The Ultimate Guide to Investment Banking: Building a Career in an Explosive Industry

Investment banking is a booming industry that provides opportunities for career growth and riches. As an investment banker, you can help companies grow through mergers and acquisitions or by issuing bonds to raise capital. This blog post will give you insider information on how to get started in this exciting field!

What is Investment Banking Operations?

Investment Banking is the process of raising capital for private and public companies and government entities. Investment bankers are responsible for identifying potential funding sources for their clients, which include issuing securities such as stocks and bonds.

They also work with financial institutions to create favorable conditions that result in a successful business transaction or investment opportunity.

Investment banking is a highly competitive career, and it’s not for everyone. However, those who are up to the challenge will find that investment banks offer great potential rewards in an industry with excellent training opportunities and high salaries.

Becoming an Investment Banker:

Like many professions within finance, there’s some debate over what education you need to become successful as an investment banker. A bachelor’s degree in any major from a top school should be sufficient if you’re looking at junior-level positions or analyst roles.

Still, because of the intense competition surrounding senior-level jobs in this field, most companies require applicants to have earned their MBA before joining those programs. That said, having business experience can help set yourself apart.

Investment bankers are the financial advisors to corporations and governments. They help their clients raise money. This includes issuing stock, floating a bond, negotiating the acquisition of a rival company, or arranging the sale of the company itself.

How to Align Education for a Career in Investment Banking Operations Industry?

If you wonder, what course to do for investment banking, here are your options:

CFA

A Chartered Financial Analyst (CFA) degree course can help you get into the IB industry. CFAs are preferred due to their knowledge in management consulting, hedge funds, mutual funds, insurance, etc.

CA

Another preferred education requirement is a Chartered Accountant (CA) degree. CAS is shifting industry as it pays excellently for the skills they possess. Their acumen in finance is another reason which makes them fit well into the Investment Banking operations industry.

GRADUATION

The essential education requirement for entry-level jobs in IB is a graduate degree in any discipline. If you have good experience, knowledge & wish to be an Investment Banker, you can look for a post-graduation program.

MBA (FINANCE)

To become an Investment Bankers, you can choose MBA Finance as the top course over other profiles. MBA Finance courses guide students and train them for IB domain including finance, accounting, business acumen, marketing, financial analysis, management consulting & accounting knowledge. Also, candidates can take up investment banking operations courses or learn investment banking online through various available programs.

Frame a Career with Imarticus Learning:

best investment banking courses with placement in IndiaTo fast-track into an investment banking operations career, you can rely on courses offered by Imarticus Learning. The system is best-fit for learners with under three years of experience.

Partnering with the London Stock Exchange, this course fully equips students with skill-sets required to begin a career in the IB industry.

Upon completing the CIBOP course, students receive an industry-recognized, internationally accredited Certificate of Excellence, another boost to the resume!

For more details, contact us through the Live Chat Support system or visit our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, and Gurgaon.

Investing Banking as a Competitive Industry: Reasons to Become An Investment Banker and what do they do?

Banking has been a competitive industry for years. The competition is so great that investment bankers have to be on top of their game at all times. The best way to improve the chances of landing one of these coveted positions is by getting the education and experience needed beforehand.

There are many reasons that people consider making a career in this new-age transformation of industries. This blog post highlights the reasons to become an investment banker and what an analyst is as a part of the job role.

Reasons to make a career in Investment Banking Industry:

Investment banking is a very competitive industry where only the best and brightest are hired. Because of this dynamic, investment bankers are those getting do everything in their power to attract top talent.

  • Great way to enter Private Equity & Hedge Funds
  • Excellent salary packages
  • Get the best business education possible
  • Explore any field of finance & business while being an investment baker
  • Experience different tasks every day
  • Make an essential impact on the economy and lives on a day-to-day basis.
  • Make lifelong friends that support your professional graphs
  • A great career pathway
  • Exciting Deal making exposure
  • Influence people and clients
  • Playing on excel and financial modeling
  • Get a skill in financial modeling and valuation
  • Surrounded by brilliant and talented individuals
  • Build Credibility for yourself in the start-up world
  • Build Confidence & learn to handle moods and emotions
  • Developing a fantastic work ethic
  • Learn networking and build one

What does an investment banking analyst do?

