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Tag: Investment banking course

A Comprehensive Guide to Understand Bull & Bear Markets

Posted on by Imarticus Learning

When you start your investment journey, you definitely come across terms like “bull market” and “bear market”. In investment, the terms “bull” and “bear” are often used to describe the market conditions if they are increasing or decreasing in value. As an investor, it is important to learn investment banking to understand the market value as it may have major impacts on your investments.

What is a bull market?

A bull market is when the market is on the rise or expected to rise over a period of time. It also denotes high prices in the company’s shares, which makes the investors gain more confidence in the market. When the market is “bullish”, it indicates that there is a rise in the GDP and there should be positive results for weeks and months to come. The typical indicators of a bullish market are increased prices in stocks, bonds, real estate, and more.

What is a bear market?

A bear market is the opposite of a bull market. A bear market is usually indicated by almost a 20% fall in the stock market prices throughout a minimum of two months. It creates a sense of negativity amongst the investors, and they hesitate to make any kind of investment. A bearish market leads investors to sell out their stocks so that they can minimize their losses.

A bear market can have an adverse impact on the GDP of the country and could cause a lot of unemployment. An average bear market can last for up to 1.4 years or even longer.

Bull vs Bear markets and their impact on investment strategies

Bull and bear market and your investment strategies are inter-related. Your strategy highly depends on the current market conditions. However, the market does not always have to be in either condition; it can remain stagnant for a long time and can increase or decrease very gradually.

It is generally advised to invest in both markets while keeping your portfolio in mind. During a bullish market, you should consider investing at a very early stage so that when the stock prices are at an all-time high, you can sell them and earn great profits. While in a bearish market, the prices usually drop and stocks tend to lose their value, therefore, you should check your investment profile and make adjustments in your strategy accordingly.

It is also advisable to buy large stocks of blue-chip companies during this time because that will ultimately get your profile back on track in the long run and help you recover your profits. Several capital market courses will guide you through the details of both markets and how you can create an investment strategy.

Conclusion

The bull and bear market can influence your investment strategies in a great way that is why it is wise to continuously keep a track of where the market is going from day 1 of your investment. You must have a risk tolerance when you start investing and should always stick to your strategies no matter how the market at the moment is.

Always remember that whatever the condition is, you can reap the benefits of the stock market in the long term. To understand further, you can look into the investment banking courses with placements and have an idea of how the market works.

What is Role of Investment Banker in Underwriting Process?

Posted on by Imarticus Learning

When it comes to choosing lucrative career options, the investment banking field has got its own charm. The big fat paycheck certainly adds a lot of weight when it comes to increasing the competition in the field. The big cheques bring big responsibilities to the table, the role of an investment banker is very diverse and requires a combination of hard and soft skills to prevail in the face of cut-throat competition.

One of the key roles of investment bankers and investment banks is highlighted in the context of the underwriting process. Before jumping over to the crucial role played by the investment banks, let’s understand the nitty-gritty of the underwriting process.

Understanding the Underwriting Process

In the contemporary financial landscape, underwriting has become one of the most crucial functions. From insurance to the stock market and banking underwriting is omnipresent in this industry. In the most generic sense underwriting process can be described as the practice of undertaking the risk associated with a venture in lieu of a specified premium amount to be borne by the party initiating the venture.
The process of underwriting in the case of the stock market involves determining the price of a given security and assessing the risk involved with it. The underwriting process in the context of the stock market differs from the insurance and banking sector. Underwriting in the insurance industry involves determining the risk and setting up the premium amount for a particular client based on their exposure. In the banking scenario underwriting assists in the crucial function of appraising the creditworthiness of a potential customer through their past financial records.

