You may have run into one of these pros at a bank, and you may have heard their job titles mentioned when it comes to wealth and wealth management. Investment bankers are big players in the financial industry, and they are highly regarded for the services they provide and the knowledge they have to share. Check out some of the most common questions people tend to have about these banking pros, and the answers you should know as a curious consumer.
What does an investment banker do anyway?
In simple layman's terms, an investment banker is a multi-purpose financial professional who works as a unique service provider in the banking industry. There are a lot of different services an investment banker may provide, including:
- Mergers and acquisitions services for businesses
- Proprietary trading between investors and clients
- Various financial services
- Wealth building advisory
- Issue bond financing
Those who work in the field as investment bankers are trusted by some of the biggest corporations, the wealthiest individuals, and even the government for the purpose of helping to build and maintain wealth, develop business, or secure proper financing.
Do investment makers make a high salary?
According to Glassdoor, the average salary for an investment banker in the United States is $114,631, which is a pretty attractive salary, but this is baseline pay most likely for someone who is just getting started. Those who have been investment bankers for longer do tend to earn higher salaries. Not to mention, these professionals can garner additional compensation through bonuses and percentage payouts as well. For example, if an investment banker helps an issuer sell shares of stock, they may get a healthy percentage of the selling price as a bonus from the issuer.
How long does it take to become an investment banker?
Most investment banking professionals start out their career as analysts working for a bank, which is a position that can be assumed directly out of college with a bachelor's degree in a study area that matches the credentials required by the bank. However, to actually become an investment banker, an individual will likely have to spend a few years or more working as an investment analyst and obtain a graduate degree before they can take on the role. Every bank or financial institution will have its own requirements, so the time it takes to step into the role can vary from employer to employer.