An investment banking analyst course is designated to evaluate & research investment opportunities to find the suitable investment for the client’s goals. Investment banking analysts are responsible for assessing opportunities & recommend investments based on needs & goals.

They handle corporate clients like new investors, existing investors, or even the analyst’s organization. If the clients are new, the analyst is responsible for gathering & process data, investigating opportunities & present the findings to the team/client.

For existing clients, analyst evaluates investments based on performance & makes recommendations for keeping/replacing them. If the client is their organization, analysts assess earnings reports, assets, industry trends, etc., to make investment recommendations for their institution.

Other investment banking analyst responsibilities include the following:

  • Reviewing & analyzing data for investment portfolios, the performance of stocks & bonds, credit trends, & other transactions
  • Presenting results of research & investigation to internal team or external clients
  • Handling administrative tasks like generating reports, arranging meetings, & other materials, while ensuring the unit operates smoothly.

How to Become an Investment Banker?

best investment banking courses with placement in IndiaImarticus Learning offers investment banking certification courses. The Certified Investment Banking Operations Professional (CIBOP) course fully equips students with the skill-sets needed to kick-start a career in investment banking operations & clearing services.

Upon completing this course, students receive an industry-recognized, internationally accredited Certificate of Excellence.

Through real-world scenarios, trading simulations & hands-on assignments, students understand the industry more cohesively & practically, with an ability to contribute to the workplace from day one. The CBP program stands out in finance courses in its depth, expertise, and relevance to the investment banking industry. It is a valuable pathway to gain industry-relevant domain knowledge and get placed in a leading global bank.

Contact us through the Live Chat Support system or visit our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, or Gurugram for more insights on investment banking certification courses.

Gain Expert Insights & Discover Bespoke Solutions for your Investment Banking Operations Needs

The global investment banking industry is experiencing a boom, which means that the demand for skilled professionals has never been higher. Investment banking is a fast-paced, demanding job where you’ll be working with highly knowledgeable individuals. You will need to have the right skills and knowledge of the industry to succeed in this field, making it an excellent career choice for anyone who wants to work in finance.

With so many new opportunities opening up every year, now is the perfect time to start building your professional network and getting ahead on your plans for a successful career.

This blog post will provide you with insights into gaining expert knowledge to land your dream job as an investment banker!

Why Should Investment Banking be your Career Choice?

The investment banking industry has seen a boom in the last decade. The world is moving towards digitization, and so are all industries along with it. Investment banks deal in stocks, bonds on both the macroeconomic level of the country and the microeconomic level of a company. All transactions between two companies or even countries need an intermediary to ensure a smooth process that ensures better growth for the economy and trade relations between countries/companies etc.

This role can be fulfilled by only an investment bank with proper research resources for analysis at its disposal. They use these insights to advise clients accordingly, ensuring the best decisions leading to maximum returns from the said transaction(s). This ever-growing demand for executives within this field has led many professionals across various sectors to change careers and join investment banks.

This is the perfect time for you to grab this opportunity as an Investment Banker, especially with so many openings in various fields like equity research analyst, corporate finance associate, or mergers & acquisitions banker, etc. While working your way up through each hierarchy of different job profiles, there is no dearth of opportunities waiting for you.

Key Skills required for Investment Banking Job

Analytical skills: A banking job requires a lot of number crunching. You need to make sense out of volumes and tonnes of data, analyze it within no time, sift through important information and facts from the irrelevant ones ensuring that you provide actionable insights.

Communication skills: Investment banking professionals are required to write reports for their clients in order to provide them with valuable insights and help them in decision-making.

Attention to details: Investment banking requires a lot of focus on minute and important tasks because the smallest error can lead to millions of dollars in losses for your company.