Investment Banks in the Underwriting Process

From guiding on alternative investment opportunities to assisting in mergers & acquisitions and facilitating the underwriting process, the investment plays a holistic role in the functioning of the global economy. In addition to this investment banks also aids in asset management for large investment funds and individuals with high net worth.
Investment banks have a crucial role to play when it comes to underwriting in the context of the stock market. The role of investment banks in the underwriting process begins as a pre-underwriting advisor and continues even after the distribution of securities in a similar capacity. The investment banks do a thorough financial analysis of the company before underwriting any security to determine the real value of securities and publish relevant information for the perusal of investors who will likely purchase the stock.
You must’ve heard of Initial Public Offerings (IPOs) which is where the investment banks have a frequent intervention. The investment banks play the middlemen by acting as the mediator between the corporations who have to go public with the IPOs and the investors who are eyeing for the stocks of the company. So what investment bank does here is it purchases the shares of the corporation going public and then, in turn, sells those shares through a stock exchange.
This process is complicated and needs assessment of the fair price of the shares for the company going public. This involves a fair amount of risk in case the IPO is not subscribed fully when selling through the exchange, for this the investment bank charges a premium. In the case of big corporation’s IPOs, there are multiple investment banks involved so that the risk for any single investment bank is not paramount.

Furthermore, there are three types of commitment in the underwriting process that is carried out by investment banks in the case of IPOs.

1. Firm Commitment
In this case, the investment bank as an underwriter agrees to buy the entire issue of shares by the firm going public at an agreed-upon value per share. Any financial loss in case the shares are not fully subscribed is borne by the investment bank.

2. Best Efforts
In this scenario, the investment banks agree to sell as many shares as possible at the agreed-upon value per share. It doesn’t have any obligation if it fails to fully sell the shares to the public, so it is not legally accountable for the unsold shares of the company going public.

3. All or none
The name is very self-explanatory and doesn’t require much guidance to understand. Under this scenario, the underwriter will only get the deal if it can help sell all the shares issued by the firm at the agreed-upon value per share. If they fail to sell the entire stock they will be discarded from the agreement.

What’s The Current Deal With Commodities Trading?

Posted on by Imarticus Learning

Commodity refers to a raw material (can also be agricultural produce) that could be bought or sold. A fun fact: in ancient times, commodities were used as a currency in a system known as the Barter System. There are still certain places on Earth (like tribal areas) where the barter system is still prevalent.

Almost similar to this concept, commodities trading refers to the exchange of commodities in specific markets like Multi Commodity Exchange – MCX, The Universal Commodity Exchange – UCX, etc.

However, the global coronavirus pandemic shook everything. Trade Life Cycle is not the same anymore. We would be discussing this sudden shift caused by this pandemic and the exact situation of commodity trading today.

Trade Life CycleA brief History of Commodity trading:

Trading commodities could be easily linked back to even the prehistoric era. In fact, the rise and fall of entire empires have a direct relationship with their ability to sell and manufacture commodities. It would also be prudent to note that the empires that rose to dominance could create a complex and robust structure for commodity exchange.

In recent times this tradition of buying and selling commodities is retained. The only things that have changed are the commodities and the medium of transferring goods. Some of the most prominent ones responsible for commodity exchange are NYMEX, ICE, LME, etc.

Current State of Commodity trading:

It was 11th March 2020 when the World Health Organization declared the Coronavirus as a Global Pandemic. To curb the spread of the virus, lockdowns were initiated globally. Effectively, the world came to a standstill. Although a little normalcy has returned, however, things are far from what they used to be.

Because of the global shutdown, the demand and supply of commodities have been shaken from the inside, according to the reports of Commodity Market Outlook. The strength of the pandemic would determine how badly things would turn out to be in the future.

However, in today’s paradigm, things aren’t looking too optimistic. It has been estimated that this pandemic could leave a permanent impact on the supply chains, thus adversely affecting the producers and consumers worldwide.

The exact extent of the situation could be easily estimated by looking at the oil prices. The demand for oil is expected to go down by an unprecedented 9.3 Million barrels a day. The energy sector fairs no differently. The natural gas and coal prices are also supposed to fall by over 40% by the time this year draws to an end.

Metals (both precious and enterprise-grade) are also expected to fall. Needless to say, the entire world has been pushed to the brink of another recession. The only sector that remained untouched is the food sector. However, with the excessive regulations on export, things aren’t looking too bright.

What does it have to do with commodity trading, you ask? See, traders are in the game for profits and since the prices of almost all commodities are reaching an all-time low, so are their profits. Long-term challenges are being expected in commodity trading sectors.

Transport costs may start rising which would eventually accumulate as higher trading costs. Stockpiling goods can also result in restricting trade flows. Reduction of demand, supply chain disruption, and economic downturn can affect multiple economies and thus affect the commodity markets.

