The Difference between Investment Banking And Equity ResearchJanuary 3, 2017
The field of Finance has always been considered as a very attractive career option, because of the adrenaline rush that one gets, due to working for high profile companies, the exciting hours of the stock exchange and being able to close, deals worth multi-million dollars. Investment Banking and Equity Research are two of the most famous professions in the field of Finance. Although both the professions enjoy a lot of demand from aspirants, but only one of these offers limelight and importance, while the other enjoys being the game changer, behind the curtains. If you are a finance aspirant, looking to make it big and get entry among the big leagues, then either one of these careers can be your sure shot chance. If you are someone, who is very goal oriented and does not need any acknowledgment, equity research would be the best option for you. While on the other hand, if you happen to be someone, who thinks of acknowledgment and appreciation as the biggest motivators, then investment banking is the way to go.
While these differences don’t make much of a difference for someone, who is absolutely fascinated by numbers and logic, there are quite a few nuances in both of these fields, which make them very different from each other. In the earlier days, there were quite a lot of assumptions and reservations regarding both the fields. Equity Research for instance, was thought as the dark horse of the lot and was considered as a dull, unglamorous field to work in. The recent times have brought about a lot of changes, including the much deserved recognition that the field of equity research requires. On the other hand, the field of Investment Banking was always looked up to as an amazing, awe-inspiring career option.
Roles Of An Investment Banker
The professionals in this field, are said to be the major decision makers of the industry. Their job is basically to conduct an extensive research on various financial deals, go ahead and be an intermediary between the deal makers and close the deals. They are said to add tremendous value to their firm, probably which is why they earn handsomely.
Roles Of An Equity Researcher
Equity Research Analysts, are hailed as the real financial heroes, because it is these people, who create valuation models, research reports, which later on assume the status of major decision makers. These professionals are experts in financial modeling, financial statement analysis, valuation of companies and have a clear idea about, how the economy as well as the currency works.
While both the roles are diverse, they are equally important for any financial corporation, in the market. A huge number of aspirants vie to be working in either of these fields. It is well known that, having just a mere graduation degree, will not really get you there. Which is why a lot of candidates opt for, specialization training programs in both investment banking, equity research as well as, financial modeling, corporate finance and so on.