Networking: Investment banking is all about building relationships, you can have the best ideas, but if you don’t know who to sell it to or introduce your client’s needs and services into the system, then no one will ever come across them. It’s all about knowing who to talk to and how.

Problem-solving skills: Investment banking professionals are expected to have good problem-solving skills as they need them regularly to produce accurate reports, analyze data, assess client requirements, etc.

Start a Lucrative Investment Banking with Imarticus Learning

Imarticus Learning Institute offers an investment banking course that imparts knowledge, skills & techniques which are necessary to succeed in today’s competitive financial world. This comprehensive training program is designed by industry experts who have years of experience and exposure in the field.

best investment banking courses with placement in IndiaIf you’re looking forward to jumping start your investment banking careers with exciting job opportunities, then Imarticus Learning’s course is your best place to start!

For more insight, connect with us through the Live Chat Support system or visit any of our training centers based in – Chennai, Mumbai, Thane, Pune, Bengaluru, Hyderabad, Delhi, and Gurgaon.

How Automation is improving Employee Experience in Investment Banking Operations?

Automation is not a distant dream anymore. Most of the industries already started using automation to reduce the human workforce, reduce the workload on the human workforce and make the regular repetitive activities more efficient.

best investment banking course with placement in IndiaThe investment banking sector also stepped in to explore the world of automation and how they can utilize it.

When you are looking for an Investment Banking Career, you should know how automation impacts it. Relevant investment banking courses can provide you the knowledge you need.

Investment banking is one of the most rewarding careers however this industry demands long working hours, sometimes till late-night and also on weekends. In spite of efforts from banks, this scenario hasn’t changed a lot. As a solution, many banks started implementing automation to reduce the workload for their employees.

The advantage is that automation has convinced more banks to implement automation in the maximum possible areas.

In recent days, what many companies are preferring are citizen-led automation programs. Citizen-led automation or citizen automation basically enables a non-technical user or a user with limited technical expertise to create simple automation for themselves or their department as needed. This automation feature proved to be extremely beneficial for the bank and their employees, which is the true essence of automation.

With the help of citizen-led automation, the employees are now capable of using low-code tools and they have the basic knowledge of building automation to perform many of their day-to-day activities. The bright side of automation doesn’t end here.

Employees can automate many of their tasks which are otherwise very difficult and time-consuming when performed manually. Through extensive use of automation, employees are empowered to focus on higher-value tasks for the banks which they were not able to pay much time and attention to before automation, thereby causing benefits to the bank like never before.

Banks demand authenticity in their operation. Many banks still doubt the authenticity of automation programs. There exists a common perception among many banks that these citizen-led automation programs are not worth investing in. However, reality speaks otherwise.

Within any industry including banks, there are hundreds of activities that are repetitive in nature and still performed manually. There’s no point in investing in dedicated teams to perform all these activities when all these tasks can be automated.

Equipped with citizen development, employees are building automation and front-office teams are freeing themselves from hundreds of hours previously spent on repetitive tasks. Below, a few cases from the investment banking sector, which are getting automated or can be automated.

Prepare trading reports: Automation bots prepare reports with charts and trading elicited from 3rd party data providers and send them to analysts.

Preparing presentations: Automation bots help build presentations by adding dates and titles, comparable company metrics, market performance charts, and other relevant data points.

Generating public information books: Bots pull company details, press releases, research, and news articles from various sources and merge them into a single PDF document.

Consolidating working group lists: Bots navigate across multiple applications to assemble relevant client information and input it into a formatted document that the team can use further.

Formatting earnings models: Bots work across various worksheets to transfer data from prior quarters into the current quarter’s data and prepare earnings releases.

Handling workflow change requests: When the bankers request workflow changes every time they are to start working on a new project. But an automated bot accommodates changed workflow requirements easily.

Conclusion

Considering the extreme workload in the investment banking industry, automation is a sign of hope. Slowly investment banks are inclining more and more towards automation.