Companies worldwide struggled because of Covid-19. To overcome this, now every company have started giving the Investment Banking Training, that helps employees, traders, freshers, graduates to cover the financial crises and be ready for any such future crises.

An Investment banking career helps not only to manage the finances wisely but also helps to prepare the funds from a company level, business level to a retirement plan.

Investment Banking CourseThe Investment Banking course is for each and everyone, there is no such criteria to apply for this course, except the graduation in any field. But this helps truly in making big Financial decisions.

Challenges Looming in the Investment Banking Industry

Posted on by Imarticus Learning

How do the Investment Banks function?

Before assessing the challenges that the investment banking sector is facing in the contemporary, it’s important to gain some insights into the functioning of the investment banks. From underwriting of new stocks to handling mergers and acquisition deals and advising clients on profitable investment avenues, there is a lot that investment banks bring to the world of finance. Let’s find out how investment banks handle this multi-dimensional role in the financial services industry.

Investment Banks as Underwriters

As underwriters, the investment banks serve as intermediaries between the corporation seeking to raise funds through IPO and the investors who are ready to invest money in a profitable venture. Investment banks buy the securities from the corporations as per the agreement and then resell it through stock exchanges.

Investment banks in Merger & Acquisition deals

Mergers and Acquisition deals are one of the most important aspects of the investment banking field. Investment banks have a huge role to play in the Merger & Acquisitions deals which are carried out to increase profitability and reduce competition between corporates.

Investment Banks in an advisory capacity

Investment banks guide big corporations and high net worth individuals to park their money in profitable avenues. Investment banks assess the needs and risk appetite of their clients and provide customized investment solutions to them.

Challenges in the Investment Banking domain

It all seems so fancy from the outside but all is not well in the investment banking sector. Ever since the global financial crisis in 2008, regulatory bodies have imposed new standards that are to be met by the players in the financial services industry. Let’s dig deeper into some of the most prominent challenges in the investment banking landscape.

Regulatory Challenges

One of the most pressing challenges that the investment banks face in the contemporary is regarding the regulatory requirements imposed by regulatory bodies. The Basel III norms require financial institutions to maintain core liquidity, reduce short term funding and hold more liquid assets. Basel III has caused fundamental shifts in product profit margins.

The Disruptive Fintech Industry

Everybody is talking about the Fintech industry, the finance and technology amalgamation has completely disrupted the traditional finance industry. Working on the principles of democratization and financial inclusion, the Fintech industry proves to be the next big thing in the Finance segment leaving investment banks behind. Fintech companies also enjoy much more flexibility when it comes to aligning itself with regulatory requirements.

Talent Acquisition

Talent acquisition has been one of the most significant challenges in the investment banking industry. The workforce today has equally lucrative alternatives to try out their career in, working in the investment banking industry can be challenging given the long hours and complexities in the job.

Cybersecurity

Cybersecurity has been a nightmare for the finance industry, according to the UK’s financial regulatory body cases of security breach has grown multiple folds in the last 2 years. More than five prominent British banks, including the likes of Royal Bank of Scotland and Barclays, were forced offline temporarily after a series of cyber-attacks.

Augmenting Client Experience

We are no longer living in a world where products and services are offered, today it’s all about selling experience, and customers value the experience of availing the product or service more than anything else. Hyper personalization has totally changed the game in the B2C segment, the B2B segment is looking up to a similar makeover. This has increased the client’s expectations from investment banks who are still operating as per traditional standards.

Conclusion

With the advent of Fintech companies and the stringiness of regulatory bodies post-global financial crisis, the investment baking world is facing some real challenges and quickly need to adapt to new requirements and changing expectations of its clients.

What are the Qualifications Required to Become Investment Bankers?

Posted on by Imarticus Learning

A hot-shot career, a high-profile job with an equally attractive pay-check, investment banking happens to be among the most sought-after careers for college and MBA students in finance and business, alike. The job of an investment banker, as glamourous as it may sound, entails great responsibilities and challenges combined with abundant learning, along with the promises of a fancy Swiss vacation it brings with itself! However, before you set foot in that door, do you have what it takes to be hired by topnotch investment banking firms?

