Investment banks do much more than just raise capital by selling investments. Although selling securities to raise money is arguably the primary function of investment banks, they also serve several other roles. All the functions of investment banks typically fall into one of two primary categories: selling or buying. The role of an Investment banker varies depending on the level of experience. Junior bankers, like analysts or associates, spend much time preparing financial modeling, working on company research, presentations, and deal execution. On the other hand, senior bankers, such as the directors or the managing directors, spend more time building client relations, giving strategic advice, and winning new business opportunities for their bank. Skills Required for an Investment Banking Job In many ways, the use of debt, in a process called leverage, can be much like dynamite. When used prudently, leverage can be a creative force that gives companies the power to grow and create wealth faster than they would have otherwise. But at the same time, leverage can be abused and lead to great destruction of wealth, jobs, and enterprise. The graveyard of companies is littered with examples of businesses that lit the leverage bomb and didn’t know how to harness the power.

The 10 Best Investment Banking Books - Financial Expert™ The 10 Best Investment Banking Books - Financial Expert™

There may be options for companies not ready for an IPO to raise money. But at some point, the companies with the best prospects outgrow the venture capitalists, don’t want to pay the onerous terms of bank loans, or need more capital than can be raised casually. When these things happen, it’s time for the company to go public. Going public is a relatively long and costly process that requires preparing statements for regulators and investors, getting the company’s story out, and actually selling the shares.

2. Principles

Investment management: Here’s where Goldman serves the role of helping its clients put their money to work. Goldman offers financial advice to institutions through mutual funds, accounts it manages on behalf of clients, wealth management services, and financial counseling. Goldman serves some very wealthy individuals and families in this part of its business. Written in the straightforward and approachable tone the For Dummies series is known for the world over, authors Matthew Krantz and Robert Johnson have created an indispensable resource for students and professionals new to investment banking. Chocolate factories need milk, sugar, and cocoa to produce their delicious products. But the raw materials used by many investment banking firms is the information contained on the financial statements. These documents released by companies provide investment bankers with much of the information they need to start analyzing companies and looking for investment banking opportunities.

Investment Banking: Initial Public Offerings - dummies Investment Banking: Initial Public Offerings - dummies

Asset management fees: Some investment banks help their clients make decisions on how to invest their money. Investment banks generate asset management fees when they help clients decide which securities they should buy or sell. As with the book above, this text describes how firms operated during “The wild west Wallstreet era.” of the 1980s and early 90s. If the company proves to be successful, the options for raising money, or financing, grows. Prior to going public with an IPO, a growing company may consider a few options to raise money, including the following:

My list of the 5 best investment banking books above is as good as any place to start. They're mostly aimed at beginners, and therefore represent a good point to jump onboard with this reading challenge. The relationship between leverages buyout funds, hedge funds, and corporate and institutional clients

Investment Banking For Dummies, 2nd Edition | Wiley Investment Banking For Dummies, 2nd Edition | Wiley

Investment bankers often find themselves playing the role of a corporate matchmaker. A big part of the job description is finding new ways to raise money and help companies restructure themselves in a way that makes them more profitable for their owners.

Investment banking: This part of Goldman is the one most interesting to readers of this book. Here, Goldman guides companies embarking on M&A, provides assistance in bringing companies public, and conducts financial restructurings. Even though Principles is not about investment banking, it’s a powerful read that every investment banker should consume at some point because of Dalio’s ability to learn from his mistakes and turn failures into successes. According to him, successful individuals are guided by principles that guide their actions and help them achieve their goals. In this book, he goes over those principles that have been key to his success in business. But in many ways, the idea of an IPO is a bit of a misnomer, because they’re not entirely public. Investment bankers typically follow a process that can make it difficult for regular investors to get a piece of an IPO. As some reviewers say, “Finally, we have someone lifting the curtain, with refreshing candor and engaging prose; this book takes us inside the world of investment banking in the 1990s.” Beginners guides to investment banking - books which seek to answer the common question 'What on earth is an investment bank, and what do they actually do?". Because much of an investment banks' operations are quite obscure and have no relevance to an ordinary lay person's day-to-day life, many of us have little clue what goes on behind the polished veneer of an investment bank's office doors.