If you are building an investment banking career and considering taking the best investment banking course with placement in India, you may need to pay attention to automation as well because automation is the future.

An Extended Insight of Investment Opportunities in the Shipping Sector!

The strategic position of India by the world’s largest sea route in the Indian Ocean emphasizes the significance of its shipping sector, which accounts for 95 percent of India’s global trade value.

For India, increasing investments to $81 billion, port and harbor construction projects are a top priority. Under an automatic pathway, foreign investment is permitted up to 100 percent in harbor construction projects

India’s shipping sector is a vital component in the country’s economic growth, both by value and volume. According to data from the Department of Ports, Shipping, and Waterways (MoPSW), maritime transportation channels account for around 95% of India’s global trade volume and 70% of overall trade worth. As of April 2020, India had a fleet of 1431 vessels.

Investment opportunities in the Indian shipping industry

With a focus on indigenous developing, maintaining, and operating ports, inland waterways, and shipbuilding, India has streamlined and expanded the scope of investments in the maritime sector.

Port and harbor projects are eligible for up to 100% foreign direct investment (FDI) under the automatic route in India. Indian ports have attracted a cumulative FDI total of INR 122 billion during the previous two decades (US$1.64 billion).

More than 574 new projects relating to the development of Sagarmala have been identified for implementation by 2035, and an investment of INR 6 trillion (US$81 billion) is being sought, both from the public and private sectors, in areas such as port modernization and new port development, port connectivity improvement, and port-linked industrialization.

As of September 30, 2019, a total of 121 projects at a cost of INR 302.28 billion (US$4 billion) have been completed, and 201 projects at a cost of INR 3.09 trillion (US$42 billion) are in progress.

The use of clean/renewable energy sources, as well as the improvement of associated infrastructure for trade and tourism, are also priorities in this sector.

In March 2021, India announced 400 new projects in the maritime sector with an investment potential of INR 2.25 trillion (US$30 billion) for developing its coast. India has also published a 10-year strategic vision for the maritime sector, “Vision India 2030,” which sets out its goals for the development of the industry.

Leverage the Growing Opportunity

Every industry needs cutting-edge professionals to bear the right fruits. The shipping industry is no different. With the right knowledge of investment banking and asset management, you can become a sought-after professional in this field.

Want to Learn Investment Banking and Asset Management?

best online MBA classesJoin Imarticus’ hosted MBA program in Investment banking and equity research in association with JAIN University.

Be industry prepared and secure your career with Imarticus learning today!

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Entrepreneurial Finance & Investment Decisions in Seed-Stage Ventures: An Overview

Startups and Typical Funding Path 

There are many ways to finance a new startup, and finance is one of the most important aspects to consider when launching a business. There are several sources of finance available for startup ventures, which include public finance, private equity finance, venture capital finance, and self-funding (called bootstrapping).

Public finance is very broad in scope and typically includes funds raised by companies from government agencies or government programs designed specifically for entrepreneurial purposes.

Much of this activity takes place at the local level, where city governments work with entrepreneurs through various programs to help launch new businesses within their communities. These programs can vary widely from location to location; however, they generally offer technical assistance on all stages of company creation as well as financial support such as low loans or seed money grants.

What is Seed Financing?

Seed financing (also known as seed money, or seed funding) is the first stage of a startup’s capital-raising process. Seed financing is a form of equity-based finance. In other words, investors give money in exchange for an ownership stake in a firm. This is generally done in a looser formal setting when compared to other types of equity-based capital investment.

How is Seed Capital Used?

Seed capital is typically used to cover the company’s initial operations. Proceeds from seed financing might be spent on market research or early-stage product development (e.g., the formation of a prototype), as well as on essential operating expenditures such as legal fees.

The majority of the funding comes from family, friends, and angel investors. Angel investors are the most important participants in seed investment since they might supply a large quantity of money.

Seed Financing as an Investment Vehicle

The riskiest type of investment is seed financing. It entails putting money into a firm that has just begun to generate revenue or profits. Venture capitalists and banks, for example, typically avoid seed financing because of these reasons.