Investment bankers come from a wide range of backgrounds but your strength must lie in mathematics; a bachelor’s degree in accounting, finance as well as physics or computer science also helps. However, simply holding a degree alone cannot do much wonders to your career in investment banking. Here are some of the qualifications that will help you take a step in the direction of pursuing investment banking as a career:

● A degree in finance preferably from any of the top-tier B schools- Big names like IIM- A/B/C or ISB have a good impact on the recruiter. In fact, global companies visit these campuses to recruit young professionals directly for internships or even at entry-level trainee investment banker jobs.
● CFA qualification- A Chartered Financial Analyst is a highly esteemed investment banking course and has a global accreditation in around 150 countries around the world. It helps in portfolio management as well as equity research.
● Knowledge in financial modelling- It is advisable to pair your post graduate or PG-diploma programme with financial modelling. Not only does it give you an additional edge as compared to other students or young professionals but also, amps up your overall knowledge in the field of business from an investment banker’s perspective. Additionally, knowing how to chart financial models on spreadsheets in definitely going to have a positive impact on the recruiter.
● An investment banking internship- A hands-on experience will definitely stand out on your resume while you are looking for opportunities to start your investment banking career. By taking on multiple, or at least one internship while in college, you not only gain exposure to the multi-faceted industry but also be able to decide which aspect of investment banking actually draws you the most.
● Developed knowledge on the segmented financial industry- As you move up the ladder, from an educational background to the onset of your career, a clear understanding of how the financial industry works will benefit you in multiple ways. Read up on emerging trends in the finance sector, research on highs and lows of the industry and keep-up-to-date by reading more trade journals that are likely to keep you informed about past and present market patterns.
● Have a solid resume or cover letter- Use the right phrases and sentences to present your accomplishments and goals in the right manner to the recruiter. Your resume and/or cover letter should be aesthetically pleasing as well, highlight the most important areas of your qualifications or experience.
● Relevant case experience- This is probably something that no investment banking course will teach you. Case experience means having worked on an assignment that would be relevant or in along the same lines of your banking job. The recruiter may actually test your practical knowledge to see if you are a fit candidate for the job or not.
● Participation in extracurricular activities- A campus club membership, some experience in a leadership position in college or anything that adds value to your personal portfolio often adds value to the job you are applying for, as well as adds to your recruiter’s interest. This may also include taking up online courses, running student organisations or even reading for pleasure.
Last but not the least, getting recruited by investment bankers also depends on your networking skills ad that final round of interview. Be confident, use the correct jargon to questions asked, and do not shy away from admitting what you do not know yet. Let’s face it, a little ignorance but a lot of honesty and integrity might actually land you that dream job in your dream investment banking firm. With the aforementioned qualifications and these tips, you are sure to find an opportunity thats been waiting for you, right around the corner.

Also Read: Career & Scope in Investment Banking

How Is Investment Banking Distinguished From Commercial Banking?

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Investment banks help corporations, companies, and governments raise capital, assist in mergers and acquisitions, and provide ancillary services such as derivatives trading, foreign exchange, equity securities, and making markets. They act as intermediaries between buyers and sellers of stock as well. Investment banking training is extensive with the aim of having an in-depth knowledge of financial markets and concepts.

Commercial banks, or retail banks, on the other hand, are set up to deal with commercial transactions like legally taking money from individuals and corporations in the form of accounts and then lending the capital to others with interest.

Any investment banking course providing investment banking certifications will explain that an investment banker deals with companies as a financial intermediary and provides investment and financial advisory services. A commercial or retail bank provides banking services to the general public. Since a commercial bank works with the public, their customer base is much larger than that of investment banks who only works with companies.

One of the key differences between these two types of banking industries lies in the relationship and services offered by both. A commercial bank will only provide standardized services while an investment bank will personalize their services and give customer specific advice. Commercial banks are highly regulated by the government and Reserve Bank, making them more risk averse while investment banks have a higher tolerance for risk since they have lesser regulations. This makes the rewards for investment banking higher. Conversely, the losses in investment banking can be much more substantial.

The role of an investment bank is to identify companies that will benefit from their services and then make presentation to them. For example, with Amazon looking to increase its footprint across sectors, an investment bank can identify other, smaller companies who already have existing inroads in that sector, and pitch to Amazon to try to acquire the smaller company. This was seen with Amazon buying Whole Foods.

