Educational Requirements for Investment Bankers

Some investment bankers study finance in college.

An investment banker is a sales agent who helps to facilitate the movement of funds via the United States securities exchanges. Investment bankers help client businesses that need money locate investors who are willing to provide the needed funds in exchange for bonds or stock in the company, notes the Bureau of Labor Statistics, or BLS.

Educational Requirements for Investment Bankers

A bachelor's degree is a minimum requirement for investment bankers; the BLS states that many will major in finance, accounting, business or economics as undergraduates. In order to advance to higher-level positions, a master's degree in business administration (MBA) is often needed. The MBA is a professional degree, and as such, graduates of MBA programs often receive signing bonuses and better compensation when hired. Once hired, most employers will provide new investment bankers with extensive on-the-job training.

Curriculum for Investment Bankers

At the undergraduate level, an aspiring investment banker majoring in finance will be exposed to topics including investment analysis, global financial management, economics and risk management. Some programs, such as that at the University of Connecticut, will offer finance majors the opportunity to study abroad, complete a senior thesis or engage in independent study in finance. An MBA program might offer a student the opportunity to specialize in investment banking. For example, students at the University of Wisconsin work on real-world projects that give them valuable experience in areas such as capital management and acquisition analysis.

Licensure for Investment Bankers

The Financial Industry Regulatory Authority, or FINRA, oversees certification for investment bankers. In order to qualify for the Series 7 exam -- the general securities exam required for investment bankers -- candidates must have four months of relevant work experience. The BLS notes that the Series 7 exam consists of 250 multiple choice questions. Applicants have six hours to finish the exam, and a passing score is 70 percent. Those that pass the test are qualified to buy and sell all securities products, including investment products, FINRA states on its website.

Job Outlook for Investment Bankers

Employment for securities and sales agents, including investment bankers, is expected to grow about 9 percent through the year 2018, according to the BLS. As applicants exceed the number of available positions, competition for employment will be keen. Prospective investment bankers can improve their chances of being hired by getting their undergraduate degrees from a prestigious institution and having excellent grades. Earning a graduate degree or certification can also improve employment prospects, notes the BLS. As of May 2008, the median annual wage for securities and sales agents was $68,680.

References

• Bureau of Labor Statistics: Securities, Commodities and Financial Services Sales Agents
• Financial Industry Regulatory Authority: FINRA Registration and Examination Requirements
• University of Connecticut: Finance Undergraduate Major
• University of Wisconsin: Nicholas Center for Corporate Finance and Investment Banking