Seed investment, on the other hand, is one of the most complicated types of financing. This is due to a lack of information on the part of a potential investor. Because it’s crucial for determining whether or not your company has a viable concept and strong management that can implement it, you’ll have to do some research yourself.

The executive’s soft skills, as well as the company’s management abilities, also have an impact. Management expertise isn’t always crucial, however. Many internet giants like Facebook and Google were created by people with virtually no prior business administration experience.

Looking for finance courses with placement?

MBA in investment banking and equity research can skyrocket your career! Join Imarticus’ exclusive program in association with JAIN University and up-level your career in finance in no time.

What are the Features & Benefits of Security Lending & Borrowing?

Securities Lending and Borrowing is a system that allows investors to borrow and lend shares to other market players. For many reasons, the platform is a potential alternative to the derivatives market. Short-sellers are the most common SLB borrowers. On the other hand, Lenders are investors who purchased shares for the long term and have them sitting dormant in their demat accounts.

In most jurisdictions, securities lending and borrowing is an OTC (over-the-counter) commodity where custodians allow borrowing and lending transactions between institutions. SLB, on the other hand, is an exchange-traded product in India.

SLB Features

  • Clearing Corporations guarantee transactions in the SLB section and hence do not include any counter-party risk.
  • Contracts with durations ranging from one month to twelve months are available.
  • Turnover fees from the STT and SEBI are not applicable.
  • The market value of the equities determines the loan amount pledged as security.
  • This SLB allows retail and institutional investors to lend and borrow assets.
  • The securities can be lent by investors who have Ideal Shares in their demat account.
  • This approach allows investors or traders who have short-sold stocks to borrow the securities.
  • National Securities Clearing Corporation Limited ensures that stocks are delivered after the rental period has ended. As a result, there is no chance of the stock being lost.
  • When the borrower returns the stock, any dividends, stock splits, or bonus shares are paid to the lender of the securities.

Benefits 

Both the lender and the borrower benefit from SLB.

For Lender

SLB delivers an extra return on an idle portfolio for Lenders. So, if you have 1000 shares of xyz that you intend to own for a long time, you can lend them out anytime there is a demand. Where NSCCL is the guarantor, the lender receives loan fees.

The potential to make additional money through the fee charged to the borrower to borrow the security is one of the benefits of securities lending from the lender’s perspective. It could also be considered as a way to broaden one’s horizons.

For Borrower

From the borrower’s perspective, it permits them to engage in activities such as short selling. It also provides investors with more perspectives on the market. As previously said, it aids in the increase of liquidity in the market as a whole. As the difference between the bid and the ask narrows, increased market liquidity tends to tighten spreads, which is favorable to all market players.

A borrower is most likely interested in one of the following opportunities: stock price between two exchanges, reverse arbitrage when futures are at a discount to stock, covering short positions to avoid settlement failure, mispricing in options, and other hedging strategies, SLB could be used to borrow stocks from a lender for a fee.

Become an Investment Advisor 

Investment advisors provide advice on a wide range of trade finance topics, including retirement planning, insurance alternatives, and investment techniques. To work as an investment advisor in India, you’ll need a degree in finance or banking as well as a SEBI certificate of registration.

Investment Banking Course

MBA program by Imarticus 

A diploma in banking and finance is Designed Specifically for Future Investors. Your ultimate doorway to New Age Investment Banking and Finance.

Imarticus collaborated with the acclaimed JAIN Online to improve its rigorous diploma in banking and finance, covering every paradigm of New Age Banking Operations

The program is designed to give you in-depth exposure to essential parts of the trade finance Investment Banking sector,

Such as Master Accounting, Financial Analysis, Principles of Economics and Markets, Investment Banking Operations, and more.

How to Join the Investment Banking Operations Industry without a Finance Degree?