Another way investment banks work is by identifying companies that require extra capital investment in order to increase their growth. While these companies might be considering traditional commercial banks for a loan, they might be deterred by the high-interest rates. An investment banker can pitch different ideas, mainly the creation of equity or releasing bonds, to the company. The investment bank is also responsible for drawing up the legal documents for such processes. They make money by charging a commission or a fee. Sometimes, they might even buy some bonds or stock in the company.

A commercial bank provides services that are associated with traditional banking systems for individuals. They will help you procure a loan against interest with collateral or help you open and create various accounts such as RD, FD, current deposits, savings accounts, and more. These services are already pre-defined and do not change from person to person.

There are many banks that proved both forms of banking. For example, it is not uncommon to see banks help a company set up and sell an IPO and then use the commercial side to provide a line of credit to the company. This will ensure that the company enjoys quick financial growth and in turn, increase its stock prices.

Understanding the Fundamentals of Investment Banking – Financial Modelling

Posted on by Imarticus Learning

Financial modeling is a quantitative analysis of the financial assets and performance of a firm. It helps to hypothesize likely financial outcomes with the help of mathematical representations and improve predictions by estimating the market functions.

Based on the assumptions, calculations are made, and using different types of financial models, the results are then analyzed. The structure of the model is usually dynamic, which means that there is inherent flexibility and sensitivity to the numbers used. 

The main components of financial modeling are the income statement, balance sheet, cash flow statement, and debt schedule.

Income statement

The income statement reflects the summary of the company’s expenditure, revenues, profits, and losses during the accounting period. It is also known as profit and loss statement, statement of operation, and statement of financial performance. 

Balance sheet

The balance sheet shows the details of the company’s liabilities and assets at a point in time and is used in business evaluation. It is also referred to as the “statement of financial position” as it demonstrates the company’s financial position.

Cash flow statement

The cash flow statement reflects the changes in cash and its equivalents due to changes in the income statement and balance sheet. It is useful for generating cash forecasts by breaking down the operating, investing, and financing activities to determine the company’s performance.

Debt schedule 

A debt schedule is a cash flow projection and tracks the debt, interest, payment schedules of the company. It is a crucial part of financial analysis and includes details like the opening balance, interest expense, repayments, and closing balance.

The role of financial models in financial analysis

Financial models help summarize the results of various financial practices and help provide directions towards desirable outcomes. They give a detailed view of the financial portfolio, investments, and other financial assets of a company. The forecasted data proves useful in formulating policies, assessing investment options, reviewing existing financial functions, and raising capital.

Think of financial models as simulations created to understand income statements, balance sheets, depreciation schedules, project costs, economic trends, and their impact on the company’s financial operations. 

Depending on the type of problems that need to be solved, different types of financial models need to be used. These models usually are part of one of the following categories – pricing models, reporting models, integrated financial statement models, and project finance models. 

The different types of models include discounted cash flow model, comparative company analysis model, sum-of-the-parts-model, leveraged buy-out (LBO) model, merger and acquisition model, and option pricing model.

A good financial model should give you information about the company’s financial position, an overview of the different components and their relationship, a detailed summary of the costs, and predictions about future performance.

The role of Excel in financial modeling 

Excel is an indispensable tool for financial modeling. It is a spreadsheet program used to record, analyze and represent data in a tabular format.

An in-depth understanding of Excel is essential for an investment banking or financial analyst and an investment banking certification course that covers the basics of Excel can provide a good foundation for learning financial modeling. 

Excel can prove to be an extremely useful tool when dealing with large amounts of financial data, recording entries, and calculating financial outcomes. It features existing formulas that help you to calculate payments, yields, rates of interest, and depreciation.

It offers templates that help you to create budgets, cash-flow statements, and create custom financial reports. The data can be stored and organized in a flexible manner to be reused at any point in time. Excel integrates with various software applications so that you can import data from various sources and represent it in various forms.

Gaining proficiency in Excel can be extremely beneficial for your investment banking career. Once you are familiar with using Excel you can start building basic financial statements using historical data.   

financial modelling coursesThere are financial modeling certifications available in the market but choosing the right certification program can yield long-term benefits for you.

Not all financial modeling certifications teach you how to use Excel to its full potential. While choosing the right program, keep in mind that the course covers all Excel functions and tools.

