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Investment Banking: The Role of Investment Banking In The Society

Updated on December 14, 2013

Investment banking is a particular banking system that allows customers to invest their money directly or indirectly and also helps companies, government and individual raise fund by means of bond selling, security sales, mergers and acquisitions and issuing of IPO. Investment banking gives both the learned and the novice in the investment industry the opportunity to maximize better dividend of their business or property by way of mergers and acquisitions.

Investment banking Online


Investment banking helps to boost the economy of the commercial sections of the society in other words they create more opportunity for both the employed and unemployed ones to raise capital and make profit.

They also help boost the financial security of a country from possible financial drop down. Every economy that wants to have a growing financial status must require the services of an investment banking.


The investment bank is a financial institution that helps corporate organizations, company and individual persons to raise enough capital to invest in their projects. Investment banking is all about money and security trading, turning the paper works into real money. They also helps to advice you on the proper kind of investment to invest your money into at the right time, in other words they give professional advice on when to issue a sell or buy request for stocks, bonds and securities, or better still invest the money for you if given the veto power.

Investment banking duties and functions

These are some of the services of an investment bank in the investment industry;

Invest your money: Unlike the commercial banks that helps you to invest your money directly where you deposit and withdraw money; the investment banks indirectly helps you invest your money in a chosen market, though this may not be done directly but you would surely get a maximum returns on your securities. After Gramm-Leach-Bliley Act in 1999, the investment bank and commercial bank in the US can be incorporated thereby giving them more rooms for many services. Though the major duties of the investment bank is to offer viable and reliable advice on how to invest your money properly, buying and selling of acquisitions and trading on stocks and bonds.

Sales of company stocks: Another duty of investment banking is the sales of company shares and bond in order to raise funds and capital for government, corporations, companies and individuals. This is to aid the corporation to raise enough capital funds for the executions of projects and acquire more property for business.

Buy securities: They also help corporate bodies to buy shares which they believe have a good value and have a ready and standby buyer whom would make a higher bargain. They act more or less like the stockbroker when it comes to buying and selling of shares. These securities when traded could help the company in raising more capital.

Managing assets and investment portfolios: Investment banking also helps to manage your assets. As a corporate body or even a business man, you need the services of an investment bank to help you in the management of your assets, properties and finance. In a growing business where more of the finance comes from either the public or banks, there is a higher need of an investment banks to do the proper management of both the assets and finance.

Offer good financial advice: One of the functions of a good investment banker is to offer a good and profitable financial advice to clients. This professional advice requires proper research on when to issue shares to the public in order to raise funds, when not to issue public shares and also when to acquire a merger. All these and more are the professional duties of an investment banker. Though there is no 100% assurance that with an investment bank you would get the best deal, but they would actually help to aid you in getting a better and fairer deal especially on merger acquisitions.

List of investment banks

J.P Morgan & co

Morgan Stanley


Barclays Capital

Credit Suisse


Goldman Sachs & Co

Deutsche Banks & Co


Bank of America/Merrill Lynch





Standard Bank

Societe Generale

Noble Bank


Piper Jaffray

Lincoln Partners

Royal bank Of Canada

Toronto Dominion

Robertson Stephens


Bank of Montreal

Bank of Nova Scotia

Close Brothers Group

Fidelity International

Greenhill & Co

M&G Investments

Employment opportunity in investment banks

There are so many job opportunities in the investment banks industry due to its wide range of services and product. You can apply to any investment bank around you if you have the required qualifications. This includes the following:

Education: The investment industry is a very competitive field of and anyone who wish to get a job as an investment banker or other job positions in the investment must at least have university degree, this will give you added advantage over other persons pursuing the same career opportunity, you can also increase your chances of employment in the job market by going for other higher career program.

Good with mathematics: Another added would be having additional knowledge of statistics and mathematics to secure a job in the investment banking industry.

Know your spreadsheet: This would be very important especially if you are not a degree holder, but it would be advisable to get an MBA certificate after your internship in the industry.

Be ready to move to NY: If you’re considering a career in the investment bank and you are residing in America, be ready to move to NY as most of the major investment banks are in NY.

Experience: Having an experience at least with any other financial institutions would be a great advantage. Most of the big names in the investment banking sectors prefer to offer job post to people whom they think are already trained in the financial sector.

Skills: Most investment banking jobs would take a substantial amount of your time and effort, so a proficient skills knowing what you’re doing and liking what you do would take you a long way in the sector.

Communications: Having strong communication ability is another skill that the investment banks do look out for when hiring someone for an employment.

Pursuing Career as an investment banker could be very lucrative if the economy is on the good side, but you could be unemployed if there is a slum in the economy. But this is actually a very good career to pursue because it pays high.

How To Apply For Jobs In An Investment Banks

You can apply as any of the following in an investment bank; marketer, receptionist, IT professional, Banker or even a sales representative the list is endless depending on the services of the particular investment bank. But it could be very difficult to get a job in the investment bank. But you can send your application through networking or on-campus recruitment. In the case where you are able to secure an interview be sure to read and grab all you can in quantitative and increase your communication ability to a higher level.

When you want to apply for job in the investment bank here are few steps to take

  • Search for available positions of jobs online at the online investment banking sectors.
  • Apply for the job through their career sector online or through mail.
  • Write a very good and attractive CV
  • Prepare yourself for possible interviews if called upon.

With these few steps you can get a very good and lucrative job in the investment banking sector.


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    • profile image

      tuyambeka 12 months ago

      the information was clear and understandable thank you so much I know the difference now

    • profile image

      Sameexa Rajput 2 years ago

      Hello klaboy can you please send me a YOY growth of IB as a industry ?? in my email id I require it for my project

    • profile image

      shs 3 years ago

      this one is so helpful!


    • profile image

      klaboyy 4 years ago

      Thanks for dropping by, would love to share more knowledge.

    • profile image

      Emmanuel 7 years ago

      Clear but full of significant knowledge, you have opened my brains. Thank you