In the investment banking operation industry, in most cases, employers seek candidates with a finance degree. But, is it possible to make your way into the industry if you don’t have one? While without a doubt, the task is an uphill one for you to secure a job in investment banking if you don’t possess a finance degree; there are still ways you can get in.

A finance degree will make a candidate skillful in areas, like financial modeling and analysis; however, these are not all the qualities employers seek in a candidate. They want something more too.

The Skills Investment Banks Look for:

●     Communication

Communication is the key in most professions. Your ability to communicate the facts and present your ideas in a proper manner towards your client, team, or management often plays a vital role in job interviews.

●     Intelligence

Investment banking is not an easy industry. To succeed, you must have a higher level of intelligence and resourcefulness.

●     Global outlook

The way you look at finance and its impact within the bigger picture of international relationships and history and international politics plays a major role as an investment banker.

●     Innovation

As an employer, banks not only check if you can solve the problem but also the way you think and if you deliver the most optimum solution in the hard paced environment. Being innovative while solving problems will give you an edge in investment banking.

●     Passion and Resilience

A real passion for business and finance along with the ability to deal with high-stress and demanding environments can make you successful in the investment banking industry.

Now the bigger question is – how to achieve the skills desired in investment banking when you don’t have a finance degree. Below few points could be your guide:

●     Round off your degree

MBA in Investment BankingYou can always make your resume stronger even without a finance graduate degree by taking banking courses after graduation. You may opt for an investment banker course.

A relevant course will help you catch up with your competitors and also will make your resume suitable for investment banking employers.

●     Expand your knowledge base

There are plenty of materials available online or offline. It’s important to learn the finance lingo besides your finance knowledge. Various finance journals and websites are there at your disposal to learn the finance language.

●     Complete industry course

A relevant industry course under your belt not only makes you job-ready but also showcases your commitment to building a career in finance.

●     Score an internship

Many banks hire from their interns. Getting a paid internship for a non-finance student is very difficult; however, there are other options like an unpaid internship or volunteer work with a broker. Considering the impact of internships to get a full-time job in investment banking, alternate ways are not a bad choice either.

●     Look for mentorship

If you know someone who is influential or a successful finance professional, who believes in your professional capabilities, then don’t hesitate to approach for help. This could be a great help in your job search to jumpstart your career.

●     Networking

If you want to step in without a finance degree you have to build a large network. Do not leave any opportunities to connect HR departments in various platforms, do not restrict yourself to a specific location, and reach everyone for help. In short, do everything you can to step into a finance organization. Be patient, work hard and better opportunities will come your way.

Conclusion:

Though it is difficult for a non-finance degree holder to secure a job in investment banking, relevant banking courses after graduation or an investment banker course can give you the edge you are looking for. With enough hard work and networking, you can join investment banking without a finance degree.

Related Article:

What is the best way to start a career in Investment Banking?

Fascinating Insights into the Investment Banking Industry!

The world of investment banking has undergone a huge transformation in the last decade. Gone are the days when investment bankers were professionals who worked for one or two banks and made multi-million dollar deals. In today’s time, this is a highly competitive industry with many more people vying for lucrative positions. In fact, there was an increase in demand by 66% in the last decade, as Bloomberg reported.

The boom in this sector has resulted from increased demand for investment bankers, and it’s not slowing down anytime soon. This article will discuss some of the fascinating insights Into how investment banking works, what an investment banker does, and how to start a successful career as an investment banker.

How does investment banking work?

Investment banking is a lucrative profession as it involves various stages of the financial sector. An investment banker offers its services to organizations and individuals in need of funds for their business, such as startup companies or international conglomerates with projects that require large sums of money.

Investment bankers are often involved in raising capital either through an IPO (initial public offering) or via private placements along with many other activities like mergers and acquisitions. They also provide advice on corporate strategy, securities offerings, etc., based on their current knowledge about domestic markets.