 Building a career as a financial analyst or an investment banking professional can be extremely rewarding. You can explore online courses and resources that can help you along the way. Once you’re familiar with the basics, you can opt for professional investment banking certifications that will help you to polish your skills and get practical experience in the financial industry.

Beginners Guide to Investment Banking

Posted on by Imarticus Learning

Investment banking is an expansive and challenging field which several individuals can pursue. Here is everything you need to know to kickstart your career in investment banking.

Investment banking is a field that one can pursue with passion and determination. It is that division of a bank or a financial institution that helps companies secure, implement and manage their finances well in order to succeed and grow. It is a highly dynamic and volatile field which is looking for individuals who have not only completed an investment banking course but are also charismatic and driven.

There are various functions and areas that one gets to operate in, upon completing an investment banking training from evaluating assets to auditing to securing funds and client relationship management. Investment bankers are talented and do multi-functional roles in their companies. While specialization exists, At the heart of investment banking is the ability of the bank to raise funds for the clients and this is done predominantly by issuing debt or selling equity of a company.

Investment bankers need a good quality radar in order to determine the best possible way to raise money quickly. These are crucial decisions which will determine the future of the company and hence investment bankers are highly paid. This also means the job entails long hours and strategic thinking at every step of the way.

Here are the top things that beginners get to do in the field of investment banking.

  • Raising capital: One of the top job functions that every investment banker does is the ability to raise money for a business. Every company needs an understanding of how to raise finances to run the business and to take off. Raising capital will then create enough to buy equipment, employ people and create products and sell. Therefore, an important area of expertise for those pursuing a career in investment banking is knowing how to raise funds for a company.
  • Assisting in Mergers & Acquisitions: Another important aspect of an investment banker’s role in banking is to help clients evaluate other companies before acquiring them. This means taking stock of the assets and liabilities of the other company, auditing and evaluating and creating a forecast which can benefit the client.
  • Issuing Debt: A primary function of an investment banker is to issue bonds to the right investors. This will help raise the required capital for their clients. Companies also hire investment bankers when they must go public i.e. issue an Initial Public Offering (IPO) to raise funds.  The success of this plays a crucial role in how the company flourishes in the future. Since aggressive sales skills are required for this, it is a highly competitive field which is rich in rewards.

Conclusion
Investment banking begins to be lucrative and continues to climb the growth trajectory provided one is hardworking, dedicated and sharp. It is a great career for those interested in finance.

Also Read: How Good is Investment Banking as a Career

What does an Asset Manager do? An A to Z guide of Asset Management

Posted on by Imarticus Learning

Tracking assets is an important aspect of any company. Stakeholders need to know which assets should be employed to receive the most optimal returns. Asset management as the name suggests is the management of assets on the behalf of others.

Many asset management institutions offer their investment banking services, including a wide range of alternative and conventional products that an average investor might not find himself/herself.

What is asset management?

Asset Management Course is the development, selling, operating, and maintaining assets of clients to grow their portfolios and mitigate risks in a cost-effective manner.

Asset Management CourseAsset management is offered by financial and investment banking institutions to corporations, government entities, and individuals with high net worth.

What does an asset manager do?

An asset manager-

  • Develops and maintains portfolios of his/her clients in accordance with investment preferences.
  • Prepares and presents financial statements, asset management reports, and forecasts periodically.
  • Collaborates with the clients on asset risk management, progress, status, and requirements.
  • Develops complex finance models and does their analysis.
  • Researches and communicates with clients about the market trends and potential changes that may impact the assets and investment opportunities.
  • Maximizes the profit of the client by undertaking a periodic review of assets.
  • Ensures legal compliance by analyzing financials.
  • Ensures that the asset management system is up to date and accurate.

What is Trade Life Cycle?

Trade Life Cycle is a concept that is majorly used by asset managers and investment bankers. The Trade Life Cycle is the lifecycle of a trade that is divided into 10 constituent parts which can be applied to any trade. This makes the asset manager’s job easier to manage and record the trade and maximize its benefits. 

Trade Life CycleWhat qualifications do you need for asset management?

To be an asset manager, no strict educational qualifications are needed. Graduation from any degree is necessary, and investment banking courses certainly help an asset manager in growing his/her career.

Is asset management a good career?

Asset managers need to be ambitious and high-performing. For finance students and students with certifications in investment banking courses, asset management can offer a very lucrative and booming career path.

