generally, they advise on how much a company or an asset is worth and how to best structure a deal if the client considers an investment, acquisition, merger, or sale. This advice normally concerns how much a client should pay for an asset and which financing solutions are most advantageous to complete a transaction, where both potential risk and return are taken into account.

High competition on Wall Street

Investment banking is widely known for being a very competitive industry with high wages and for its demanding and tough working environment. The world's most recognized symbol for this is the financial district in New York, Wall Street, where several of the top-ranked investment banks’ headquarters are located. These include Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Bank of America. In addition to being some of the financial industry's largest and most profitable companies, they are also perceived as some of the world's most prestigious workplaces.