Key insights into the boom in the investment banking industry

– The investment banking industry is experiencing a boom as the demand for bankers has increased. As of now, there are more than 250 new jobs available in this sector, and banks like Goldman Sachs have advertised 130 positions ranging from analysts to associate-level managers. Investment Bankers earn average salaries that range from $69k-$200k depending on their rank

– A graduate degree can help you stand out when applying for these jobs—students who hold master’s degrees or higher make up almost 40% of all newly hired investment bankers each year. Graduates with MBA degrees get paid an average salary of over $100K per annum. Graduates who have a bachelor’s degree earn about $70K per annum.

– The demand for investment bankers has risen because of the changing market dynamics and global climate that is forcing more investors to hedge against riskier assets like stocks or commodities. This increase in investments requires banks to expand their operations. Hence there are increasing numbers of new jobs being created all over the world

What does an investment banker do?

Investment bankers are financial professionals who work to provide advice on raising capital for businesses. They are typically employed by large banks or other companies, although they may be self-employed if working in the private sector.

There are various types of jobs within the industry – an analyst will research potential markets before making recommendations, a trader will attempt to buy and sell stocks at the most profitable rates, while investment bankers often work with clients on mergers and acquisitions before concluding transactions.

Investment banking coursesbest investment banking courses with placement in India provide students with an in-depth understanding of these specific roles to select one that best suits their skill set.

Have a lucrative investment banking career with Imarticus Learning

Imarticus Learning Institute offers a variety of certification courses to help you succeed in your investment banking career. These Investment Banking Courses are designed for beginners, intermediates, and seasoned professionals who want to learn the latest industry trends or brush up on their skills. The courses are taught by expert instructors with decades of experience in the industry.

Fast-track your career into the investment banking industry through Imarticus Learning’s expert network & become an investment banking expert!

For more insight, get in touch with us through the Live Chat Support system or visit our training centers based in – Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

What is Equity in Investment Banking?

A career in finance may take many paths, including investment banking and equity research. But, you need to choose the best banking courses after graduation that can prepare you for various branches of business and finance. If you want to know about equity in investment banking, then you must first understand how investment banking works and why equity is important. So, let us begin by learning what is investment banking in simple terms.

What is Investment Banking?

Investment banking is a division of any bank or financial institution that serves any organization, corporation, or even the government. Investment banking provides these institutions or corporations with underwriting for raising capital or mergers and acquisitions, as well as other advisory services. The job of investment banks is to act as an intermediary between the investors and the corporations that are in need of capital to grow their business.

Investment Banking course with placement in IndiaTo understand investment banking better, you can choose any of the multiple investment banking courses in India available online. These investment banking courses will help you understand the technicalities of investment banking better.

You can check out the certificate in Investment banking course details to see if it is one of the best banking courses after graduation you can go for.

When paying the investment banking course fees, one should look for a program that gives an in-depth knowledge of the topic at hand so that the investment is not regretted later. Out of the many investment banking courses in India, only a few cover equity in investment banking. You can check out one such certificate in investment banking course details here.

What is Equity in Investment Banking?

In finance and banking, equity is more commonly referred to as the shareholders’ equity. For privately held companies, it may also be called owner’s equity. Equity is the value that is attributable to the owners of the business. It is the value or amount of money that the shareholders of the company would be returned in case the assets of the company are liquidated and all of the debt of the company is paid off in liquidation.

In the case of acquisition, equity is the total value of the company’s sales minus any of the liabilities which is not transferred during the sale. Shareholder equity represents the book value of the company. It is one of the most important pieces of data used by analysts to assess the financial health of the company.

There are two types of equity values:

Book value – It is calculated by taking out the difference between assets and liabilities on the balance sheet of the company.

 Market value – It is determined by the current share price or estimated value of shares calculated by professionals.

When choosing what course to do for investment banking, one should zero in on a program that also teaches about shareholders’ equity in investment banking. This will not only give you a deep understanding of how investment banking works but also how equity operates along with investment banking and the difference between the two.

You should choose the program of the many investment banking courses that prepares you for the journey ahead in this industry and makes your Investment Banking career trajectory go higher.

Related article:

How To Become Equity Research Analyst