The pay is incredibly high, and there is a substantial amount of clout that comes with the job, as well as they, are mainly employed in banks and asset management firms that specialize in the area. Promotion chances are high for experienced asset managers, and they can easily land up in senior manager or leadership positions if they have what it takes.

What are the skills required for this role?

Asset managers are required to have excellent communication and interpersonal skills. Being assertive and confident is also a required skill that portrays that candidates have good decision-making skills.

Time management, taking initiative, excellent analytical skills, the ability to solve problems quickly and effectively, and strong attention to detail are some qualities potential employers look for in candidates. The ability to work under pressure is a prerequisite that is essential to this job.

Conclusion

Companies streamline their operations by keeping track of assets by using asset management.  Asset management is a very essential part of a company or an organization and should be looked into if you’re looking for a rewarding career related to investment banking.

Related Article:

https://imarticus.org/knowledge-series-what-is-asset-management-and-how-does-mutual-fund-structure-work-in-asset-management/

Who Earns More, A Stockbroker or an Investment Banker

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The terms- investment bankers and stockbrokers are often used interchangeably used, however, they are starkly different from one another in terms of functions, responsibilities, and salaries. These job roles are both similar in terms of quite a few aspects like teamwork, attention to detail, proficiency in accounts or mathematics, and efficient customer service.

However, in terms of services provided, a stockbroker is different from that of an investment banker. While a banker provides services that range from loans, opening accounts, credit lines, enabling seamless payments for banking clients and more, a stockbroker is in charge of investments, executing taxes on behalf of their clients, recommends portfolios and more.

Investment Banker- roles and responsibilities

An investment banker is a person responsible for various duties that include, helping clients in raising in the capital market by selling equity or issuing debt. They also often advise clients on various opportunities for investments, helping them with M&As (mergers and acquisitions) and more.
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The two most important jobs they perform are, selling equity in a company and issuing debt. The whole idea is to raise money for clients. Selling equity in a company includes the involvement of an investment banker courses since he is the person, clients approach when a company holds an IPO (initial public offering), which means the company opens up for selling stocks to the public.

best investment banking course

Since a lot of companies are actually judged on the basis of their IPO performances, companies seek the assistance of investment bankers, who in turn help them line investors and more.

The second most important duty includes issuing debt, which means the process of selling bonds to interested investors. Companies looking to raise capital often have difficulty in finding the right investor who has a lot of money to invest. They often resort to an investment banker, to help them with the structure of the bonds, and also look up and prepare a potential list of investors to approach.

A couple of other heavy-duty functions investment bankers have to perform are, helping clients with investment ideas and opportunities, helping broker M&As and more.

Stockbroker- roles, and responsibilities

A stockbroker is the liaise between various stock traders, investors, and brokerage firms to sell stocks or conveying orders that need to be bought. He also is responsible for managing and servicing his client portfolios, developing new business, or even trading for a client. In certain situations, a stockbroker may also act as a financial advisor since he is in charge of buying and selling stocks on behalf of his clients.

It helps if a stockbroker has a friendly and outgoing personality as his job involves a lot of interaction with clients or other public. A marketing or sales persona usually helps.

Education and earnings of a stockbroker
To pursue a career in this venue requires a college degree, preferably in the field of business or finance. There are also certain other requirements to qualify as a professional stockbroker which includes passing relevant examinations.
The earnings of a stockbroker are largely dependent on commissions that he earns from the tradings. The overall income of a stockbroker may go up to six or seven figures for larger pension fund accounts or institutional portfolios.

Education and earnings of an investment banker

An Investment Banking Courses, it is highly essential to have a graduation degree in finance, accounting, economics or mathematics. While the education requirement does not essentially entail an MBA, a management degree in finance or other related fields actually help.

While a degree in finance, economics, and accounting help in forming an academic base, an investment banker needs other skills to excel, which include hunger for hard work, persuading capabilities, and a great sense of work ethic. The first few years may often be difficult, in terms of finding newer clients, forming connections with them or even from the financial aspect.

An investment banker can earn anywhere up to $96,000 in a year. Bonuses, commissions, and cuts can of course increase this figure to a certain extent.

An investment banker may earn somewhat more than a stockbroker, however, this also depends on the number of years of experience, his educational qualifications and more.