How Any NewBie Who Doesn’t Know Jack About Banks Can Profit From Investment Banking
Investment Banking
I know the BIG question on your mind right now is how do I profit from investment banking?
You see, Investment banking is one of the easiest ways to create a sustainable source of income by affiliating with a finance company that sells shares unbehalf of individuals and private organizations. They help in endorsing and sales of security.
What is Investment Banking And How Does It Benefit Me?
What does all this mean?
Investment banking is a service rendered by banks whereby the banks act for investors; they assit investors with assets find other investors with money to buy this asset.
They help companies, governments, and institutions raise funds, execute financial transactions, and provide financial advice to companies and organizations.
In a Third World Country like Nigeria, a fresh graduate in this sector earns between N300, 000 and N600, 000 per month.
In countries like USA (United States of America), the salaries of Investment Bankers in the US range from $140,000 to $210,000.
In UK, the start-up salary for an investment banker is about £30,000 to £40,000, after which it can be increased.
How These Investment Banks Make Their Profit That Being Hidden From Mainstream Media.
You see, these Investment banks buy bonds at a cheap rate and resell.
to make a massive stack of profits selling at higher prices on the marketplace.
Isn’t that simply amazing?
Other Secrets Ways Used by Investment Banks to Make Lots of Money Include;
Advisory Fees:
Most companies and sectors depend on investment banks for financial guidance and advice since they have the best knowledge about investment. There is a consultant charge for this service depending on the hours and workload needed for the success of any investment.
Trading Income:
This process of profiting entails selling assets un-behalf of clients, after which they earn a percentage for any successful return. These are often called asset management fees.
Other investments banks carry out personal trading desks for themselves to generate an undivided profit.
Securitization:
Securitized assets are bought by investment banks and sell them to first-grade investors who are ready to invest. They sell pools of a securitized assets at a high rate.
Underwriting:
In the securities market, underwriting involves shouldering the risk securities by buying the securities of a company or individual and issuing them out to the public for sale.
Types of Investment Banking
Health Care Investment banking
In the health care investment sector, companies like hospitals, the biotech industry and pharmaceutical firms are led by investment banks on matters related to share sales, acquisition and granting equity capital.
Health care investment bank is safe because the demand for health care service is consistent. Stocks and bonds may change in other sectors but not in the health care investment sector. In New York, health care investment services are about $82,177.
Real Estate Investment Banking (REIB):
Professionals in (REIB) guide real estate investors in homebuilding development. They also merge sellers and buyers for ales of an asset.
Financial institutions group:
This is an aggregate of business analysts and other financial experts who mentor and give financial guides to clients from other financial institutions like insurance companies, technology companies, specialty finance, and asset management firms. Financial institutions profit by selling securitized assets at higher rates after borrowing at lower rates.
Technology, Media and Telecom Investment Banking (TMT): This form of investment banking services media and telecom companies to raise debt and equity and complete mergers, acquisitions, and asset sales.
How to Get into Investment Banking
- Understand the Job
Firstly, you need to understand the modus operandi involved in this banking, which could help you make other decisions concerning this profession.
2. Decide on an Investment Banking Niche You Want To Dive Into.
This banking is broad. At a beginner level, working as an investment analyst is recommended.
Since this profession is broad, professionalism is needed for any specialty.
To work as an operational investment banker, one must have good mathematical skills since this has to do with transaction clearance. Mergers and financial advisers are part of this profession, and you have to choose one.
3. Get an Investment Banking Degree.
Universities like The London Institute of Banking & Finance offer the industry-recognized BSc Finance, Investment . It’s a three to four-year course depending on the institution.
In Nigeria, a graduate of Banking and Finance could also work as an investment banker. Getting a degree is important because a bachelor’s degree is normally expected for most investment banking graduate jobs or graduates with a good knowledge of accounting and mathematics.
4. Build connections and Apply for Job opportunities
As a fresh graduate in investment banking, you need to work with a team or firm to gain more experience in your field. Job applications can be made by researching for opportunities to know where your services would be needed.
List of Investment Banks Firms in Nigeria
· Renaissance Capital Bank.
· Vetiva Capital Management.
· Stanbic IBTC Capital Limited.
· Meristem Capital.
· First Bank of Nigeria Quest Asset Management.
· Afrinvest.
· Coronation Merchant Bank.
· Chapel Hill Denham.
Some Investment Banking Firms in the UK
· Goldman Sachs International Market Share
· Barclays Bank plc Market Share
· Morgan Stanley & Co International plc Market Share
· J P Morgan Securities plc Market Share
· Merrill Lynch International Market Share
Some Investment Banking Firms in the US
· JPMorgan Chase.
· Goldman Sachs.
· BofA Securities.
· Morgan Stanley.
· Citigroup.
· UBS.
· Credit Suisse.
· Deutsche Bank.
