College Requirements for Investment Bankers
College requirements for investment bankers varies according the career pursued in the industry. Since investment bankers are dealing with the underwriting of new securities, it is imperative that whatever their degree, they possess a strong understanding of financial markets, economics and statistics. A strong business sense and background also help for those seeking a career as an investment banker.
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Definition
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An investment banker is the middleman who underwrites new securities for corporations to the public. They often work at an investment bank that functions as a syndicate where they buy the securities outright to market and sell to major institutions or individual investors. The securities an investment banker underwrites range from municipal bonds to corporate IPOs (initial public offerings). Investment bankers generally specialize in specific areas of the market. Additionally, investment bankers play a major role in mergers and acquisitions.
Market Understanding
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An investment banker is required to have an in-depth understanding of the market, economic conditions and business structures. This is imperative because investment bankers create financial models based on pertinent information that affect millions, if not billions, of dollars in assets in any one deal. Investment bankers must possess the ability to conduct detailed financial analysis in conjunction with financial and economic details. The job is not simply one of analysis, but of prediction through financial, investment and marketing plans.
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MBA
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Most investment bankers are required to have at least a Master's of Business Administration through an accredited post-graduate university acquired after a bachelor's degree. Candidates may work at entry-level analyst positions while obtaining their degree. Without an MBA, candidates cannot reach a level higher than an associate at most investment banking firms.
Master's of Finance
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This is a more specialized post-graduate degree that many investment bankers will obtain either in lieu of an MBA or to add as a secondary credential. The MBA focuses on business principals and management skills, where the Master's of Finance focuses more deliberately on financial markets, economic and corporate models.
Investment Banker Careers
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Many investment bankers utilize their experience and degree to work as independent consultants. Many will obtain law degrees to specialize in corporate financial law---a lucrative extension of investment banking. Because of the detailed understanding of their specialized industry, many investment bankers are sought for their management training skills and corporate strategic planning.
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