What is Investment Banking & Finance?
An investment bank is a financial services company that acts as an intermediary in large and complex financial transactions. An investment bank also has a role as a broker or financial adviser for large institutional clients such as pension funds.
Investment banks help corporations issue shares of stock in an IPO or an additional stock offering. They also arrange debt financing for corporations by finding large-scale investors for corporate bonds. The investment bank is responsible for examining a company’s financial statements for accuracy and publishing a prospectus that describes the offering in detail to investors before the securities are available for purchase.
Investment bank clients include corporations, pension funds, other financial institutions, governments, and hedge funds.
What 3rd level courses are available?
Universities and colleges in Ireland are offering Investment Banking & Finance courses in the following subject areas:
- MSc in Investment, Treasury & Banking – A study of financial markets, the competitive structure of the markets, and the regulatory environment.
- Diploma in Investment and Capital Markets – Gain in-depth knowledge of capital markets, investing, and trading.
- Diploma in Investment and Finance – Gain a thorough understanding of investment and finance.
- Diploma in Capital Markets, Investment & Trading – A study of market movements and the effect and implications they have for investors, traders, and market participants.
- Issues in International Finance and Investment – An introduction to managing international resource allocation and investment both externally via the capital markets and lending institutions and internally within an organization.
- Diploma in Investment & Capital Markets – This course aims to develop an understanding of the world of capital markets, investing, and trading.
Studying Investment Banking & Finance in college
Many Investment Banking & Finance courses take place over 1 year to 4 years depending on the course and modules selected. There are also part-time courses and night courses available so you can be sure to fit in your studies no matter what your schedule is like.
Courses will cover theory work through lectures, assignments, tutorials, and taught modules. Assessments will take place continuously with written examinations and practical assignments combined to achieve a qualification. You could also consider work experience or internships. Completing an internship with an investment bank is a valuable way to improve your chances of securing a job. Most investment banks offer some of their interns’ full-time positions.
Experience gained in back-office functions within an investment bank demonstrates a long-term commitment to working within the industry. Part-time work or holiday work at your chosen organization can also be very valuable, especially at the selection stage when employers are looking for ways to differentiate between the candidates.
Work Experience will not only allow you to obtain a deeper knowledge and understanding of the industry, but it will also give you a chance to do some essential networking with other industry professionals and gain valuable contacts for the future.
Career options
After completing a course in Investment Banking & Finance you will be able to get started in a career that uses specific knowledge of Finance and Banking.
The main role of an investment banker is to advise companies, institutions, and governments on how to achieve their financial goals and implement long and short-term financial plans. You’ll work in dedicated teams, focusing on specific transactions or market sectors. Investment bankers also work alongside other related professionals such as lawyers and accountants. A typical corporate finance deal involves two stages:
Working hours will depend on whether you are employed by a company with set business hours or if you are contracted to various facilities or companies. The hours are regularly long and often unsocial. You’ll be expected to work at the weekend as deals approach crucial stages – fifteen-hour days are not unusual, and you could work up to 100 hours a week in busy periods.
Many investment banks have global offices and can offer you the chance to work overseas. Once qualified, you may spend a significant amount of time working abroad.
Related jobs include:
- Investment Banker
- Investment Banking Analyst
- Investment Banking Associate
- Financial Advisor
- Economic Analyst
- Director
- Managing Director
- Portfolio Manager
- Stockbroker
- Risk Assessor
Further study
After completing a course in Investment Banking & Finance you may choose to pursue further study in a specialist field to increase your knowledge base and skillset. Postgraduate study can also be used as a means to change career focus or to gain professional qualifications required to practice in certain career areas such as Accounting, Capital Markets, Corporate Finance, Economics, Financial Modelling, or Law.
FAQ
What are the different types of Investment Banking?
Investment banks typically deal in three main areas:
· Corporate finance – involves providing specialist knowledge and advice on mergers and acquisitions, assisting clients with expansion to increase profitability, safeguard and diversify the market position.
· Debt capital markets – this involves working with lenders such as financial institutions, agencies, and public and private companies to design and restructure debt obligations.
· Equity capital markets – involves advising clients on how much capital to raise, from where and when, through research and analysis of products and markets.
What is the difference between investment banks and retail and commercial banks?
Retail banks accept deposits of money and lend it out to borrowers; commercial banks do the same but their depositors are businesses rather than individuals. Investment banks don’t take deposits and instead one of their main activities is raising money by selling ‘securities’ such as shares or bonds to investors.
Where can I study Investment Banking & Finance?
Explore your options here
Did You Know?
· In most countries, banks are legally obligated to keep legal tender (coin and paper money printed by the government) in reserve so that patrons can exchange “bank money” (checks and credit card payments) for actual currency whenever they request it.
· Founded in 1397, the Medici Bank rapidly became the largest bank in Europe, after its founder took the risk of backing Baldassare Cossa, a one-time pirate, in his bid to become Pope of the Roman Catholic Church. Cossa succeeded; in return, he rewarded the Medici Bank with responsibility for handling all of the Curia’s finances.
· In addition to centers for religious worship, ancient Babylonian temples functioned as schools, law courts, mercantile centers, and banks.
· The collapse of New York’s Bank of the United States in 1931 was the largest single bank failure in American history, with a loss of over $200 million in deposits.
· The Industrial and Commercial Bank of China (ICBC) has been the world’s largest bank for almost a decade. The bank has around $4 trillion in assets and employs almost half a million people.
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